Why Romanians pay 10 times more for a life insurance policy than Americans

The inefficient medical system, the low living standards and the high death rate make the price of a life insurance policy much higher in Romania than in the US. Life insurance bought by Romanians is much more expensive than those across the Ocean though salaries are lower here. Thus, for a simple 30-year life insurance policy, covering only death risks (sealed by a healthy 30-year old man), for a 100,000-euro insured sum a Romanian pays between 600 and 1,600 euros per year, depending on the company. In the US, instead, the same insurance for the 100,000-dollar sum costs between 139 and 261 dollars. The price difference is huge, but domestic insurers account for it by the higher death and sickness rate than in the US and also most EU countries. Other factors leading to the significantly higher price of insurance are the fact that Romanians do not exercise much and there are a lot of work and road accidents occurring. Insurance prices also depend on the number of policies sealed in the respective country.