It can take a while for immigrants to get used to living in Canada. They have a lot of responsibilities like everyone else does. Many have a family that they need to care for and to protect financially. One of the steps they will take to do this is by purchasing life insurance. But, the question gets raised whether immigrants are eligible for life insurance.

Can Non Residents Buy Life Insurance in Canada?

non resident

There are opportunities for immigrants to buy life insurance. But, it can be difficult if one is not familiar with this type of insurance product. There are several insurance companies that will offer life insurance packages to immigrants.

What Do Life Insurance Companies Expect of Immigrants?

immigrants

Quite often immigrants may feel that they are being centred out. When it comes to life insurance and the restrictions that may get put on them. What has to be understood is that insurance companies are all about risks. This is a business that they operate. They are using their money to cover those that they insure. They want to be sure that they have as much protection in place for this money as possible.

Life insurance has a large payout in most cases. The value of the policies can be very high. The higher the value of the policy the stricter the insurance companies is going to be. The insurance companies are going to look at what risks the immigrants pose for them. They are not segregating immigrants with this process. Every individual that a company insures gets scrutinized. About the risks that they can create for the insurance company.

What Risks Do Immigrants Create for Insurance Companies?

Immigrant Status

Insurance companies have to know that an individual has their immigrant status. There are many people that come to Canada under different programs. Some are only coming on a temporary basis. For example, they may be here for work. Or, they may be here as a student. The requirements for life insurance for them are different. Landed immigrants who are permanent residents have to prove that they have chosen to make Canada their residence. To prove this the applicant will have to provide a permanent resident card. Sometimes it can take a while to get this. They may need a letter of acceptance which some of the insurance companies will accept.

Length of time in Canada

Every insurance company is different, so their requirements are going to be different. Some may set a specific time. That the immigrant has resided in Canada. Others may not get concerned about this. There may be some extra requirements for those that have not been in Canada for a full year as yet. There may be a risk that the immigrant has only been here for a few months. It may not be enough validation that they intend to stay permanently. Insurance companies are not going to take the risk. Of insuring individuals that are not going to stay in Canada.

Potential Medical Risks

Something that is going to factor into this is the country that they originate from. Some of the insurance companies will require specific medical testing. Such as blood profiles. This will be because of concerns about certain medical conditions. Ones that can occur in the country of origin.

Quite often the insurance company will wall want proof of social insurance number.

Permanent Residency and Temporary Status

canada

Immigrants coming to Canada have to go through a process. It can be a long process. This creates a concern. For those who want to make sure that their family is financially protected. It can take anywhere from 9 to 16 months. This is a long time to wait for a permanent residency. Individuals want to buy life insurance as quickly as possible. Without having to wait for their permanent status.

There are some insurance companies that realize this. What they will do is have insurance packages for immigrants. Ones who have not received their permanent status. There is one criterion that they will have to meet. It is that they have the intention of staying in Canada on a permanent basis.

What Insurance Restrictions Will Get Placed on Immigrants?

One of the restrictions that may get placed on immigrants is the amount of insurance that they can buy. Some of those companies that offer this insurance will only allow for a limited amount. Then there are other companies that will allow more. Usually, the immigrants get subjected to the same criteria other insurance shoppers face.

Insurance Options

Immigrants will also find some insurance companies will give them options. In their choices of insurance. One of the important factors with immigrants is money. As new arrivals into Canada, they are on a strict budget and trying to get themselves settled into a new way of life. It often means that they have employment that may not be paying a great deal to cover all of their costs. This requires the need to find life insurance that is going to be affordable. One of the best insurance when it comes to affordability is term insurance. The insurance companies may again put a limit on the amount they can buy. But, they will still make term insurance plans available to them.

Shopping for Insurance for Immigrants

Immigrants have the same right as any other Canadian to shop for their insurance needs. They are going to have to disclose that they are a new immigrant. But aside from this, they will have choices from those that are willing to insure them. Immigrants can ask for quotes. To help narrow down those companies that will offer them this type of insurance product. With the quotes, they get they can then make comparisons. To see which insurance company is offering them the best. Based on their circumstance.

Resources

https://www.quora.com/How-long-does-it-take-to-get-Canadian-Permanent-Residence
https://www.empire.ca/sites/default/files/documents/E-0769-GuidelinesForImmigrants-EN-web.pdf