A life insurance policy is a contract between an individual and an insurance company. In exchange for premium payments, the insurance company pays out a death benefit in the event of the insured individuals’ death. Death benefits from all types of life insurance are generally income tax-free.

With immigration reform, life insurance will still be available to illegal immigrants but at a perceivably faster rate. With the length of time decreasing for an illegal immigrant to obtain documented status, immigrants will be able to legally obtain life insurance at a faster rate.