If you are shopping for life insurance as a non-resident then you have to be very clear as to what your status is. The insurance companies you approach are going to want to know this.
Who is Considered as a Non Resident?
In most cases, it is those who do not have significant ties to Canada. Also, you do not live in Canada during a tax year. Or spend less than 183 days in Canada during a tax year.
Life Insurance Options for Non Residents
It can be difficult for non-residents to get life insurance. One of the reasons is because not every insurance provider in Canada will offer life insurance to non-residents. However, there are some that do. There will be specific rules and restrictions.
Restrictions on Life Insurance for Non Residents
There can be a few restrictions, also important ones. Some will only offer life insurance to non-residents. Who fit into specific categories.
Non Residents with Work Permits
There are many individuals that come to Canada on a work permit. When they do, they may fill many different types of positions. Some insurance companies may provide non-resident life insurance. Based on the type of employment they are in. For example caregivers and nannies, or physicians. There are many other types of non-residents allowed in Canada. Under different categories. There are insurance companies that will consider them as well.
Types of Life Insurance Restrictions and Conditions
One of the major restrictions is often the value of the life insurance. Some of those offering this type of insurance will give up to $500,000. There may be other restrictions as well. The Insurance Company may require then to have no less than a one-year work permit. Also, one that will not be expiring in the first three months following the acceptance of the policy. Otherwise, there has to be proof of the work permit renewal.
They may be a condition that the applicant has to confirm that they are going to be staying in Canada.
Medical requirements could be quite stringent. These will depend on how long the applicant has been in Canada for. The insurance shopper may have to go through a medical. Plus have blood work done that will screen them for specific strains of Hepatitis such as B and C.
Restrictions on Nationalities
Those insurance companies will not care about nationality itself. But they may be concerned about the country that the non-resident comes from. They will look at the risk assessments as they pertain to that country.
Non Residents with a Study Permit
Insurance companies will classify the different types of non-residents. Based on their reasons for being in Canada. There are those that have the work permits as previously mentioned. Then there is another classification such as students who hold student permits. They too may be eligible for life insurance. But the amounts may be different based on their circumstance. In some cases, they may only be eligible for $250,000. coverage. Then again if they are eighteen and older and in University one may be eligible for $500,000. But this too would depend on their intentions of remaining Canada.
Post Graduate Work Permits
There are some insurance providers that may provide life insurance up to $250,000.
Other Non Residents
There are those who are here under open work permits. Then there are those who are Convention Refugees. Non-residents in these classifications may also be able to get life insurance. But again there will be specific terms and conditions.
Tips for Non Residents to Shop for Life Insurance in Canada
All of the rules and regulations that non-residents have to abide by can be overwhelming. Life insurance can be very technical. It can be difficult to understand even for Canadian residents. The non-resident can use the same tactics for shopping for life insurance just like anyone else does.
Deciding on What is Needed
There is a tendency for one to want to buy as much life insurance as possible. It is because they get concerned about the financial well being of their beneficiaries. But, it also comes down to how much one can afford. For non-residents, they often have additional expenses. They may be responsible for caring for their family back home. They have their expenses while here in Canada. It can make money tight for them. Having to pay premiums can be an extra expense.
The first step is to think carefully. To how much money would be able to sustain the beneficiaries. Based on their circumstances and needs. This can be the starting point for shopping for life insurance.
The next step is using the proper resources to find out who will provide the insurance. Many non-residents are not familiar with the resources that may be available to them for this. The easiest approach is to get some quotes. All this takes is providing enough information so that a selection of quotes can be provided. Once this is done then the nonresident has something to start working with.
There are two options. The insurance shopper can take the lowest quote. Then opt to go with that particular insurance provider.
Or, there is the option of doing more research to see what each of them is offering based on the quote.
No two insurance companies are the same. Even though they are selling the same insurance product. It is important to compare what is being offered. There are opportunities to do this. A lot of time is already saved by getting the quotes. It means the non-residents does not have to try and determine what insurance companies are willing to insure them to start with.