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Insurance in the USA
Today the number of insurance companies and services provided by them in the USA is simply huge, only those firms, which capital treat the large
exceeds billion. Here small list of the largest companies.
Prudential Ins. Co. of America
Equitable Life Assurance Soc. US
Teachers Ins.& Annuity Assoc. America
Metropolitan Life Ins. Co.
Aetna Life Ins. Co.
New York Life Ins. Co.
John Hancock Mutural Life Ins. Co.
Northwestern Mutural Life Ins. Co.
To the person who has just arrived to the country, it will be to be mastered with it first not so simply. Even division on mandatory (such as, car insurance) and voluntary insurance rather conditionally.
Try to do without formally absolutely voluntary, for example, health insurance. After all even to the person with the American average prosperity occasionally happens it is simply impossible to pay treatment cost, especially in case of a serious disease.
We will try to understand fundamentals of the American insurance policy, we will talk about main types of insurance.
THREE MAIN TYPES OF THE INSURANCE
Them treat life insurance and health, houses, apartments and movable property, and also car. There are also other very the useful types insurance, but let's begin with these which are most necessary and it is the most full opening an essence of all American system of insurance.
1 . Life insurance and accident and health insurance.
Life insurance is directed on providing to a family the financial support in a case of death of the insured person. Depending on the contract, the insurance company will shall:
- to provide with o a certain level of the income to the remained spouse and/or children
and to other family members.
- to compensate to o taxes and other expenditures connected to distribution
property between successors;
- to pay your last expenditures, such as hospital scores and expenses
on a funeral;
- to pay education of children;
- to extinguish the remained loans on house or apartment acquisition;
- to provide to o a pension fund;
Life insurance, as you can see, isn't reduced to simple payment lump sum to your relatives in case of death, it also aims at family support during rather continuous time.
The contract of life insurance can provide two types of insurance:
term insurance and permanent insurance. Both of them have a large number of options, but the main distinction in between consists in that in case of a temporal insurance the contract is signed on the certain time (year, 5, 10 years, etc.) or before achievement of a certain age (for example, 70 years), and the manual is paid to a family only if the death came during this period; in case of a constant insurance all is enveloped the life period, and the amount of an insurance is paid after death, irrespective of when it came. The contract of temporal insurance can usually be it is continued after its original period, and also it can be and it is replaced with the constant. Consider only that each new extension contracts all will cost dearer, after all than the person becomes higher,
that the probability of occurrence of death is higher.
Selecting the type of life insurance most suitable for, it is necessary to have in to look as well that for young people annual payments to the insurance
to the companies is lower in case of a choice of a temporal insurance; elderly, on the contrary, continuous insurance will cheaper manage.
Now let's stop on some types of a temporal insurance, we will look, than they differ from each other. They can be selected three:
Convertibleterm - a temporal insurance which can pass into a constant.
Usually, to avoid additional physical examination and increases of payments, transition to the constant form it is necessary to realize for a certain period before the expiration of a temporal insurance.
Renewableterm - a renewable temporal insurance. In case of such look insurance after completion of the main period of the contract it can be it is prolonged regardless of a state of health.
Revertibleterm - other option of a renewable insurance; difference from the previous type consists that for restoration of the insurance contract it is necessary to satisfy the certain conditions concerning first of all a status health.
In case of a constant insurance can offer two its main types:
a) Interest Sensitive Whole Life, i.e. insurance, payments on which not are the fixed, and depend on some factors.
b) Traditional Whole Life, or a traditional insurance, in case of which payments and the amount of an insurance remain invariable the entire period of insurance;
Variety of an insurance of the first type, the universal is most popular universal life insurance.
