In the United States, the average household income plays a central role in shaping financial planning, budgeting, and long-term protection strategies. As American families navigate rising living costs and financial commitments, it becomes important to understand how the American median household income intersects with term life insurance decisions.
#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply
A household refers to all individuals occupying a housing unit, whether related or not. Household income includes the combined earnings of all residents from wages, salaries, investments, Social Security, and other sources.
American median household income: The middle point of all household incomes, where half earn more and half earn less.
American average household income: The total income of all households divided by the number of households.
Average household income: Used broadly across states and demographics to assess financial well-being.
American Income by household: Data classified by size, number of earners, and region.
Median household incomes: Widely used for policymaking, benefits eligibility, and economic analysis.
Term Plans
When selecting a life insurance plan, especially term insurance, income becomes a key factor. Households should consider how much financial support is needed for dependents in the event of the breadwinner’s death.
Dependents and childcare costs
Monthly mortgage or rent obligations
Education expenses
Health insurance and out-of-pocket medical costs
Household expenses, including utilities and groceries
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Income replacement term insurance provides monthly payouts instead of a lump sum, designed to mimic the regular income lost due to the policyholder’s death. This type of plan helps insure a life and allows family members to maintain their current lifestyle.
Reliable monthly payouts
Supports regular household expenses
Helps manage mortgage, schooling, and essential costs
More manageable for budgeting compared to lump-sum settlements
For families with a mortgage, the loss of the primary earner could result in financial strain. Term insurance for expats can be structured to cover remaining loan balances.
Fixed term aligned with loan duration
Decreasing cover matching mortgage balance
Monthly income benefit supporting EMIs or repayments
| Income by Household Category | Financial Characteristics | Suggested Insurance Strategy |
| High-income households | Higher assets, tax planning needs | Larger cover with estate protection goals |
| Middle-income households | Balancing expenses and savings | Income replacement for dependents |
| Low to moderate income | Limited savings, higher vulnerability | Essential term cover for basic protection |
American average household income and insurance needs vary significantly across states. For example:
California and New York typically have higher American average household income, but also higher living costs.
States like Mississippi or West Virginia have lower American median household incomes, which may affect the affordability and type of term insurance selected.
A well-structured term insurance plan can:
Replace lost income over a defined period
Cover children’s education and family healthcare
Support mortgage and utility payments
Prevent financial disruption for surviving dependents
Many Non-Resident Indians (NRIs) living in the US maintain financial ties with their families in India. A term or life insurance for NRI from India provides an affordable alternative to US-based insurance options.
Premiums for term life insurance for NRI are much lower than international term plans.
You can claim a term insurance GST waiver of 18% on the premiums paid along with the 5% annual discount.
You can clear your medicals via tele or video medicals and have the policy issued from the comfort of your home.
Get pre-approved cover with term insurance for NRIs in USA that provides global coverage.
Receive dedicated claim assistance for your family in the event of your unfortunate demise.
Here is how you can buy term life insurance for NRIs in USA from India via Policybazaar:
Step 1: Visit the term insurance for NRI page of Policybazaar
Step 2: Fill in the required details like name, gender, and contact information
Step 3: Select the right smoking habit, annual income, educational qualifications, and occupation type
Step 4: Choose the best term insurance plan for NRI and proceed to pay
Understanding your household income, whether aligned with the American median household income or the American average household income, is essential in planning for your family's future. Income replacement through term insurance ensures that in the event of the policyholder’s death, the household continues to receive stable financial support.
˜Top 5 plans based on annualized premium for bookings made on https://www.policybazaar.com in the first 6 months of FY 24-25.
Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
+Rs. 487/month (Rs.16/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited
We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale
Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.
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+Rs. 820/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
+Rs. 1,443/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 38 years of age.
˜ Policybazaar Promise reflects the guarantee offered by insurers. Price assurance is based on certifications shared by insurers with us.
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