Life insurance is one of the most discussed topics nowadays. Many people and many companies are talking about this. We will talk in detail about What is Life insurance and the top insurance companies in the USA.
The U.S life insurance industry comprises a lot of companies with impressive records of innovation. Life insurance companies are a major part of the U.S capital market. They invest in all types of bonds, loans, mortgages and corporate equities. Insurance operations have been subject to tight restrictions in most developed countries. This sector has been monopolized by state-owned companies, competition and innovation stifled by control on premiums and products and accumulated funds have been invested in low-yielding government securities. In recent years many developing countries are upgrading their pension and insurance systems in an attempt to mobilize long-term financial resources, promote capital markets and encourage private sectors in development.
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What is Life insurance and the top insurance companies in the USA?
What is Life Insurance?
Life insurance deals with the health and life of an insured person. The insured person gets financial support in form of insurance protection from his respective company in return for a premium paid in the case of the death of an insured person.
What is the meaning of a life insurance policy?
It is an agreement between an insured person and an insurance company. It provides financial support under which the insurance company agrees to pay the amount as the premium to the insured person in the case of any unfortunate death during the tenure of the life insurance plan. But before that, the insured person has to pay some amount as a premium fee on either a regular basis or a single premium.
Life insurance attracts insurance premiums on a larger scale. Insurance is made for the betterment of the life of an individual to enhance his living style.
What are the types of Life insurance?
There are many types of life insurance and some of them are the following:
- Endowment plan
- Money-Back policy
- Pension Plan
- Term Insurance
- ULIP Plan
- Group Plan
1. Endowment plan
An endowment plan is a participating non-linked plan which offers an attractive combination of protection and maturity benefits. In case of the uncertain death of an insured person, LIC provides financial protection for the insured family. In this policy declare a bonus every year. The bonus declared is not payable immediately. Bonus is payable only when the policy matures or in case the policyholder dies.
2. Money-back policy
This is the most famous insurance policy. It provides life coverage during the period of policy and the maturity benefits are paid in instalments by way of survival benefits in regular intervals, instead of getting the lump sum amount at the end of the term. It is an endowment plan with the benefit of liquidity.
In this policy, the bonus declares every year but it is not payable immediately. Bonus is payable only when the policy matures or the policyholder dies.
3. Pension plan
This is the most suited plan for senior citizens and for those who are planning for a secure future. This pension plan helps the individual to save money for the future so that life can be secured after retirement.
4. Term insurance
Term insurance is a protection and traditional plan which offers financial protection to the insured's family in case of unfortunate demise on low investment. It is a pure life cover policy. In this policy against payment of regular premium, the insurer agrees to pay your beneficiaries the sum assured in the event of premature death during the policy term.
5. ULIP plan
Unit Linked Insurance Plan (ULIP) is a combination of insurance and investment. In ULIP plans returns are depends on Investment performance. This plan is the most expensive than the Term and Endowment plan. A part of the premium paid is assigned towards the life cover, while the remaining portion is invested in various equity and debt schemes.
6. Group plan
The group plan is the protection of the groups of people. This scheme is ideal for employee associations and societies. It allows you to enjoy group benefits at very low cost.
What are the benefits of life insurance?
Life Insurance is a product which secures the dependents in case the Insured person passes away or dies:
Financial security for family
In case of your sudden demise, due to any reason*, your family receives the sum assured(the amount of Life insurance you take) for continuing to survive the expenses. It provides financial security in the form of a hefty lump sum amount to sustain the lifestyle/expenses without disruption and gives them time to figure out a way to generate regular cashflows for future needs if any.
Stress-free life
The insured personnel feels less to worry for their dependants as they know that in any unforeseen scenario there is a backup for their family.
Terminal illness diagnosis
Most of the policies today cover this, in case you are diagnosed with any of the listed terminal illnesses in your policy, around 50% of your Sum assured is provided to you to get it treated.
Return of premium
You will get a return of your premium when your policy will get expire. For example, if you take the policy of 70 years of your age. Then your policy will expire when you reach 70 in that case you will get your return.
Riders
There are many riders to add further protection to your life, basic hospitalisation, additional accidental cover, disability cover etc.
Overall, If you are a sole bread owner and or you have many dependants it is advisable to take Life Insurance and that too at an early age as the premium remains to be lower.
What should I consider when choosing a life insurance company?
It's pretty simple. Get one that is A- to A++ rated. Any of those are solid.
After that the next question should be, all things being equal between the companies, how do you get the best price?
1) Rate depends on how long you insure. Decide on the term (length of coverage). It should be long enough to see your kids grow through college (20 - 30 years, which is typical).
2) Rate depends on how much you insure for. Determine the amount of coverage by using an online insurance needs calculator. There is one that covers all the bases and is easy to use at the QualityTermLife website. Get what you need and no more.
Once you've decided on terms and coverage...
3) Rate depends on insurer pricing. Be sure to compare shops! There is a big difference between costs from insurer to insurer. Even a small amount can really add up over 20 years. Visit a site where you can get term life insurance quotes from as many top insurance companies as possible.
Top insurance companies in the USA
There are a lot of insurance companies in the USA but we will tell you the top 10 insurance companies
- MetLife Inc.
- Equitable holdings
- Prudential Financial Inc.
- New York Life Insurance Group
- Massachusetts Mutual Life Insurance Co.
- Principal Financial Group Inc.
- Lincoln National Corp.
- Western and Southern Financial Group
- Transamerica
- American International Group(AIG)
Conclusion
We have discussed almost all the details and you will get an idea about the best insurance policy from the best company. You should avail that for your safety and a bright future for yourself and your family.
