Life and health policies

Life and health policies are contract types where insurers provide financial protection for death (life insurance) or medical expenses (health insurance). Life insurance policies, such as term life and whole life, pay beneficiaries a lump sum when the insured dies.

Health insurance policies, including major medical plans like PPOs and HMOs, cover costs for doctor visits, hospital stays, and prescription drugs. In 2021, 52% of Americans had employer-sponsored health coverage, according to the U.S.

Census Bureau, as reported by YourInsurance.info. Term life policies often cost less than permanent life but provide coverage for set periods (e.g. 10 or 20 years).

The average annual premium for a healthy 35-year-old buying $500,000 of 20-year term life in 2023 was about $350, per Policygenius data. Health policy deductibles in the U.S.

Averaged $1,763 for single coverage in 2023 (KFF). Death benefits from life insurance are usually tax-free to beneficiaries under IRS rules.

Many insurers offer riders with life and health policies–like accidental death benefits or critical illness–that add extra protection; e.g. critical illness riders paid over $5 billion in claims globally in 2022 (Swiss Re). Insureds must pay regular premiums to keep both policy types active.

Waiting periods can apply: typical group health policies have 30-90 day waits; most new life policies have suicide clauses excluding payouts within first two years. Insurance companies require underwriting for these policies–such as medical exams–for accurate risk assessment.