The United States is becoming the world's largest tax haven, and American insurance has also become a guarantee and inheritance product favored by high-end customers in China and the United States. The role of American insurance is self-evident. Tax planning, evasion of CRS, wealth inheritance, life security, stable source of income after retirement, etc.... Not only Americans, but many non-Americans also attach great importance to pension and financial management, and invest a lot of money. Funding is in pensions and insurance.

Generally, everyone likes to buy two types of insurance: American life insurance and American medical insurance. What are these two types of insurance? What is the difference between non-Americans and Americans when they buy these two insurances? Let's see it together!

Types of American life insurance

American life insurance has a long history and a complete range, which can meet the different needs of policyholders according to time or function. The main types are divided into:

1. Traditional Periodic Type (TERM)

Term insurance is a type of life insurance that provides life insurance underwriting within a specific number of years, generally for 10 years, 20 years, or 30 years. Some insurance companies will provide pre-life benefits, and some insurance companies will provide an option to convert the insurance policy into a long-term insurance policy within a specific period of time, and there is no need to make a medical qualification certificate again.

2. Wholelife

The traditional whole life insurance provides guaranteed death claims, guaranteed premiums, and accumulated cash value in accordance with a set specific ratio. Certain policies provide guaranteed dividends that can increase cash value and death claims or reduce premiums.

3. Universal Life Insurance (UL)

It can be accompanied by lifelong insurance, which is characterized by flexible premium payment, and the insurance company provides interest, which has the potential to increase the value of cash. Universal life insurance is divided into three categories:

◎Traditional Guaranteed Universal Life Insurance (GUL)-Interests refer to the interest rates announced by the insurance company

◎Index universal life insurance (IUL)-interest reference index link, such as global index or S&P 500

◎Variable Universal Life Insurance (VUL) – policy performance directly participates in the market

Generally speaking, life insurance does not have any special restrictions on the purchase of Americans, as long as the conditions are met, but for non-Americans, certain conditions need to be checked, and different U.S. insurance companies may have different underwriting conditions.

The most common underwriting conditions for non-Americans to purchase insurance

The insured must have a valid passport and visa to enter the U.S.

Non-Americans must prove that they are connected to the United States now or in the future, such as having real estate, companies, assets, bank accounts in the United States, or applying for a green card, etc.

Apply for the insurance policy to reach a certain amount, and a third-party financial certificate and/or telephone interview is required

Most companies require customers to complete medical examinations and sign contracts in the U.S.

Some insurance companies can allow customers to authorize a US agent (Power of Attorney) to assist in insurance related matters and sign for insurance policies

Each insurance company has different minimum income and minimum net assets requirements for customers

I would like to remind everyone here that various insurance companies in the United States have different underwriting requirements for non-Americans. Please be sure to find a professional broker to give you professional advice when purchasing an insurance policy.

Signing and underwriting process for non-Americans to purchase insurance

Necessary documents: documents, proof of entry into the United States, insurance application, case data

Related procedures: arrange a US medical examination, open a US bank account, confirm the final application form, send the package and sign the bill

Supplementary documents: such as US related explanation letter, Chinese underwriting materials, etc.

After the policy is approved: Please pay with a bank in the U.S.

After some non-Americans go to the United States, they say that medical treatment in the United States is expensive. Do they have to go to a specialist clinic, family doctor, or emergency center? Is it necessary to hesitate to buy medical insurance? And Americans usually regard medical insurance as a necessity, and they must have a sense of prevention!

Types of medical insurance

The most common U.S. medical insurance plans include the following:

1. Managed Care

At present, most private medical insurance companies in the United States belong to managed care.

The feature of this type of insurance is that the insured must have the insurance company's consent before using certain medical services, such as medical examinations, visits to specialists, hospitalization, etc., otherwise the insurance company may refuse to pay for medical expenses.

Currently in the United States, there are four main types of controlled medical insurance companies:

Health Maintenance Organization (HMO);

Preferred Provider Organization (PPO);

Designated medical service organization (Exclusive Provider Organization, EPO);

Point-of-Service (POS)

01

Health Maintenance Organization (HMO)

Health Maintenance Organization (HMO) is the cheapest type of controlled medical insurance plan.

Each HMO has its own network of doctors and hospitals. Members must seek medical treatment at the health care units within the network before the insurance company will reimburse the related expenses, except for emergency cases. If the insured seeks a doctor in a hospital or clinic outside the network designated by HMO, he must pay all expenses at his own expense.

After becoming an HMO member, the insurance company will require the policyholder to designate a doctor as your primary care physician (Primary Care Physician).

PCP doctors are usually family doctors, physicians, or pediatricians. Every time a patient sees a doctor, he must first go to the designated doctor.

02

Preferred Medical Institution Insurance (PPO)

Preferred Provider Organization (PPO) is an optional insurance plan between Fee for Service (Fee for Service) and Health Maintenance Organization (HMO).

PPO insurance companies obtain preferential medical service prices through negotiations with doctors and hospitals and provide them to PPO members.

After participating in PPO insurance, the insurance company provides members with a list of preferred medical institutions (in-network providers).

Members can choose a doctor's clinic from the list. When visiting a medical institution in the network, the insured can get a discounted price from the member, and the insurance company will pay most of the medical expenses.

PPO members can also choose out-of-network providers, but the proportion of personal expenses is relatively high, and the proportion of insurance companies reimbursing medical expenses is correspondingly lower.

