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This content is for informational purposes only and is not intended to provide financial advice.
While most of the difficulties of immigration are in the journey, you will need to figure out how to survive and afford life in the U.S. Thankfully, there are a ton of options for health and insurance you have to choose from.
Insuring yourself after you’ve moved to the U.S. is imperative for a successful future for both yourself and your family, and its importance should never be overlooked.
You can even find life insurance for undocumented immigrants if you know where to look. Let’s dive in.
Life Insurance Options
America is a nation of immigrants, and regardless of your U.S. residency status, everyone deserves the comfort of knowing their loved ones will be cared for after they die.
As long as you can come up with the required documentation and know how the coverage options work, it shouldn’t be too hard to navigate.
Which documents are required will vary depending on your legal status in the U.S. Green card holders will qualify for the best rates and experience few obstacles. Most visa holders will be forced through additional steps, and student visa recipients might be hesitant to offer coverage because of their temporary status.
If you’re an undocumented immigrant, you still do have options. The most important requirements are the following:
- You must live in the United States. This doesn’t mean owning a home, just that you reside here.
- You will need to acquire an individual taxpayer identification number (ITIN). This will be a substitute for a Social Security number. You can apply for one through form W-7 from the IRS.
- Open a U.S. bank account. This is required to draft the plan premiums.
In addition, it can be easier if you can provide a driver’s license, information from the last doctor you saw, and employment or income information.
Once you’ve gathered that information, search through providers to find one willing to begin the insurance application process with an ITIN number.
Health Coverage Eligibility
While undocumented immigrants aren’t eligible to buy HealthCare.gov health coverage or other healthcare savings options, they can apply for coverage on behalf of documented individuals. If you are a “lawfully present immigrant,” then you are eligible to buy private health insurance on the HealthCare.gov marketplace.
You may even be eligible for lower costs on monthly premiums and lower out-of-pocket costs based on your income.
If you meet your state’s income and residency rules, you or your family may also qualify for Medicaid and the Children’s Health Insurance Program (CHIP).
Unfortunately, you will need to wait for five years after receiving a qualified immigration status before you have access to the coverage.
States do have the option to remove that waiting period for children and pregnant women if they are lawfully present in that state. You can find out if your state has opted out of that waiting period at Medicaid.gov.
Commonly Asked Questions and Concerns
The National Immigration Law Center has provided some excellent advice when it comes to questions and concerns many immigrant families might have. In many cases, undocumented immigrants can provide the change this country desperately needs.
Here is a sample with a few of those legal opinions:
1. Could information I provide for health coverage be used against me?
2. Any information that is provided when applying for Medicaid, CHIP, or the marketplace is legally only allowed to be used to determine eligibility, not for immigration enforcement purposes.
3. Must all household members provide Social Security numbers?
4. Only individuals with a valid Social Security number are required by law to provide it. A lack of a Social Security number may not be used to deny or delay an applicant or their household’s application to the health insurance marketplace.
5. What are the consequences of misrepresenting myself or providing false information on applications?
6. This is fraud. If you lie on a government application then you will be held accountable by the benefiting agencies or even immigration authorities.
7. What should I know if I’m applying for coverage for another household member?
8. You must provide accurate information and should never provide information about their citizenship or immigration status. The household member may need to provide additional information like income and agree to file federal taxes.
More Money-Saving Tips
Now that we’ve discussed some of the ins and outs of receiving insurance in the United States, it is important to talk about day-to-day money management. Whether we like it or not, America is a capitalist country, and cash is king.
Here are some ideas to get you started on your pathway to financial stability.
Learn About Credit and How It’s Used
It is important to show the world that you are responsible with your money. This is one of the primary uses of credit in America.
As you perform transactions, like applying for car or mortgage loans, paying off those loans, and paying off any credit card bills, your credit score will improve.
This will show others that you will likely pay off the car loan as you have a good track record of paying your bills. Your credit score can also impact your auto insurance rates along with the make and model of your car. The cost of insuring a Ford F150 in each state can vary slightly depending on the driver’s credit score.
Find a Money Transfer App That’s Right for You
Immigrants in America often send money back and forth from their home country. Whether it’s to your family or someone who is supporting you, you need to find a safe money transfer service. Bank wire transfers can get expensive.
Fortunately, there are many apps available with much lower fees that provide easy access right from your phone. These apps include:
- CashApp
- PayPal
- Venmo
- WorldRemit
- Zelle
Evaluate Your Fixed Monthly Expenses
Some bills will need to get paid each month. Figure those bills out and plan for them beforehand. These are typically any mortgage or rent payments as well as utilities, credit card payments, and loan payments.
They can also account for groceries and transportation fees, so work on finding average dollar amounts. Then, if possible, focus your efforts on covering all of those bills first before spending anything extra.
It is also important to revisit and revise this fixed expenses budget in the future as things change. Life becomes more expensive each year and you might get a new loan, start taking the bus, have a child, or much much more.
Make sure you keep track of and plan for these new monthly charges.
Start an Emergency Fund
As if paying your monthly bills isn’t hard enough, having emergency savings can be lifesaving.
These so-called “rainy day funds” provide cash flow in dire situations like losing a job, medical bills, or family emergencies. Emergency funds are powerful tools to ensure that you and your family can ride out the storm no matter what life might bring.
Experts recommend having an emergency fund amount equal to about six months of expenses. So take whatever your fixed expenses are and multiply that by six. That amount should be your goal for your emergency fund.
Prepare Yourself for a Successful Future by Securing Insurance
Moving to a new country is no easy feat, but you’ve already come so far. Celebrate your achievement by preparing yourself and your family for the future in responsible ways like getting your family insured and starting to save money.
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Luke Williams writes and researches for the insurance comparison site, ExpertInsuranceReviews.com. His passions include best practices for insurance and helping undocumented immigrants live a comfortable life in the U.S.