Non-Residents & Foreign Nationals Life Insurance in Ontario

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A foreign national in Canada is an individual who is living in Canada on a temporary basis. They are not citizens of Canada. They have no citizenship in this country. Also, they are not a permanent resident.

Can a Foreign National Get Life Insurance in Canada?

As soon as a foreign national starts looking into life insurance in Canada, they are pleased. With what they discover. There are opportunities to buy life insurance. The insurance companies are a business that has to generate money.  They do this by selling their insurance products. There are a great many foreign nationals in Canada. For the insurance companies, this is another target market. That doesn’t mean that all the insurance companies will offer them coverage. But there are some that do. They will also offer choices.

Why Would a Foreign National Want Life Insurance in Canada?

A foreign national is just like any other individual. They have financial responsibilities. Many of them have a family that they are responsible for. A lot of foreign nationals are here for work purposes. Others are here for educational purposes. No matter what the reason for being here, it should not matter when it comes to their life insurance needs. They want to take the opportunities that Canadian life insurance companies have to offer.

Is a Foreign National Treated Differently for Life Insurance?

It is most likely that foreign nationals are treated differently. When it comes to acceptance for life insurance. The company is going to want to be sure that the foreign national is in the country legally. Part of the proof of this will be an open work permit. Or perhaps a student visa. Then they may be a landed immigrant. Some may have a convention refugee status.

Aside from this, there will most likely be other possible restrictions. Some applicants cannot meet all the requirements. They may still have an opportunity to buy the insurance. But it may mean that there are going to be stricter requirements put on them. For example, they may be subjected to more intense medical requirements.

Another restriction may also be the amount of coverage that they can get. A big factor concerning this will be the criteria that they meet as a foreign national. For example, convention refugees may be restricted to a maximum of 250,000 coverage. Those with an open work permit may be eligible for a higher amount up to 500,000.

Will the Foreign National pay a higher cost for Life Insurance?

This individual will not pay more for life insurance just based on being a foreign national. But will likely pay more because of the metrics used to determine the premium. Part of those metrics will be because they are a foreign nationalist.

What Kind of Life Insurance Can the Foreign National Get?

If all insurance companies operating in the same fashion, the answer would be easy. But they don’t. They all have the same regulations to follow. Aside from that, they can be different from each other. Many of them are. There are several Insurance Companies that will not offer life insurance. Then there are several that will not provide it for foreign nationals. Those that do offer it have set their own rules and criteria. The kind of insurance within the life insurance category will be different.

Permanent Resident Status

This individual will likely have different criteria. Compared to some of the other foreign nationalist categories. For example, they may be allowed to apply for life insurance as soon as they arrive in the country. They may not have to give proof of residency. There will likely be some medical requirement.

Temporary Resident Status

For these individuals, they may find their choices are going to be more limited. Still, they may be able to get up to $10.million. However, the reason they are here may hold more importance. They may be required to be here for working purposes. Plus be employed in a professional occupation.

Some Insurance Companies may create categories for those in the temporary resident status. With the focus being on the type of employment they are in. Also, whether they are involved in a government type program.

What about the Spouse and Children of a Foreign National?

If the spouse and children are with them in Canada, they too may get life insurance. Again, the company offering it will likely have specific restrictions.

How Should a Foreign National Shop for Life Insurance?

Some Insurance Companies advertise more than others. They get the attention of the foreign nationals. But that doesn’t mean they are the only company that will offer life insurance. This individual should shop for life insurance as any other individual would.

They have choices of how they can do this. They can try calling the major insurance companies directly and asking them. If they do offer coverage, then more information can be gathered. This can be time-consuming. It is a guessing game. Trying to determine which companies would most likely offer this type of insurance.

Another option is to go through a broker. Brokers team up with a group of Insurance companies. They are ones that they have chosen to partner with. The broker will shop for life insurance. For the foreign nationals among this select group.

Then there is the option of getting quotes. This may give a lot more access to reaching out to more insurance companies. In a much quicker manner. Then once the quotes have been obtained more research can be done. The individual can determine what they are offering, besides looking at just the premiums.

Life insurance is an important product. It deserves the time and attention needed to shop for it effectively. The individual should decide what their intent is for buying the life insurance. This will help to determine what type of insurance is best for them. Also, it will help them know how much they should buy.

Resources

https://lsminsurance.ca/life-insurance-canada/2017/03/life-insurance-for-non-residents
http://www.timetoinvest.ca/blog/item/life-insurance-for-a-non-resident-in-canada
https://www.sunnet.sunlife.com/files/advisor/english/PDF/A2160.pdf

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