In case of its choice considerably the client himself will control the finance, from certain limits can select the amount of annual payments, even passing some of them in case of need. The company will be to distribute payments on three categories: the first part goes for accumulation the main amount of payment in case of the death, the second - into the special account in bank on which percent are calculated, and the third - on a covering of expenditures
companies. Thus, and value of annual payments, and that amount, which the company shall pay in case of death, depend on value of the banking
percent on deposits (interest rates). Anyway company surely the main will pay the minimum percent on deposits and the minimum amount
payments to successors after a loss occurrence.
All activities of the company are made are public, it annually publishes data on into what accounts and what amounts arrived within a year.
Irrespective of the selected type of life insurance, it isn't necessary to neglect the main recommendations explained below:
1 . Each company is obliged to offer the period of approbation of an insurance ("to free-look period") during which it is possible to refuse the contract without
incurring of any losses. Under laws of the State of New York, such period not there can be less than 10 and more than 30 days (in case of signing of the contract on to mail, without involvement of the agent, this period shall make 30 days).
2 . In case of signing of the contract it is necessary to be convinced that oral promises of the insurance the agent correspond to that is written in the contract. Especially attentively it is necessary to study the contract if the offered conditions look improbably favorable (too-good-to-be-true - is too good to be the truth).
3 . It is better to deal with the company which is licensed in this always staff. Otherwise there can be difficulties in case of permission of the disputable
questions if they arise.
4 . Possibility of a group insurance (group life insurance) is considered.
The price of such insurance usually happens lower, especially if the contract consists the employer for all employees of the enterprise or the organization.
5 . Failure from one insurance contract and its changeover by another (replacement) most often doesn't bring any advantages. It is desirable to try to avoid it, and in any case it is attentive and in details to think over the such step before making it.
6 . It is necessary to store the insurance contract in a reliable place. If client or relatives after death lost it, it is necessary to treat the written request in the American council for life insurance (to American Council of Life Insurance)
7 . Try to avoid frequent payments. One annual payment always it is less, than twelve monthly.
8 . Except one person to whom payments in case of death shall be made (beneficiary), surely makes a reservation in the contract his doubler (contingent, or secodary beneficiary) which shall receive this money in case of sudden death of the first.
9 . The main receiver of the insured sum (beneficiary) shall report insurance company the address and to inform it on all its changes. If it won't make it, after three years all its share departs to the authorities staff and though it has the right to declare afterwards the rights, for this the period to it percent won't be calculated.
10 . It isn't necessary to employ the lawyer directly as soon as there are friction with company. It is possible to cope with the majority of similar problems most.
2 . Homeowners and tenants insurance and personal estate.
This type of insurance, as well as the life insurance described already and health, too isn't mandatory. But, most likely, the client will use it, recognizing that wishes to receive reimbursing in case of loss of the such valuable property.
It is possible to select the following main cases when it is possible to receive reimbursing under contracts of insurance of the dwelling and property:
- the damages caused by natural disasters, such as a fire, storm, hail and others;
- of damage caused to property of other people, put by it on
- negligences physical damage.
It is possible to buy a separate insurance on each of these cases, but hardly it is worth doing it, to use complex insurance, which better envelops all listed above cases. There are different types the complex insurance differing on methods of insurance and methods damage estimates. Each state of the USA has the laws defining the mains the moments of an insurance of real estate, but are some general principles, which we will explain slightly in more detail.
Let's begin with "an assortment minimum" those cases, which shall join in any contract of complex insurance personal and real estate, irrespective of its specific type. In full compliance with three above-mentioned moments, shall be monetary compensating is paid for a real and personal estate (even being during a loss occurrence), provided that it suffered during a fire, a storm, a hail, others spontaneous disaster, except provided below, and also explosion, mass riots, acts of vandalism, it is damaged by the car, airplane or it is stolen. Besides, are compensated the expenditures connected to payment to compensating to the third parties for caused them to health or property damage (for example if the fire from the house was spanned on adjacent). The insurance company shall pay legal service, medical scores and the additional expenditures connected to the temporal stimulated living out of permanent residence.
