LIFE INSURANCE IN THE US
Through a life Insurance company, you reach an agreement where you promise to pay regular timely premiums to the insurance company. In return, the company pays a lump sum amount to a nominated beneficiary on the occasion of your death.
The lump-sum amount you get can be used for the sustenance of your remaining family. It can also for paying bills and supporting the families living expenditure.
You might also need to adjust the insurance policy in relation to major events in your life like buying a home, marriage and having a child.
The amount you want to get insured for is virtually limitless. insurance is very useful if you have dependents to provide for or if you want to leave money to charity or help others in need and support.
You should consider and analyze the potential future expenditures that your dependent family might need. Then the life insurance lump sum can be used to fund your children’s college education or retirement.
You can buy insurance through a licensed insurance agent or you may also be part of a group life insurance policy through your employer or the place of your work. If you are a Veteran you can be eligible for the VA’s life insurance.
Broadly speaking there are 2 major types of Life insurance policies:
UNIVERSAL LIFE INSURANCE
These life insurance are considered to be permanent and they last as long as you keep paying the premium. Your dependents or beneficiaries get a payment on your death and this amount also has a saving or investment component to it. What this means is that you can accumulate cash over the policy tenure and can also borrow money from the insurer if you need to.
These life insurance policies continue only until the specified term or period decided previously. Consider if you have this kind of the policy and you die or pass away during the term of the policy. In that case, the insurance company will pay a benefit to your dependents. If you live after the policy is over then the company will not pay any benefit or a refund.
These life insurance policies are comparatively less expensive than Universal life insurance policies. This is so as term life insurance policies cover a definite period of time. While universal life insurance policies are meant to be permanent as the money you pay is partially put away for saving.
Shopping for Life Insurance
Before you go for life insurance it is critical that you research about the company you wish to do your life insurance with. Find about the reputation and financial soundness of the company. Also, ask for references of individuals who have successfully received the insured amount after the maturation of the policy
- You can check if the state insurance department of the USA has to offer any info about the insurance company and its rates
- You should also make sure that the Insurance Company is licensed and is covered by the state’s guaranty fund. This fund pays a claim if the company defaults in paying back your amount insured.
- Check with credit rating agencies about the stability and credibility of the insurance company
- Check for reviews over the internet and check out the company’s complaint records.
- Insist on written policy and if you don’t get that within 60 days then get in touch with the agent or the company.
Find the Best Rates
It is important to compare the rates quoted by different insurance companies. You can also inquire from your agents about discounts. You can enjoy a lower premium if you have some basic safety features in your house. This includes an alarm system, CCTV surveillance, smoke detectors and the like.
You can also save on your car insurance if your car has all the safety features in it. Also, other things that matter are your age, grades, and driving records. You can also be eligible for discounts if you are a member of alumni or civic associations and also if you have multiple policies with the same insurer.
In different states in the US the laws regarding the home, life, auto, and rental insurance differ. But there are also some federal insurance programs which you can inquire about. That is after you have contacted the company, from a state insurance regulator as it is a great source to find more info about a company and also for complaints.
Insurance Policy Information
- In case of any doubts about employer-sponsored insurance, you should contact the employer’s HR and the benefit administer for help and understanding
- You can also get in touch with your state insurance regulator for insurance purchase assistance
- In case you have any complaints first contact the insurance company and if you still do not find a resolution then you can contact the state insurance regulator
- For complaints about employer-sponsored insurance, you can get in touch with your EBSA or the local Benefits Security Administration office.