Enjoying the advanced U.S. medical insurance system is a primary goal for many who immigrate to the United States. After investing and immigrating to the U.S., understanding American insurance becomes essential knowledge for new immigrants. Automobile, homeowners, health, life, and commercial insurance are the five most common and closely related types of insurance in daily life. Here is a detailed explanation of these essential insurance types for U.S. immigrants:
Homeowners Insurance
This is the most closely related insurance to daily life, and those who rent apartments can also purchase it. The most relevant type for the average person is Homeowners Insurance; if you have a property for rent, you should purchase Tenant Insurance (Fire Policy). The coverage of a Homeowners Policy is quite extensive. In addition to comprehensive coverage for the house itself, it also includes liability coverage for accidents caused by daily life. Therefore, not only do homeowners need this insurance, but those who rent apartments can also join in purchasing it.
Insurance items include:
☆ Damage caused by fire
☆ Damage caused by theft
☆ Damage caused by lightning strikes
☆ Damage caused by vehicles crashing into the property or falling aircraft
☆ Damage caused by falling objects
☆ Damage caused by windstorms
☆ Damage caused by vandalism or riots
☆ Damage caused by plumbing issues
☆ Damage from theft of property inside a vehicle
☆ Damage to property carried while traveling
Except for accidents caused by floods, earthquakes, and tsunamis, almost all other disaster-related damages are covered by this insurance. For compensation amounts, cash is limited to $100, securities to $500, and jewelry and watches to $500. Valuables such as artwork and fur products worth more than $500 must be registered separately as property insurance and require additional premiums.
Health and Medical Insurance
In the United States, the cost of seeing a doctor or being hospitalized is very high. Without insurance, a single illness could wipe out a lifetime of savings. Most American companies provide health insurance as a benefit, and because it is a group policy, the premiums are very low. Some companies cover the entire premium, so employees do not have to pay. However, since insurance content varies by provider, you should check whether the company's policy covers childbirth and dental treatment. Those without company insurance should try to purchase general family health insurance, especially families with many children, as they have a higher chance of visiting the hospital; not having insurance is equivalent to wasting your hard-earned money. U.S. health insurance is further divided into three categories: medical insurance, dental insurance, and income protection insurance.
Dental Insurance
Dental treatment costs are usually not included in medical insurance, so those with dental issues should purchase this insurance separately.
Automobile Insurance
Automobile insurance in the United States is not mandatory; each state has different regulations. If you need to borrow money from a bank or a loan company when buying a car, purchasing insurance is a prerequisite for the loan, in which case you must purchase full coverage. Worldway Group experts remind you that if you are not borrowing from a bank, you have the right to choose between full coverage or liability-only insurance.
General full coverage for automobiles includes the following six main items:
1 Bodily Injury: Compensation for bodily injury caused to others
2 Property Damage: Compensation for property damage caused to others
3 Medical Payments: Payment of medical expenses when you or others are injured
4 Uninsured or Underinsured: Compensation for losses when the other party in an accident has no insurance or insufficient insurance coverage
5 Collision Deductible: Compensation for repair costs for your own vehicle due to collisions
6 Comprehensive: Comprehensive insurance
Income Protection Insurance
This insurance protects the policyholder if they become disabled due to illness or accidental injury and are unable to work. For a period of time (usually six months), the insurance company will compensate a certain amount of money per month (usually 50% to 60% of income). The premium for this insurance varies depending on the risk level of the industry.
Life Insurance
In the United States, life insurance has become a system for people to protect their own and their family's lives. From the president to the average citizen, people use bank money while alive and insurance company money after death. U.S. life insurance is generally divided into two categories: whole life insurance and term life insurance:
Whole Life Insurance
This is what is generally known as savings life insurance. The policyholder pays a certain premium monthly according to the insured amount. If the policyholder unfortunately dies before the insurance expires, the insurance company will compensate the beneficiary according to the insured amount. If the policyholder is still alive after the expiration, they can receive the accumulated dividends and cash value in installments or in a lump sum, which can be used for retirement or as children's education expenses.
Term Life Insurance
This is what is generally known as short-term insurance, usually divided into one-year, five-year, and ten-year terms depending on the duration of the insurance. The policyholder pays a certain premium within a certain period. If the policyholder dies within the period, the insurance company will compensate the beneficiary according to the insured amount. After the expiration, it automatically becomes invalid, and there is no interest, dividends, or cash value to be withdrawn. The premiums for this insurance are relatively cheap, but the premiums increase with each term.
Commercial Insurance
To bear the losses of commercial litigation, companies purchase commercial insurance, which is generally divided into the following four items:
1. Property
2. Workers' Compensation
3. Liability Compensation
4. Commercial Automobile
Property refers to compensation for damage to company property caused by natural disasters such as floods or theft. The content is roughly the same as homeowners insurance;
Workers' Compensation insurance is mandatory. If you hire employees, you must purchase this insurance. In the event that an employee is injured at work, the insurance company is responsible for compensating the employee's losses;
Liability compensation is the liability insurance that everyone is most concerned about. In recent years, the number of cases of lawsuits filed by the public against corporate groups in the United States has surged. A representative case is the verdict on the Pinto model car manufactured by the Ford Motor Company. Because the fuel tank of this car model had design flaws, it led to the death of passengers in accidents. The U.S. court's verdict ordered Ford to pay a compensation of $3.5 million. Worldway immigration experts kindly remind you that, generally speaking, the U.S. government has very strict requirements for products, so product liability insurance is highly valued in the United States.
As a leading institution in the immigration industry with 18 years of experience, Worldway Immigration Group has a comprehensive landing and settlement customer service team. When clients first arrive in the United States, the Worldway Customer Service Center will provide comprehensive landing and settlement assistance services, including assisting in arranging airport pick-up for the first entry; assisting in handling bank account opening procedures; assisting in applying for a Social Security card; assisting in booking hotels; assisting in booking flight tickets to the U.S.; assisting in contacting driving schools and introducing driver's license test information; assisting in contacting moving services; assisting in contacting real estate agents, and assisting in handling matters related to renting or buying a house, etc.
Worldway will also regularly provide high-quality services to our vast number of long-term clients. According to the needs of our clients, we will also regularly hold various types of thematic seminars on U.S. real estate, education, life, financial investment, medical insurance, financial planning, social welfare, etc. Worldway will escort you on your immigration journey. Consultation Hotline: 400-138-2929
Disclaimer: Some of the material in this article is from the internet, and the copyright belongs to the original author. The information or views in this article are for reference only. If there are any copyright issues, please contact the original author and us.