03

Designated Medical Service Organization (EPO)

Designated medical service institutions EPO insurance plans usually require members to seek medical treatment within the medical service network designated by the insurance company, and insurance does not reimburse members for medical expenses outside the medical service network.

Some EPO insurances may reimburse emergency treatment in special circumstances based on specific circumstances, but do not guarantee that they will be reimbursed.

After participating in the EPO insurance plan, you generally do not need a designated Primary Care Physician, and you do not need to be referred when you see a specialist.

04

Point of Service Organization (POS)

Point-of-service (POS) is a form of insurance that combines HMO and PPO. It has more selectivity than HMO and is also less expensive than PPO.

POS also has its own healthcare network. Like HMO, POS members need to appoint a Primary Care Physician. When necessary, the health insurance doctor must refer the insured person to a specialist in the network designated by the insurance company to ensure that medical expenses are reduced.

If you seek medical treatment in the POS network, the proportion of medical expenses paid by individuals is relatively low, and insurance companies will bear most of the expenses.

2. Social Medical Insurance

Most insurance companies provide domestic health insurance for U.S. citizens and legal immigrants (foreigners who have a formal job in the U.S. can join the company’s group insurance, which is usually included in this category). Non-U.S. citizens cannot do so while in the U.S. Participate in the public medical insurance of the US government, and cannot purchase local medical insurance.

For short-term foreigners who come to the United States, they can only purchase visitor health insurance provided by a small number of insurance companies. Usually short-term medical insurance can apply for a medical insurance plan that is as short as a few days or as long as several years.

Visitor medical insurance usually reimburses the cost of visiting a doctor for outpatient visits, hospitalization, prescription drugs, laboratory tests, and dental emergencies when emergency diseases occur in the United States. This type of insurance usually also covers the cost of emergency transfer of the patient when the condition requires it, or the cost of transporting the remains of the insured person back to his home country when the insured person dies.

Most visitor medical insurance does not cover pre-existing conditions and related complications, such as high blood pressure, diabetes, etc., or medical expenses related to pregnancy and childbirth.

There is also a social medical insurance called Medicare VS Medicaid (red and blue card, white card). Medicare is the red and blue card that most of our elderly people will hold. It is mainly designed for elderly people over 65 years old and some patients in need (such as disabled patients under 65 years old and those with gradual freezing of any age). Patients with end-stage renal disease or renal disease) services, regardless of their income, patients can get corresponding medical expenses reductions through the plan.

And Medicaid is the white card that we often refer to. It is a program jointly organized by the US federal and state governments for low-income people and the disabled or other medical financial assistance programs. Generally, the patients holding this card vary from state to state, but usually do not need to bear most of the medical expenses, and the amount of self-pay depends on different states.

How to buy medical insurance in the U.S. for different identities

Commercial private medical insurance:

Two situations:

One is: have a green card, but do not have a job, and do not meet the requirements of social insurance (65 years of age or older and tax declaration for 10 years)

(1) It can be purchased separately, and the price varies according to the age and the type of insurance (platinum, gold, silver, copper).

(2) There is no job, but there is other investment income, there is a tax return, and the tax return is relatively small. Between 16,000 and 62,000 US dollars per year, you can apply for Obamacare.

The other is: a green card, 50% paid by the company and the individual, the biggest advantage is:

1. It is possible to have tax filing records (because the company will pay wages);

2. PPO insurance can be purchased.

social medical insurance:

Participation conditions: Participating in Medicare senior medical insurance needs to be 65 years old, and work in the United States and pay taxes for at least ten years. Elderly people who have obtained a green card in the United States can also purchase Medicare insurance at their own expense after immigrating to the United States for five years.

Insurance benefits: Medicare insurance (Medicare) is divided into four categories:

Type A: Hospitalization insurance pays most of the hospitalization expenses for the beneficiaries, but the patient needs to pay part of the expenses by himself. Hospitalization insurance also includes the cost of professional nursing and rehabilitation after the patient is discharged from the hospital;

Type B: Supplementary medical insurance pays 80% of the cost of treatment in a doctor's clinic for the beneficiary;

Type C: Medical insurance preferential plans are some additional medical service insurance designed by government-licensed insurance companies for federal medical insurance beneficiaries;

Type D: The prescription drug plan is a government-subsidized drug welfare plan. The beneficiaries who participate in this plan pay additional insurance premiums and can purchase prescription drugs at a low price.

The A-type hospitalization insurance part of medical care insurance is mandatory, and funds are raised through the government's Medicare insurance tax levied on employee income. Employers and employees are required to pay 1.45% of their salary income respectively, and 2.9% of the total income is used to pay for hospital medical insurance. In this way, when you reach 65 years old, you can get Medicare hospitalization insurance, and you don't need to pay this part of the insurance premium. If low-income seniors cannot afford the out-of-pocket costs of medical insurance, the US government allows them to apply for low-income medical assistance insurance at the same time. Medicaid insurance can help pay for Medicare medical insurance.

The specific underwriting content of each insurance product designed by each insurance company is different. Before buying, you should read the insurance contract carefully to understand the specific scope and proportion of reimbursement for medical services.

Regarding the purchase of life insurance and medical insurance, there are many details and personalized designs. Before purchasing insurance, be sure to find relevant professionals to help you make a comprehensive and comprehensive design. If you have any questions, please leave a message for consultation.

This article is from Sohu, and the copyright belongs to the original author.