The insurance savvy Indian immigrant and an acute sense of covering risks

Of all the big corporate sectors that dominate the lives of individuals in the US, it is the insurance industry that stands out. Premium and coverage are the buzzwords that keep life abroad kicking and thriving sans worry. However, the price for handling risk is often overwhelming. Even if unemployed, one cannot afford to miss getting insurance coverage on health or property.

In this environment, tuning to their automatic impulse has made Indian immigrants insurance savvy. This expense is accepted as a necessity to lead a worry-free life. Signing cheques and authorising online premium payments is a compulsory routine tocover their daily life abroad. Between 10 and 20 per cent of the income earned is shelled out to pay premium of different kinds of insurance depending on the individual’s risk appetite.

In most cases, these investments never lead one to enjoy any benefit; of course you don’t want the taste of bad experience you tried to avert. In most cases, then it ends up as dead investment. What is interesting is the large amount of dollars spent on premiums never gets noticed until summed up andseen as a whole, paid for many years with no claims. Let’s unveil the list.

A major chunk goes to medical insurance. On landing or even while purchasing tickets to the US, one starts with the purchase of medical insurance. Without the insurance card on hand, it is not ‘wise’ to fall sick. A physician’s calls to make an appointment are lengthier the first time. It is not a simple conversation that goes, “Hi I am sick, what time can I see the doctor?” The staff on the other side would want more details on your insurance to check if you are eligible for coverage under their facility. The high premium plans with good coverage ensure a wider network of doctors.

Depending on the size of the family and the health history, the insurance premium is released. One has to sign for general medical plans as well as specialised plans such as dental and ophthalmology coverage. If one owns pets, separate insurance to cover their health is essential.

Holding the card does not mean you walk in and out without making payments. No matter the amount of premium paid, depending on the deductible clause, the first few bills from the doctor have to be self-paid, not to mention the co-pay money as well.

The next important one is auto insurance. This is mandatory and holding one is a legal necessity while you drive on the road. Every car owner needs to be covered individually. The premium always shoots up on accidents and receiving traffic tickets. It is high for young drivers. If there are teenage drivers in the family, auto insurance bills prove to be a hefty one. Added to it is the umbrella insurance premium aimed to protect your assets from being attached due to any accident claim. There is also an under insured policy for protection when the other person is not sufficiently insured to cover your loss.

Owning a home is most pleasurable, but one notices the barrage of mails from all kinds of insurance providers cluttering the mail box. A home owner never realises how much expense is being accounted for as insurance premium to cover the repairs of the utilities. The list comprises home insurance covering natural calamities, theft insurance covering valuables, insurance for individual utilities such as water lines, electricity repairs, sewage line repairs, plumbing, etc. Moreover, there are separate policies to cover individual appliances, such as air-conditioner, heater system, refrigerator, washing machine, dishwasher, microwave, and so on. These are essential equipment and when they undergo repairs, they hit the monthly budget. So, not many people think twice before signing these insurance contracts.

The insurance market has limited players, operating under an oligopoly structure. Taking the policy is the easiest thing; all you need to do is make a call, share the basic information and requirement. Presto, the standard policy document, is sent by mail and the process is completed on acceptance. However hard you drill the associate, the fine print of coverage is clear only at the time of availing of benefits and sometimes it may come as a surprise.

There is more in the list of insurance premium paid immigrant population. On buying the latest phone by paying hefty dollars, one would want to add the little extra as insurance on it. For any electronic purchase the sellers lure the people by warning them about the huge cost of repairs. So, however big or small the digital gadget is, one ensures it is insured. While travelling, our luggage is insured; sending valuables by post, the parcel is covered. There is an insurance premium to cover the legal expenses in case of future litigation.

While this list seems exhaustive, it contrasts the Indian experience by missing out on the most important premium – ‘covering their own life’. Initially, immigrants on H1 visa count their years of stay in the US. So they make every effort to ensure the short-term life standards are maintained risk-free. Unlike health insurance, the life insurance premium does not attract tax breaks.

Some employers do offer minimum life coverage. Usually, such benefits are insufficient for the next of kin to carry on with their lives when the income of the earning member is lost forever. No corporate is mandated to offer life policy to its employees. Ironically, the individuals with a long list of premiums for all material things do not feel obligated either. Not a clever thinking, but this seems to be the immigrant behaviour.

Nevertheless, Indian immigrants are pumping more money into the USeconomy through the component of insurance premium.