How do insurance companies work in America

Insurance is a legal agreement between two parties i.e. insurance company (insurer) and individual (insured). In this, the insurance company promises to reimburse the loss of the insured in case of an insured event. Contingency is the event that causes the loss. This can be the death of the policyholder or damage/destruction of property. It is called contingency because there is uncertainty about the occurrence of the event. In exchange for the insurer’s commitment, the insured pays a premium.

 How does insurance work

The insurer and the insured enter into a statutory insurance contract, called an insurance policy. An insurance policy describes the terms under which the insurance company will pay the sum insured to the insured or the trustee. Insurance is a way to protect yourself and your family from financial losses. Generally, the premium is much lower in terms of money paid for comprehensive insurance coverage. The insurance company takes the risk of offering high coverage at low premiums because very few policyholders actually make insurance claims. This allows you to take out a large amount of insurance at low cost. Any person or company can apply for insurance from an insurance company, but the decision to purchase insurance is at the discretion of the insurance company. The insurance company reviews the claim application to make a decision. In general, insurance companies refuse to provide insurance to high-risk applicants.

Life insurance

As the name suggests, life insurance is insurance for your life. You take out life insurance to ensure that your near and dear ones are financially secure in the event of an early death. Life insurance is especially important if you are the only earning member of your family or if your family relies heavily on your income. With a life insurance policy, the surviving relatives of the policyholder are financially compensated in the event of death during the term of the insurance policy.

Car insurance

Auto insurance is an important policy for every car owner in today’s world. This insurance protects you against unwanted incidents such as accidents. Some policies also cover damage to your car during natural disasters such as floods or earthquakes. It also covers third party liability when you have to pay damages to other vehicle owners.

Education insurance

Child care insurance is similar to a life insurance policy that is specifically designed as a savings tool. Education insurance can be a good way to get a lump sum payment when your child reaches school age and enrolls in college (18 and older). This fund can then be used to pay for your child’s higher education costs. Under this insurance, the child is the recipient of the insured life or money, while the parent/legal guardian is the owner of the policy.

How does health insurance work in the United States

Las Vegas, New York, Miami, Los Angeles… With your ESTA you have the possibility to travel to the US for up to 90 days. However, without purchasing health insurance, world travel life can quickly turn into a living nightmare. Health expenditure in Uncle Sam’s country is among the highest in the world. It is therefore highly recommended that you take out health insurance, even if you are going on holiday for a very short period of time or for a simple business trip.

Discover in this article how health insurance works to move to the United States with peace of mind.

Health insurance in the United States: a complicated system
While the United States is a dream, its health care system is priceless. Medical costs account for more than 16% of monthly family expenses and are among the leading causes of debt.

For this reason, it is a recommended formality to purchase health insurance before moving to the United States. In case of an unforeseen event, the costs (cost of hospitalization, medical repatriation, etc.) can ruin you. For example, a scanner can cost you between $4,000 and $5,000, a 3-hour emergency hospital stay can cost you between $9,000 and $10,000, and expedited dental care can cost $500 to $500. What else can happen. Fortunately, health insurance exists to cover the sometimes exorbitant medical expenses. However, finding your way between all the travel insurance policies offered is complicated.

Public money

First, it should be noted that in the United States we are a long way from French Social Security. Social coverage is really very basic. Public funding still exists, such as Medicaid and Medicare. These are reserved for US citizens according to very specific criteria. In addition, Medicare is reserved for people over age 65 and people with certain disabilities. Medicaid is reserved for very low-income US citizens.

The “Obamacare” bill was passed in 2010 before being passed by US President Barack Obama in 2014. The purpose of this law is to guarantee health insurance to all U.S. citizens and permanent residents by providing assistance to less affluent families. However, the law only encourages Americans to purchase private insurance.

private financing

There are many private insurance policies, which are divided into two main insurance categories: health maintenance organizations (HMOs) and non-life insurance (II).

An HMO is a system that brings together an organization, an insurance company, and a healthcare system under one umbrella. II are undoubtedly the most expensive. They are based on a system of provident funds similar to the health insurance fund. In other words, the insured contributes according to the risks he wants to cover. The older they are, the higher the premium amount.

international health insurance

Many insurance companies provide you with international insurance (Allianz, AXA…). They are generally suitable for living abroad. Most offer repatriation assistance, which covers you in the event of an emergency repatriation (e.g. the death of a loved one). Be careful not to confuse this with European insurance, which allows you to pay for medical expenses upon presentation of a European health insurance card. This insurance is of course only available if you live in the European Union. It is also important to be careful before purchasing travel insurance. Many of them also insure you against hospital costs, although some are scams. It is therefore necessary to read the insurance contract carefully before concluding it.

Other insurance
If you are going to cross the Atlantic to work or study, keep in mind that there are also insurance policies that provide medical assistance: student insurance, expatriate insurance, etc. It is also important to note that it is compatible with the Obamacare system, because if you don’t, you might be too late.

United States: which health insurance to choose
You will understand that the options for your health insurance are enormous, whether you are a casual traveler, an intern or a foreign student. So which one to choose?