Life Insurance in the United States: A Practical Guide for Immigrant Families
Only 4 in 10 Hispanic adults own life insurance. This guide answers the questions we hear every week: what types exist, what happens if you only have an ITIN, what it costs, and how to avoid mistakes.
Life Insurance in the United States: A Practical Guide for Immigrant Families
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According to LIMRA's 2025 Insurance Barometer Study, life insurance ownership among Hispanic adults in the United States fell from 51 percent in 2021 to just 40 percent, the lowest of any group, and about half say they do not have enough protection. The reasons we hear every week are the same: "I don't know how it works," "I think it's too expensive," "I don't have a Social Security number." This guide answers all three.
How life insurance works in the United States
It is a contract with an insurance company: you pay a monthly or annual premium and, if you pass away while the policy is in force, the insurer pays an agreed amount to the people you named as beneficiaries. That money is generally free of federal income tax and does not go through probate, so the family receives it within weeks.
Beneficiaries can live in the United States or in your home country. What matters is that they are correctly identified in the policy and that they know it exists.
The policy types you will come across
| Type | Duration | What it is for |
|---|---|---|
| Term | 10, 20, or 30 years | Protecting income, mortgage, and children while they grow, at the lowest cost |
| Whole life | Lifetime | Final expenses, inheritance, and guaranteed savings |
| Indexed universal life (IUL) | Lifetime | Protection plus cash value linked to a market index, with flexible premiums |
| Final expense | Lifetime | Small amounts, simplified approval, funeral and repatriation |
To compare the first two in depth, read term vs. whole life insurance; for the third, see our IUL page.
Can I get life insurance with an ITIN?
Yes, in many cases. No federal law requires a Social Security number to buy life insurance. Each insurer sets its own requirements, and several carriers that serve the Hispanic community accept an ITIN (Individual Taxpayer Identification Number) together with valid identification such as a passport or consular ID. They typically ask for:
- a minimum time living in the United States, which varies by company;
- a U.S. address and a local payment method;
- that the applicant signs the policy inside the United States.
What does not change with an ITIN is underwriting: age, medical history, and smoking count just the same. An advisor who knows which carriers accept ITIN saves you rejections and time.
What does it cost?
Less than most people think. LIMRA's studies consistently show that consumers overestimate the price of life insurance several times over. The real cost depends on four things: age, health, policy type, and amount. A healthy young adult can insure hundreds of thousands of dollars on a term policy for what a family dinner costs each month. What does make a policy more expensive is waiting: every year that passes, the premium goes up and health can change.
To calculate the right amount, follow the four steps in how much life insurance do I need?.
Repatriation and final expenses
For many immigrant families, being buried in their home country is a priority. According to the NFDA's 2023 General Price List Study, a funeral with viewing and burial in the United States has a median cost of $8,300; international transport adds several thousand more. A final expense policy, or a small permanent policy, is designed precisely for that. See our final expense page for how it works.
How to choose an advisor and avoid mistakes
- Verify the license. Every agent must be licensed by your state's department of insurance. You can look it up online.
- Ask them to compare several carriers. An independent agent can quote several companies; a captive agent only their own.
- Insist on an explanation in your language and in writing: premium, amount, duration, exclusions, and living benefits.
- Never lie on the application. Omitting health information or habits can void the policy.
- Be wary of pressure. If they push you to sign today, that is a red flag.
- Review the beneficiary every year and tell your family where the policy is.
Frequently asked questions
Does my policy stay in force if I return to my country?
It depends on the contract. Many policies keep paying as long as premiums are current, but some have residency conditions. Ask before you sign.
What happens if I stop paying?
On a term policy, coverage ends after a grace period. On a permanent policy with cash value, that value can carry the premiums for a while.
Can the government take the money from my family?
The benefit is paid to the beneficiaries you designated. It is not a public program and does not depend on the immigration status of the person receiving it.
Talk to a bilingual advisor
If you want to know what options you have given your immigration situation, health, and budget, request a free consultation. A licensed FFA Financial Group advisor reviews your case, compares carriers that accept ITIN when applicable, and explains everything in writing, in English or Spanish. You can also learn about our family protection program.
This article is informational and is not financial, legal, immigration, or tax advice. Requirements for ITIN applicants, premiums, and product availability depend on each insurer and your state.
