As an E-2 treaty investor with several personal, family, and business interests to protect, life insurance can be a very useful financial plan to help achieve and preserve your goals in the U.S. You need to leverage the well regulated United States life insurance market which offers E-2 holders and their dependents numerous benefits that are hard to come by elsewhere.
Life Insurance for E-2 Investors
Why Do E-2 Investors Need Life Insurance
Financial Protection for Your E-2 Investment
The investment part of the process is the most crucial requirement of the E-2 visa. Whether you’re going to establish a new business or taking over an existing one, there will always be some complexities and risks which may impact your E-2 business success. Life insurance can be needed financial security to see your business through in the U.S.
To Protect Your Family Members
Due to the many uncertainties of life, it is difficult to predict what situations you will encounter down the road. You may be well prepared to succeed in the U.S. and give your family the best they deserve, but catastrophes such as death, accident, or life-threatening illness can completely throw your plans off balance. In a situation like this, you and your family will need a financial safety net. This is the main goal of life insurance coverage for you as an E-2 visa holder.
For Peace of Mind
Having life insurance coverage gives you peace of mind over your investment and family knowing that financially, you have secured the future of those that matter to you. With this in mind, you will be able to concentrate on your business and worry less about their future.
What Kinds of Life Insurance Policies are Available to E-2 Investors
Term Life Insurance for E-2 Investors
Term life insurance, just as the name suggests, is designed to cover you for a specific term. The coverage could be for 5, 10, 15, 20, or 30 years. If you pass away during the term of the policy, your beneficiary will be given a lump sum amount known as a death benefit. However, if you live through the coverage term, you may choose to renew, convert it to permanent coverage, or allow it to terminate after its expiration.
Permanent Life Insurance for E-2 Investors
As an investor, permanent life insurance can be your best bet due to its advantages over term policies. A permanent life insurance policy is designed to cover you for the rest of your life, so long as you keep to the terms of the coverage by paying your premium.
Unlike term coverage, which is mainly for a death benefit, a permanent policy offers both living and death benefits, which allows you to enjoy the proceeds of the plan to meet different personal, family, and business needs while you are still alive.
What makes it more preferable is its investment component known as cash value. Your cash value represents a certain portion of the yields on your policy, which you can borrow from to meet your business needs instead of getting loans elsewhere for your urgent financial needs. Some of the most beneficial permanent life insurance products for an E-2 investor include:
Whole Life Insurance
Whole life insurance offers a fixed premium rate. The mode of payment could be for a fixed number of years or stretch over until you reach a certain age. As you pay the premium, your cash value grows, and you may borrow from it with the agreement to pay back the borrowed funds. If not paid back before you pass on, the borrowed amount would be deducted from the death benefit to be paid to your beneficiary.
Universal Life Insurance
Universal life insurance is another permanent product, but more beneficial and flexible than whole life, in that you may review your policy along the line. As your family and business grow, there may be a need for adjustment in your financial plans. Universal life insurance allows you to readjust your premium payment and death benefit downward or upward as you deem fit.
Survivorship Life Insurance
If you want to leave enough money for your dependent children after passing away, this option is a good one. It insures two lives at a time—usually the husband and wife—and pays out the death benefit to your heirs when both people pass away.
Any of these options would be ideal for an E-2 investor, and the good news is that you can get as many policies as possible to ensure adequate coverage now and in the future.
What Do E-2 Investors Need to Know When Buying Life Insurance
Let a Licensed Life Insurance Agent Guide You
This is the first step you should take as an E-2 foreign investor because it takes a professional who understands the insurance market terrain of the U.S. to help you get the best policy and make the most of it.
Understand the Underwriting Guidelines for E-2 Status
Life insurance underwriting guidelines for non-residents requires several conditions. You need to know your country’s life insurance law, as some countries don’t allow their nationals to own life insurance coverage outside their territories. You will also need to undergo a medical exam, and prove worthy ties to the U.S.
Decide Your Life Insurance Needs
People buy life insurance coverage based on their needs and budgets. Discuss your business and family immediate and long-term financial needs with your agent to ensure you’re not underinsured.
Read and Understand the Policy Terms and Conditions
Before appending your signature to a life insurance plan, make sure you understand the details of the contract. You may come across several unfamiliar terms in the policy, so ensure that your agent clearly explains them to you.
How Gold Coast Life Insurance Can Help
At Gold Coast Life Insurance, we provide foreign nationals on different visa status with the best life insurance coverage for their business, career, personal and family needs. We have various flexible products for E-2 investors regardless of their health status. Being a high-risk applicant with pre-existing conditions won’t be a problem with us. You can get the best E-2 status life insurance policy from us today by filling out this free quote.