LIFE INSURANCE IN THE USA
According to the latest data, 373.5 million insurance policies operate in the USA. But this is 100 million more than the total population of the country. The fact is that this number includes both individual and group insurance, and many Americans have both.
The total amount for which the Americans are insured is 13 trillion. 200 billion dollars. The average amount that an American family is insured for is $ 165,800.
To tell more about life insurance in the USA, I asked the representative of the American Council on life insurance (Herr Peron).
– The younger the person, the easier it is for him to get insurance. But elderly people who fall into the high-risk group can also insure life. True, they will have to pay a lot more. Most often, Americans insure life at about 50 years of age.
– Because at this age they understand that they are not eternal?
– Yes. After all, the main reason for life insurance is that a person wants to provide for his family, to protect it from financial difficulties in the event of an unexpected death of a breadwinner. The heirs – the remaining spouse, children or other relatives – from the money received will be able to continue to pay debts for the house and car, pay taxes for the family business, and continue the business in case of premature death of one of the owners.
– Do parents insure the life of the child from the moment of his birth?
– Yes, sometimes. But we do not recommend doing this, because, I repeat, the main point of life insurance is to protect the family in case of premature death of the breadwinner. A child’s insurance is needed only to pay the costs associated with his possible death.
– Such death occurs most often as a result of an accident. But these are probably different types of insurance – in case of death by age or illness and in case of death as a result of an accident?
– If you are an adult and buy an insurance policy, you can stipulate that if death occurs as a result of an accident, the heirs will receive a larger amount. But at the same time you will have to make higher contributions to your insurance account. For example, if you buy an insurance policy for $ 250 thousand, the amount of contributions is one; if your insurance policy is for $ 500 thousand, the amount of contributions is correspondingly higher. The insurance policy may stipulate that in the event of death, not due to illness or age, but as a result of an accident, the payment to the heirs doubles. If you are relatively young and quite healthy, premature death can occur, most likely, as a result of an accident, rather than an illness.
– What do insurance companies earn?
– Mainly on long-term investment of received money. For example, investing in apartment buildings.
– What types of life insurance are there?
– There is insurance called Whole Life. It has a certain investment element. The owner of the insurance policy can choose where the company should invest its contributions. Thus, interest on capital rises. And the owner of the insurance policy can lend from the company, or rather, from himself, part of the accumulated amount. But he is obliged to return this amount later.
– Can a family insure a terminally ill, doomed relative by hiding information about his illness in order to get insurance soon? Can a person who plans to commit suicide pre-insure his life so as to provide for his family?
– According to the law, there is a two-year trial period. If the insured person commits suicide within these two years, the insurance company has the right to not pay anything to the heirs. But if suicide is committed after these first two years, the heirs must receive the full amount of insurance. Therefore, the insurance company, before concluding a contract, tries to learn as much as possible about a person, including trying to predict the likelihood of his premature death – due to his health condition, because of his tendency to stress, because of his profession. And to predict whether he is inclined to think about suicide.
– Is the amount received by the heirs taxed?
– As a rule, no.
– Is it possible to deduct from the income the amount that a person pays for insurance annually?