According to the latest data, there are 373.5 million insurance policies in the US, which is 100 million more than the entire population of the country. This number includes both individual and group insurance, and many Americans have both.
The US life insurance policy with a limited period (Term Insurance) involves insurance for 5, 10, 20 years. The main payment is made in a single amount if an accident occurs to the insured person during the term of the policy. If misfortune does not occur, the policy simply closes (as with auto insurance). This is the simplest and least expensive survivor insurance option. A policy with a limited period can be extended or turned into a whole life policy at the request of the client.
The US whole life insurance (Whole Life) has a wider range of options. This is a lifelong investment, which makes it possible to accumulate funds and receive payments during the life of the insured person. The insurance company regularly accrues dividends on the deposit (from 3 to 5%), to which the depositor has access from the first years of insurance. Dividends are place in a separate account and can be withdrawn if desired. If the depositor does not use this opportunity, the beneficiary indicated by him will receive the full deposit amount after the insured’s passing.
Source: https://businessday.ng/insurance/article/life-insurance-uptake-rises-on-economic-uncertainty/
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