For USA insurance specific to life insurance coverage, this is a formal agreement between the insurance company and the policyholder. This agreement outlines what the insurance company agrees to pay to a chosen beneficiary in money at the time the policyholder passes away. Now, depending on the type of USA insurance, sometimes payout to the beneficiary would be made for a situation of critical illness or terminal illness.
For this type of protection, the policyholder makes an agreement with the insurance company that on scheduled dates, a certain amount of money known as the premium would be paid to the insurance company. Typically, USA life insurance companies have a determined amount. For instance, a person could take out a policy for $10,000 or into the millions. However, the more money being purchased that would be paid out at the time of death the more expensive the premium and the more criteria to qualify for the policy.
It is important to understand that the agreement between the company providing USA life insurance and the policyholder is legally binding. This contract outlines any limitations of the policy, the types of events in which money would be paid out, any exclusions, and so on. For instance, most life insurance policies will not paid out money if the policyholder commits suicide, defrauds the insurance company, dies participating in a riot, or gets involved with any type of civil commotion.
When looking at USA life insurance policies, the contracts typically fall into one of two main categories, which include:
1. Protection – These policies are created so a benefit would be paid out for a specific event. Typically, the payout is a lump sum and the most common type of protection life insurance is known as “term life”.
2. Investment – Another type of USA life insurance policy is designed to increase in capital every time the policyholder makes a single premium. The most common types of policies for the investment category include universal, variable, and whole life.
There are so many different USA insurance companies but the following are some of the best known, the companies that have the highest ratings and the happiest policyholders.
• AIG American General
• Allstate Insurance Company
• American Family Company
• Boston Mutual Life Insurance Company
• Colonial Life
• Farmers Insurance
• Global Life and Accident Insurance Company
• Liberty Mutual
• Lincoln Financial Group
• Mass Mutual Financial Group
• Metropolitan Life Insurance Company
• Mutual of Omaha
• Nationwide Insurance
• Principal Financial Group
• Prudential Financial
• Shelter Life Insurance Company
• State Farm Insurance
• The Hartford
• William Penn
Again, these are just a few of the many companies for USA life insurance but these do not include general life and other specific coverage types. You can always conduct research online to find even more companies and then spend time looking at the different policies offered, as well as price so you can find the policy ideal for you.