Life Insurance in the United States

 Life Insurance in the United States

Life Insurance
 Life Insurance in the United States

Life and death!

In 2019, 57% of Americans had life insurance and 4 in 10 Americans were not eligible for it. However, many life insurance companies, there were 770 companies in the same year to offer diversified and diversified insurance policies. You'll understand that the life insurance market is huge - several hundred billion dollars a year, so how do you navigate the jungle of contracts? How much does a life insurance contract cost and how much can it earn? It's all about life and death here.

What is life insurance?

Life insurance is a contract between a person (the participant) who insures or insures a person of his choice and an insurance company, for a contractually specified period, by appointing the beneficiary or not.

Specifically, there are two main types of life insurance in the United States:

Death insurance: Here, the death of the participant during the guaranteed period is what leads to the insurance company paying the premium. Thus, if the subscriber survives during the duration of the contract, the payments will be "sunk" because the insurance company will not owe anything at the end of the contract.

Life Insurance: The purpose of this contract is the accumulated savings during the duration of the contract. If the insured is alive at the end of the contract, he or she will receive an annual salary or capital, and if not, the beneficiary will be (provided there is anti-death insurance).

Life insurance.

The total price of life insurance in the United States is related to the assessment of the policyholder's life expectancy. In principle, insurance companies take into account age, sex (men generally pay more than women), the medical history of the policyholder (serious illnesses or family history and pre-existing medical conditions) and lifestyle (smoking, alcohol consumption and dangerous or dangerous sports). ... In short, your life has been combed with a fine tooth comb, and this can amount to consulting your credit score in the US!

Therefore, there are many life insurance policy rates as for contractors, who must fill out a detailed health questionnaire and conduct blood tests and medical examinations in some cases.

However, despite the strict rules, the American life insurance market is more flexible than its French counterpart. We recommend that you contact a recognized life insurance specialist who speaks French before signing anything.

Life insurance, why?

There are many advantages to buying life insurance in the United States.

Means of saving and raising the value of capital

A life insurance contract allows you to enhance and develop your capital by having a diversified portfolio. The latter manages a professional accustomed to asset management, making it possible to get better results in the long run at lower costs than direct management of the corresponding securities.

To prepare for retirement or to add to retirement

In the United States in particular, supplementary retirement organizations are scarce, so life insurance is an excellent way to save your entire life (you still have to start as soon as possible ...).

Learn more about retirement in the United States.

To move your assets, without inheritance tax

Life insurance is used first and foremost to protect your loved ones, by providing the possibility of self-insurance in the event of death during the contract period.

Life insurance is an excellent tool for passing your assets because capital is not subject to inheritance relationship rules. If the heirs give up the caliphate because they are heavily indebted, they can still benefit from the capital included in the life insurance contract, if they are appointed as beneficiaries.

Learn more about inheritance in the United States.

Various life insurance policies in the United States

Simply put, there are two categories of life insurance contracts in the United States: those that have a specified number of years, and those that last until the day of death.

Fixed-term life insurance

In this type of insurance contract, no savings are provided. There is also no reward for premiums paid. Thus, the process is very simple. Coverage is determined in advance and the premium is determined for the duration of the contract - specified - .

If you are still alive at the end of the period ... It's too bad for you, you'll lose your premiums. Within this type of contract, there are several categories, "annual duration of renewal", duration of level, and death benefits "... Depending on whether the premiums and benefits are identical or not.

Permanent Life Insurance: Indefinite life insurance

In this type of life insurance, the policy applies from the day you purchase it until the day you die. Here again, there are several types of contracts in particular:

The most classic, full life, allows both savings and protection through "pay out compensation" (the amount paid at the end) is fixed from the start. Be careful, the contract holder does not control how the money is invested. The good news is that interest profits are not taxable for the duration of the contract.

On the other hand, in Universal Life, the scope of protection is flexible, as is the amount of premiums. Like Whole Life, it guarantees lifetime protection and the policyholder can save thanks to the contract savings component.

The life-changing contract, on the other hand, is very flexible because it allows the participant to control the way his savings are invested. On the other hand, the premiums were fixed in this contract.

The complexity and case-by-case aspect of life insurance in the United States means that a professional in this sector is almost necessary to conclude a preventive and fair policy for you and your family.