What is life insurance in the USA and how it can improve the situation of an immigrant in America
After moving to the United States, several things immediately appear in the life of an immigrant that you did not have to think about before: personal tax returns, an ubiquitous credit rating and a variety of insurances. It seems that everything and everyone is insured in America. Many immigrants think that this is overkill and are limited to compulsory auto insurance and health insurance (and even then not always).
Well, immigrants from post-Soviet countries are not used to planning their schedule for several months (or even more so years) in advance and investing in something that cannot be held in their hands or used in the near future.
“And they can hardly be blamed for this: constantly bursting banks, fly-by-night insurance companies - all these factors in their homeland do not inspire confidence in the financial system and long-term investments,” she noted. Alla Sidorova, a certified representative of one of the largest insurance companies in the USA New york life.
But as they say, you don't need to go to a strange monastery with your own charter, just as you don't need to apply old fears to a new country. In the United States, the banking and insurance systems are very stable, insurance firms value their reputation and boast centuries in this business.
For example, New york life has been on the market for over 175 years and has earned a reputation in the insurance industry on par with Microsoft and Apple in the technology sector - a giant that certainly will not let you down.
ForumDaily spoke with a certified New York Life representative Alla Sidorova and asked her to explain which insurance migrants should pay attention to and why.
“This is definitely life insurance. This insurance can replace several others at once and has different terms and payment options, which allows everyone to choose what he needs. This is especially true in our a turbulent time, when new viruses appear and houses collapse. In such an unstable period, you need to think about family and loved ones, about their future in the event of such unforeseen circumstances, and life insurance - the best option to protect them”, noted Sidorova.
What is life insurance
According to Alla, there is much more to life insurance than most people see in this concept.
“Many people understand the phrase “life insurance” to mean that insurance payments will be made after their death. There is such an option, it is designed for those who want to protect their family in case of unforeseen circumstances. But such an understanding of the idea of life insurance greatly narrows its scope. This insurance has much more possibilities and you can start receiving payments while in a good mood and health,” explained New York Life representative Alla Sidorova.
Life insurance policies are of two types − lifetime (Whole Life) and for a limited period (Term Insurance).
Life insurance policy in the United States with a limited period (Term Insurance) assumes insurance for 5, 10, 20 years. The main payment is made in a single amount if an accident happens to the insured person during the period of validity of the policy. If misfortune does not occur, then the policy is simply closed (as with auto insurance). This is the simplest and cheapest option for survivor loss insurance. The policy with a limited period can be renewed at the request of the client or turned into a lifetime policy.
Life insurance in the USA (Whole Life) has a wider range of possibilities. This is a lifetime contribution, which makes it possible to accumulate funds and receive payments during the life of the insured person. The insurance company regularly calculates dividends on the deposit (from 3 to 5%), to which the depositor has access from the first years of insurance. Dividends go to a separate account and can be withdrawn if desired. If the depositor does not use this opportunity, then the beneficiary indicated by him will receive the full amount of the deposit after the death of the insured.
В New york life The premium for life insurance is fixed and does not change until the end of the deposit; it is calculated when taking out insurance depending on the client’s health status and other risk factors. Therefore, Alla Sidorova is advised to take out this insurance when you are young and healthy - the premium will be less. The company will fix this amount for you, and any health problems or adventurous lifestyle in the future will not affect the contribution.
“Often our clients buy two insurances at once: Term Insurance - in order to feel safe in case of unforeseen circumstances; and Whole Life - for savings, since the interest rate there is higher than, for example, when opening a savings account at a bank. Whole Life Insurance is great for accumulating additional funds that can be used to pay off mortgage payments, pay for children’s college education, supplement your pension, and so on,” Sidorova said.
These examples show that life insurance in America can be used not only to support relatives after the death of the insured. There are several options for how this insurance can make life much easier for you or your family:
1. Financial protection of the family in case of loss of the breadwinner (financial protection). This is the most obvious use case for such insurance. After the death of the insured, his family begins to receive payments from New York Life, which allows them to cover their expenses. For this purpose, both a life insurance policy with a limited period and a life insurance policy are suitable.
2. Mortgage protection. Life insurance can be used as an additional safety net if you are paying off your mortgage. Having this insurance can help cover your payments in the event of a job loss or other unforeseen circumstances - mortgage payments can be paid off by dividends from the life insurance. And if the mortgage holder dies, their insurance can pay off the loan and help the family keep the home.
3. Opportunity to save for retirement planning or educational planning, as well as provide yourself with a decent old age (Long Term Care). A life insurance policy is suitable for all this. For example, if you opened a policy at the birth of a child and plan to start using dividends after he graduates from school, then by that time such an amount will accumulate there that payments from New york life will cover his college tuition. By the same principle, you can use life insurance to ensure yourself a comfortable life in retirement or to cover the costs of medicine in old age.
How life insurance helps to reduce the tax burden (Tax Treatment)
Insurance payments are not taxed, even if they reach several million dollars. There are also other nuances associated with tax optimization. You can discuss this issue with a professional in more detail: you can contact Alla Sidorova at Facebook, by phone +1 904-258-1662, by e-mail [email protected] or through the form in the article.
“Life insurance in the USA is not a fad or a waste of money, but a real necessity for smart and educated people who love their family and take care of their loved ones. It’s a pity that in post-Soviet countries this market is not so developed and not so safe, but you shouldn’t refuse this opportunity in America just because it was different at home,” summed up New York Life representative Alla Sidorova.
Your question to insurance specialist Alla Sidorova
Material prepared in partnership with
Mobile: + 1 904-258-1662
Email: [email protected]
www: https://www.newyorklife.com/agent/asydorova
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