Some are convinced that life insurance is a product designed for affluent people, but the reality is: only life insurance can guarantee a stable financial situation for any family during a storm in the stock market and the global pandemic.
American insurance conglomerates control about 50% of the insurance market of developed countries. About two thousand LICs operate in the USA. The assets of one company in average amount to $950 million, and 12 structures account for $60 billion.
There are various types of personal insurance in the USA:
Conventional life insurance provides for payment of insurance contribution for the life of the insured person;
Life insurance limited in term provides for payment of insurance premium for a certain period in installments or in a lump sum of the entire necessary amount, after which the insurance policy is considered paid. The amount specified in the insurance contract is paid once in case of death the insured person;
Insurance providing for the entire insurance amount payment upon the expiration of term specified in the policy or in the event of the insured person’s decease;
Contingent insurance for a certain short period of time (usually several years); a typical case of such insurance is life insurance of a debtor for the loan duration;
The most popular type of insurance is universal insurance, which main point is the person insured gets to decide the amount of annual payments.
Cost
The spread in the value of life of Americans is really large and, as a rule, begins from $500 thousand reaching tens of millions if a person has a high income. Methodology for calculating the price of “life and death” is currently complex and takes into account such factors as age, education, work and annual income.
Many Americans living in the southern states that often fall under the blows of the elements decide to buy life insurance against accidents and natural disasters. Otherwise, no one will pay relatives for the lost lives of their loved ones. According to estimations, such a policy will cost from $3 to $7 thousand per year for a US resident at the age of 20.
Photos are from open sources.