If the client disturbs that not all possible are listed troubles, and he will want to expand the list of cases covered by an insurance, that won't meet thus any objections on condition of introduction additional payment. For example, can offer an insurance on a case accidents of system of water-supply or heating, electrical wiring damage, falling on the house of the subjects, capable to make corruptings (for example, airplane wreckages, even the spaceship), and also damages under action of gravity of the accumulated snow or ice. If it a little - it is possible to offer most.
But thus there is also a row of cases when the contract of insurance to help not will be able. Practically any insurance company won't offer compensatings for the damage caused by an earthquake, a flood, a break power supplies, war or nuclear catastrophe. If the personal is lost the property used in case of guiding of business operations, this damage too, as a rule, by an insurance doesn't become covered.
Signing the contract of insurance of the house or the apartment, it is necessary to pay attention for the next moments:
- in the insurance how many will manage.
- in restoration of the dwelling destroyed as a result how many will manage natural disaster;
- whether you want to pay more for an insurance and to receive the full or you prefer to spare compensating on payments, but to have only the partial indemnification;
- what types of natural disasters are most probable in your terrain;
The amount on which it is possible to insure the real estate, can to make any part of its real cost. Amount of compensating thus can be defined, proceeding from two different indexes: costs reimbursing (relacement cost) or real cost damaged property (actual cash value). It is in between simplest to understand a difference on specific example.
We will assume, as a result of a flood at your house it is considerably washed away and the base gave, and you should pay 3000 dollars for its repair.
If compensating is calculated the first method (replacemenr cost) the amount payments just also will be made by 3000 dollars, covering an overall cost
repair. But when using the second case into consideration it can be taken wear of the damaged part of your property. If your house is calculated on 30
years from which 15 already passed, its real cost will be twice it is less, i.e. base cost (and, respectively, the compensating amount) it will be defined in 1500 dollars.
Real price of a personal estate determines reimbursing cost in case of the inference of the contract on its insurance. As a rule, insurance the maximum amounts of compensating paid in case of are defined by the companies also to loss of a certain type of personal property.
For example, in New York in case of theft of the insured jewelry and hours won't pay more than 500 dollars. Now we speak only about contracts complex insurance of personal and real estate. Nobody hinders to sign the separate insurance contract if for you are available expensive jewelry.
Take into account and the following practical recommendations:
- your property underwent physical changes, as a result of which it became uninsurable (uninsurable);
- you made the deliberate or careless actions increasing risk losses insured property;
- you don't do the payments provided by the contract;
- deliberate uprating or careless actions was found, losses increasing risk insured property;
- you were condemned for the actions directed on risk of loss the insured property.
In summary we will mark that the companies offering the smallest prices in case of the inference of the insurance contract, not always can offer you
appropriate quality and the range of services also don't differ good reputation.
Don't forget about it, you don't pursue low cost.
3 . Automobile insurance
It is a mandatory type of insurance in the majority staffs of the USA. The uninsured car in them it won't be simple it is registered. Besides, for example, in the State of New York it will be necessary for you to have at all one, and three types of an insurance:
1 . No-faultinsu ranee - for compensating of losses of all persons which were injured in case of accident in which your car which is paid in any participated
case, irrespective of a level of your fault, and also for reimbursing medical expenditures and the income which you lost for a cause of accident.
2 . Laibilityinsurance - for compensating of the damage caused with you to another to people or their property;
3 . Uninsured motorist protection - for compensation of the damage caused to you uninsured driver.
This last look is provided only by laws of the State of New York, minimum the insurance amount on it makes 10 000 dollars. The maximum amount on
to the first look makes 50 000 dollars, minimum on the second - 5 000.
Except these mandatory types of insurance, exists and much the additional. For example, medical insurance in case of accident, irrespective of her responsible, on the amount exceeding minimum, phisical damage coverage, that is insurance of the machine upon any damages, irrespective of their reasons, from theft, action of your insurance can be widespread not only on all territory of the USA, but also to Canada and many other things.
