Does a person need to be a legal resident to purchased Universal Life Insurance?

My sister's husband came to this country a few years ago, and as any responsible parent he wants to secure the future of his family so he decided to get life insurance. The problem is that my brother-in-law only has an employment authorization card ( this means he is legal in the country). His social security number is real so I wonder why the agent did not want to sell him life insurance. Can anybody answer this please. Only people who have knowledge on this subject.

Public Comments

1. Even though he is legally in the country. He is not a permanent resident and were he forced to return to what ever country he came from. His life expectancy goes down drastically. Its simple math for the insurance company.
2. The agent should of attempted to see if he was qualified for life insurance. He should of wrote the life application and took a check. Then the underwriter of that company has to make a decision on whether or not this person is qualified for life insurance. If he's not, then the check would be refunded. On side note, buying universal life insurance is a really bad idea. Here's how this life insurance works: 1) This is permanent life insurance. 2) The premiums remain level. 3) Premiums are paid for two things: Annual renewable term insurance and cash value. 4) While premiums remain level, the internal cost of the insurance goes up every year. That means less and less of the premiums goes into the cash value and more into the insurance. 5) Eventually, if the person continues to pay the same premium, the policy will lapse unless the person pays more premium. 6) If the person wanted to use the cash value, he has to borrow it and pay loan interest of 6-8%. 7) God forbids if the person dies, all the cash value in the life policy will be kept by the insurance company. As you can see, any life insurance policy that builds cash value is a bad product. If people knew the truth, they wouldn't buy it. But agents sell it as a great way to save money for long term goals. I, however, sell term insurance and keep savings separate from insurance. I tell clients to open an IRA and invest in mutual funds.