Each year, the United States government issues around 85,000 H-1B visas to foreign nationals from different parts of the world. Many of these applicants are breadwinners who need adequate financial plans to achieve their aspirations and also secure the future of their loved ones. If you are one of those who are on H-1B status, the good news is that your visa category allows you to have life insurance coverage in the U.S.
Life Insurance for Those on H-1B Status
Why Do Those on H-1B Need Life Insurance
Life insurance has many benefits that you can enjoy as an H-1B visa holder. They include:
Financial Security for Your Family
As a foreign national on H-1B status with an H-4 visa spouse who has little or no job employment opportunity, your household financial needs will likely solely depend on you. If you were to pass away unexpectedly, your family members may find themselves in a difficult situation whether they continue living in the U.S. or move back to your home country. With the life insurance lump-sum death benefit, your immediate and—to an extent—extended family members will have a guaranteed financial safety net to fall back on.
Affordable Premium and High Amount Coverage
The U.S. life insurance market is regulated to be policyholder-friendly. Most of the available plans are offered at an affordable rate with highly competitive coverage either as death benefits or other payouts for your policy.
In the past few years, there has been a rise in out-of-pocket spending on chronic conditions in the U.S. Fortunately, many U.S. life insurance companies offer accelerated benefits which allow you to receive cash advances against your policy’s death benefits if you are diagnosed with a terminal illness.
Living Benefits from Your Cash Value
Life insurance benefits aren’t limited to major calamities such as deaths or accidents. They also serve as a suitable plan that can help you get to the peak of your career. There are many policies that have cash value, which you can borrow from instead of taking loans somewhere else.
What Kinds of Policies Are Available to Those on H-1B Status
How Individual Life Insurance Works for H-1B Visa Holders
Individual life insurance is a very reliable, flexible, and portable option purchased directly from an insurance company or through a licensed agent. It offers a high level of flexibility that allows you to enhance your coverage to your needs. Unlike a group plan, individual life insurance will enable you to own as many policies as you can afford. Depending on your budget and choice, you may own an individual term life insurance or permanent life insurance that covers you for the rest of your life. Some of the flexible options you may get to enjoy include:
- Waiver of premium rider: With this option, your future premium payments will be waived by your insurer if you become disabled and cannot earn a living.
- Accidental death or double indemnity rider: With this option, your insurer pays out an additional sum of the death benefit if the cause of the insured’s death is an accident.
- Long-term care: If you experience an illness that requires staying in a nursing home or receive home care, you get to collect monthly payments from your insurer with this feature.
- Future renewal rider: This allows you to purchase an additional policy in the future without having to undergo another medical exam.
How Group Life Insurance Works for H-1B Visa Holders
Group life insurance policies are typically term life plans, which are designed to cover you for a specified number of years. They come in two types: basic term and supplemental term life insurance.
- Basic Term Group Policy: This is usually fully sponsored by employers. It may be set at a flat amount or offered as a percentage of your salary depending on your employer’s policy.
- Supplemental Term Group: This is an option offered by some employers for employees who wish to have more than just the basic plan. You will be responsible for the cost of this additional policy, as the premium rate will be deducted from your salary depending on the coverage you choose.
Group life insurance is very affordable, easy to buy, and typically guarantees coverage regardless of your health condition. However, there are many drawbacks which make it a less reliable option. Some of its disadvantages include:
- The plan is not portable and the policy ceases to be yours the moment you leave the job
- You may have to pay a higher premium as you age
- It is usually rigid with very few options such as riders to fully maximize the policy for your financial needs.
What Those on H-1B Status Need to Know When Buying Life Insurance
Know Your Home Country Insurance Life Policy
While most people on H-1B status are allowed to own life insurance coverage in the U.S., some countries prohibit their citizens from buying life insurance outside their jurisdictions. For example, countries like India, France, Greece, Argentina, Japan, Hungary, and some other nations have laws that prohibit their nationals from buying life insurance policies outside their countries. Apart from this, the United States insurance laws prohibit the U.S. life insurance companies from selling policies to citizens of countries like Colombia, Afghanistan, Iraq, Russia, Lebanon, Sudan, Haiti, and some others. You will need to know if any of these restrictions affect you.
Work With a Licensed Life Insurance Agent
A licensed life insurance broker will help you prepare the necessary documents that are life insurance requirements for your H-1B applicants and assist in getting you the best rate for your status and needs.
Be Ready to Undergo Medical Examination
This will be conducted by the insurance company and may determine your insurability, restrict you to certain products, or determine premium amount.
Prepare Your Travel and Employment Documents
Most life insurance companies in the U.S. will ask for your travel and employment documents before offering you a policy. Social Security Number, ITIN or W-8BEN, visa documents, and others will be needed in your application process.If you are pursuing a green card, the status of your permanent residency process will determine how easy your life insurance application process will be. It will be very helpful if your PERM labor certification and I-140 have been approved, and your green card has been filed by your employer.
How Gold Coast Life Insurance Can Help
Life insurance is financial protection that will be instrumental to your success in the U.S. as well as the future of your loved ones. At Gold Coast Life Insurance, we help H-1B foreign nationals meet their insurance needs through various quality products that guarantee immediate and long-term financial protection for them and their families. Regardless of your health condition, you can always count on us for coverage, as we also cover high-risk applicants with any kind of pre-existing medical conditions. You can get your portable life insurance policy from us today by simply filling this free quote.