Here we will mark still that we recommend to buy the minimum insurance only if you have a second-hand car which it is easier for you to hand over
on a dump than to pay for repair in case of accident or breakage. In all remaining cases of the minimum insurance it is obviously not enough to reach
acceptable level of financial safety on a case of the unforeseen circumstances.
You need to know the term deductible which means the minimum level of damage in case of which the insurance company starts satisfying conditions
the contract and to compensate your damage. Smaller expenditures, apart from the special case of an insurance of automobile glasses, the firm isn't obliged to compensate. Amount this is defined in case of the inference of the contract, it is less than 100 dollars to be not can. So in case of the accident which consequences managed to you in 99 the dollars, all amount you will pay, and expenditures in 101 dollars will be to cover the company, and in this case it compensates you 1 dollar.
This amount can be unreasonably high and make from 500 to 3000 dollars and even more if you hire the machine. But thus it is possible to arrive and in a different way, for example, to buy so-called Collision Damage Waiver (CDW) - release from a board for damages that will be to cost about 12 dollars a day. It is possible to buy and simply an insurance on appropriate number of Days. Anyway, but without any look insurance simply won't rent the machine to you.
4 . Other types of insurance.
Except sorted above the main types of insurance, without which we not would advise you to manage, there are some more useful types insurance the majority from which arose rather recently. Among them it is possible to select the following:
Insurance on a case of the long medical care (Long Term Care Insurance). Such type of insurance refunds your expenditures on the medical to leaving for a long time. This insurance can include:
- the help connected to health (Health-Related Care), including in itself general leaving, supply, collection of medical information (temperature,
pressure, etc.), and also dietary supervision;
- trustee leaving (Custodial Care), i.e. help in implementation daily home needs, such as clothing, supply, reception drugs, washing, etc.
Depending on terms of the contract such types of the help (together or on individualities) can appear either in hospital, or in special board, or at home. Service can be round-the-clock or only in certain time of day (in the afternoon or at night).
Than you are younger, your annual payments will be that less. Therefore it is better to see to it in advance about this type of service. It must be kept in mind that according to data of the American Ministry of Health probability that during life though.бы once is required to you the long leaving, makes from 20 to 45%, and the cost of such leaving is very high - in New York it makes more than 100 dollars a day, or 40 000 dollars in year.
- the qualified medical care (Skilled Nursing Care), realized by the diplomaed nurse under the direction of doctor. It is the most expensive type of an insurance, and it provides, that qualified help could be given you round the clock;
Medicare Supplement Insurance.
This the type of insurance serves addition to Medicare and covers those expenditures, which aren't included in this governmental program of medical care.
If you use Medicare services, such type of insurance very much it is important for you, as in case of a serious disease the amount of expenditures, not paid by Medicare, it can be very high. It must be kept in mind that Medicare any additional insurance doesn't provide the absolute coverings of possible medical expenditures. There are, however, certain the minimum standards of a covering of expenditures which are revised by organs controls of staffs every year.
"Umbrella insurance" (umbrella insurance). This type of an insurance serves for coverings of the expenditures exceeding the amount, determined by a normal insurance on compensation of the damage caused to your dwelling, the car and personal property (and also the damage caused by you to someone else's property).
The umbrella insurance not only raises a ceiling of payments (usually to 500 000 dollars), but also includes some non-material types of damage - for example, damage because of slander. The general insurance exempting from the personal responsibility (comprehensive liability insurance). Such insurance
pays the damages caused by you or members of your family to other persons (if, of course, your actions don't attract criminal liability).
Remember that in case of judicial claims the amount of the claim can be huge, - here no other country will be able to compete to America, therefore not
it is necessary to neglect possibility of protection against a similar serious trouble.
|Category: Insurance history in the different countries of the world | Added by: Chance23 (20.04.2014)