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You meet with a life insurance agent to purchase insurance in case of your unexpected death. The agent presents the different options, discusses your needs and goals, and recommends a policy. You agree and ready to move forward. After she asks you for your name and birth date, she asks, “What is your social security number?”
You gulp, “I don’t have one…”
The agent appears dejected, and you are sad. You know how important life insurance is to protect your family. You both don’t know what to do next.
In this article, we discuss how to purchase life insurance without a social security number.
Why Do You Need A Social Security Number?
Actually, you don’t. Nope. Nada. It is not an industry requirement. You can purchase life insurance without a social security number (SSN). The issue is most carriers require it.
“Well, John, why do companies require it?” you ask. That is a good question. The answer is the insurance carrier wants to know who you are. There are a myriad or reasons, and they are important:
- money laundering – money laundering is the process of making illegally obtained money appear “clean” through a series of transactions in legitimate financial transactions. These transactions commonly include life insurance. For example, a drug dealer places his drug money through a series of life insurance transactions is money laundering.
- you are who you say you are – with identity theft rampant, carriers want to make sure you are who you say you are. This follows the US Patriot Act as well.
- MIB report – we discussed the importance of the MIB report. Your social security number will help the carrier obtain the correct report.
- pharmacy / health / motor vehicle records – for the same reasons as the MIB report. You want to make sure the carrier has the right information. If you have a common name, you wouldn’t want a carrier selecting the wrong person based on name only.
Purchasing Life Insurance Without A Social Security Number: 1st Step
If you don’t have a social security number, most likely it is because you are a
- foreign national
- resident alien
See our article on obtaining life insurance for non-citizens. Valid green card holders can usually obtain life insurance. Therefore, if you are considered a non-citizen, and are not here illegally, you can probably purchase life insurance as a resident citizen of your home country. Our article explains more in detail how that process works.
However, if you are living here in the United States, with intentions on living here long-term, you can purchase life insurance without a social security number. You will need an ITIN. This is the first step. What is that? It is an individual taxpayer’s identification number (ITIN). You can obtain it from the IRS through form W-7. ITINs are used for income-tax reporting only. You will need an ITIN if you generally meet the following:
- foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs.
- non-resident alien individuals not eligible for a SSN. You are required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty.
- other examples of individuals who need ITINs include a:
nonresident alien required to file a U.S. tax return
U.S. resident alien (based on days present in the United States) filing a U.S. tax return
a dependent or spouse of a U.S. citizen/resident alien
a dependent or spouse of a nonresident alien visa holder
Purchasing Life Insurance Without A Social Security Number: 2nd Step
Once you have an ITIN, we can proceed with the insurance application process. This includes reviewing your needs, determining a budget, and applying for life insurance. This is the 2nd Step.
We work with several carriers that allow ITINs on its applications. One we enjoy working with has a very simple application process. You can purchase up to $250,000 of term life insurance. Your spouse and children can be on the same application. The application includes 4 required health questions. If you are unfamiliar with the life insurance application process, that is unheard of for term life insurance. The application process can be administered completely online with the help of us. The process is very easy and does not take a long time to complete.
We also work with companies that allow ITINs for whole life insurance applications.
Purchasing Life Insurance Without A Social Security Number: Final Step
This is the final step. If you have interest, fill out the information below, and you will be emailed a brochure information on this favorable carrier. Once you receive the brochure, review the information and then contact us. Of course, if you have any questions, feel free to contact us directly here or call or text us. We hope you now realize that you can purchase life insurance without a social security number. You know how important it is to protect your family. We would be happy to help and work only in your best interest.