Congratulations and welcome to your new life as a U.S. citizen! As you adjust to life as a citizen of the United States, there are many things to consider and plans to make for your future. One of the priorities on your list should be life insurance, since it’s something virtually everyone needs.
Children and infants are a common debate in the life insurance industry: Does a baby need life insurance? Is it worth it? The one choice most can agree on is to be sure other critical financial obligations have been met such as a savings account, life insurance policies for the parents, and the juvenile’s higher education fund. After these primary obligations, the parents should consider additional financial security for their children.
What is life insurance?
Life insurance is something you buy to protect those you love so they don’t suffer financially if you and your income are no longer there. Life insurance could be the only thing that stands between your loved ones and financial hardship. Those who are approved for and purchase life insurance pay an insurance company a premium, and if the policy owner dies while covered under the life insurance policy, the company pays a cash benefit to the beneficiary or beneficiaries listed in the policy.
Life insurance is there for the uncertainties in life. Ask yourself, what if I died unexpectedly? Could my family continue their way of life? Will my family have the funds on hand to pay for my funeral and final expenses? After all, it’s not about you, it’s about them.
Generally, there are two types of life insurance: whole life and term life insurance. Which kind is right for you depends on the specifics of your life – your age, income, and other factors. Whole life provides coverage for your entire life, while term life provides coverage for a limited period of time and is usually less expensive than whole life.
What else should you know?
As a new U.S. citizen, you should have a Social Security number, which is good, because according to policygenius.com, life insurance “applicants usually need a Social Security number” before applying for life insurance1.
Here are a few more things to know …
According to quotacy.com, “most life insurance companies want you to have lived in the U.S. for at least two years … before applying for life insurance as a U.S. citizen, but this is often a non-issue since you cannot apply for citizenship until you have been a permanent resident for at least five years (three years if applying as the spouse of a citizen).” Quotacy.com also asks new citizens to consider the reasons they’d need life insurance, like going to school and acquiring private student loans or needing to provide income replacement for their family2.
Now is the time to make sure you prepare yourself and your loved ones in case the unexpected happens. No one is completely immune to accidents and unforeseen illness, so providing some financial protection for your loved ones should be high on your list.
If you have questions, contact a financial advisor or a licensed insurance agent.
- The best life insurance companies for visa & green card holders
- Term Life Insurance for New American Citizens: A Guide for Families
Categories: Insurance, Life Insurance, Term Life Insurance, Whole Life Insurance