Do I need a Social Security Number to get life insurance?
This is one of the most frequently asked questions. It is relevant to immigrants who haven’t got an SSN yet but need to get life insurance in the US.
Following are all the relevant criteria that you will have to consider before you consult an insurance company without a social security number.
Importance of SSN
Let’s look at what SSN is and what it is used for.
SSN is a 9-digit code provided by the US government, and through this number, they verify your identity, your banking, and financial transactions, and your employment status as a citizen.
Is An SSN Necessary To Get Life Insurance?
The answer is No; this is because a life insurance policy contract is strictly an agreement between a private candidate and a private company.
This means according to the US code of conduct, the government cannot get involved in your private matters.
What Are The Requirements?
First Step: You will have to find a private insurance company that recognizes your status as a citizen and is ready to offer you insurance without a social security number.
Second Step: You must have an ITIN, i.e. Individual Taxpayer Identification Number; this number is issued by the Internal Revenue Service (IRS). It is a nine-digit code, which starts with a 9 and has either 7 or 8 as its fourth digit.
Third step: As there is no SSN for the company to assess your personal information, you will have to answer some questions on your application form. These questions are related to your health and age.
Can I Get Life Insurance Without An ITIN Or Green Card?
When getting life insurance, it is not important to be a US resident, but you have to be documented. This means to be a legal resident you need a green card or have an ITIN.
If you don’t have an SSN, then ITIN is important. Otherwise, very few or no insurance company would offer you life insurance coverage in the US. It’s also very hard to get auto insurance without an SSN.
Moreover, it would be beneficial if you have a green card as the insurance company would not ask you to fill in the information about your age and health.
A green card would serve you well and provide easy access to all the information the insurance company requires if you don’t have a social security number.
What Type Of Insurance Coverage Is Available Without An SSN?
Insurance coverage offered without a social security number is often known as a “term- life insurance” policy. This means that the death benefit will be provided to the insurance holder after a specific time.
And if the insurance holder is still alive when the policy expires, it is up to the insurance holder to decide whether he/she wants to renew, or terminate the policy, or convert the policy into permanent coverage.
It is worth mentioning that term-life insurance usually lasts for 15 to 20 years in most cases. The type of insurance you choose depends on your age, your objective, and your financial needs.
Additional Feature That This Type of Insurance Offers
Some of the insurance provided by the company comes with a feature called riders (an add-on to the insurance plan). It means that if you are an insurance holder, and die in an accident, your death benefit would automatically double.
For example, if you have a $70,000 death benefit, having a rider would turn it into a $140,000 death benefit. This would be given by the insurance company to your beneficiaries after the accident.
Can I Get Life Insurance Without Any Medical Exam?
To avoid a medical exam, you might have to take a no medical exam life insurance policy. You will be asked a few questions about your health, and that’s all. But you cannot get insurance by providing any information regarding your health and fitness.
Who Can Be My Beneficiary?
The beneficiary is an individual that you nominate when taking out a life insurance policy. You state that this individual should be given financial benefits after you die.
But before you nominate someone for this position it is necessary to ensure that this person has a social security number or the nine-digit code issued by the Internal Revenue Service.
If not, then you should inform your insurance company about it. Your insurance company will work to get this number for the person you want to nominate as your beneficiary.
Is There Any Age Limit?
To get life insurance without an SSN, you will have to comply with numerous different policies. And all of these policies demand the applicant should be within the age limit of 18 to 80 years.
If you’re over 80 years of age, then don’t worry you can still avail an insurance policy for yourself by contacting the respective company that you are dealing with.
They will surely help you find some way to provide you with the right kind of insurance plan for your needs.
How Much Do You Get As A Non-US Resident?
Some of the main reasons people don’t have a social security number are either they are not US residents, or they have just shifted to the US and are now planning to settle in the country.
Insurance policies for these people are a little different from the rest who are US residents with an SSN. So, they get reimbursement for the full treatment. However, the policy for nonresidents is that they get up to $250,000.
But if you are willing to recover more, then you should consult your insurance company. They would have a way out of this.
Bottom Line
We hope that you got all the answers to your questions and this article gave you valuable insights into what you were looking for.
If you are worried about your ITIN code, then we would like to tell you to relax. You can apply online for ITIN, and it takes only 10 minutes to fill the application.
You will get your ITIN code in a couple of days, which would make it easier for you to avail a life insurance plan in the US. Plus, there are numerous experts who can help you fill the application correctly.
