The total amount that the Americans are insured for exceeds $13 trillion. The average amount that an American family is insured for is $165,800.
What is life insurance?
There are two main types of policies in America. The first one covers long-term insurance for 10, 20, 30 years. This insurance policy is very popular among couples.
Most people think that this product is good for older people who are likely to pass soon. In fact, life insurance is very important in middle age especially for parents. If, in a family father works and mother takes care of children at home, in case of accident, family members will be doomed to poverty. Therefore, life insurance is very important for replacing the income of one of the parents.
Insurance is more expensive for smokers
For a wife and husband who are at the age of 35, a policy with the $500 thousand coverage for 30 years will cost from 50 to 80 dollars a month, depending on their health condition. Usually those who wish to conclude an insurance agreement must undergo a medical examination, which is paid for by LIC. Based on medical verdict future clients are assigned with the rating according to which the tariff is determined. There is standard rating (in most cases); a smoker rating is usually 2-3 times more expensive than a standard one. And sometimes depending on the insurance company, customers are awarded with rating that gives a discount for good physical shape and excellent health.
Savings policy
The second type of insurance in the USA is various types of cumulative insurance policies, they are much more expensive. In fact, the insurance industry has figured out how to make a boring and intimidating product attractive. Savings policies such as Universal Life, Index Universal Life, Variable Universal life, and Flexible Universal Life cost three to four times more than long-term ones.
Whole Life is not as flexible as Universal Life, but it allows the client to use annual dividends on insurance policy at his discretion. Due to dividends it will be possible to increase the amount of insurance coverage or reduce future payments.
Source: https://www.usnews.com/life-insurance/whole-life-insurance
Photos are from open sources.
