Life Insurance industry in USA worth US$ 952B in 2018

reogma|Life Insurance industry in USA worth US$ 952B in 2018

Low interest rate has been the main cause in the decline and negative performance of the life insurance market in USA in recent years

Definition / Scope

Life insurance is a contract made between a life insurance company and the insurance policy holder. Here, the insurance company is known as 'Insurer' and one who buys the policy is called' insured'. It serves as a financial protection for the beneficiary in case of the death of the insured.

The insured pays periodic amounts called premiums for the duration of the policy and upon death, the insurance company pays a specific sum of money to the beneficiary. Payment from the policy can be a lump sum or an annuity (installments paid on regular basis).

It falls under the life & health sector or normally called life sector of the insurance industry in USA. There are three basic forms of Life insurance in US which are:

Term: It provides coverage for limited period of time and is generally preferred by people who have children.

Universal: It is similar to whole life but there is flexibility regarding the premiums and coverage as they can be adjusted and changed according to the requirements of policyholders

Whole life: It's a form of perpetual life insurance, as it provides lifetime coverage and the face amount of the policy is paid to beneficiary upon death of the policy holder. The cash collected as premium can sometimes be withdrawn as well.


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Low interest rate has been the main cause in the decline and negative performance of the life insurance market in USA in recent years Definition / Scope Life insurance is a contract made between a life insurance company and the insurance policy holder. Here, the insurance company is known as […]
reogma|Life Insurance industry in USA worth US$ 952B in 2018reogma|Life Insurance industry in USA worth US$ 952B in 2018

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