Some time ago, there was a very popular topic on the Internet: "Is it better to rent or buy a house?"
We can extend this topic: "Is it better to consume insurance or savings insurance?"
The similarity between these two topics is that , short-term payment and long-term payment, long-term low cost and short-term high cost, how do we choose?
If insurance is compared to choosing a house, purchasing consumer insurance is equivalent to "renting a house", while purchasing savings insurance is like "buying a house."
Renting is the norm, but buying a house is the long-term pursuit.
So under what circumstances is it suitable to buy a "house" (savings insurance)?
comes to see the analysis of Dad.
- What is savings insurance
- Under what circumstances is it appropriate to buy savings insurance
- Dad’s summary
What is savings insurance
Savings insurance is a product that combines insurance functions and savings functions, and has the protection of traditional consumer insurance products function, and can obtain savings income.
That is, if nothing happens during the insurance period, the insurance company will return a sum of money to the insurance beneficiary at the agreed time.
Currently common savings insurances include whole life insurance, annuity insurance , endowment insurance, participating insurance , universal insurance, whole life critical illness insurance , etc.
Savings insurance generally has the following characteristics:
- Mandatory:
In order to maintain the validity of the policy, the policy holder needs to pay the insurance premium regularly. If the policy is surrendered midway or the premium is not paid, the principal will be lost and the policy will become invalid.
- Principal retention:
If no insured accident occurs during the guarantee period, the insurance company will return the premium within the agreed time.
- The fee rate is constant:
The payment for each period is fixed to avoid having to pay high premiums when you are old and do not have enough working ability.
- High flexibility in underwriting:
Savings insurance has high flexibility in health underwriting, with higher probability of non-standard underwriting and more diverse methods.
- has cash value:
Therefore, it derives functions such as policy loans, advance premium payment, reduced payment, policy dividends, annuity collection, and survival benefit collection.
Under what circumstances is it suitable to buy savings insurance?
Who is suitable for savings insurance? You can consider it from these perspectives:
1. From a financial management perspective
- Young and middle-aged stage:
Family social responsibilities are important. As the backbone of the family, you need to Important economic leverage to balance.
insurance planning focuses on protection. On the basis of sufficient personal protection, the capital occupation rate is reduced, and the remaining funds are used for investment appreciation.
- Middle-aged and elderly people:
As children become adults, family responsibilities decrease. At this time, savings should be the most important thing and premiums should be saved for retirement.
2. From a health perspective
- Healthy people:
Prefer consumer protection. If you have sufficient budget, you can consider savings insurance.
- People with abnormal health:
People’s health status changes dynamically. For insurances such as critical illness insurance that have high requirements on people’s physical condition, it is recommended to give priority to savings products, which are best if they can be done in one step.
3. From a budget perspective,
- has a limited budget:
is mainly consumer-oriented, and takes advantage of its high leverage to obtain protection.
- Sufficient budget:
Combining consumption and savings, balancing current protection and future income.
Dad summarizes
The significance of insurance lies in risk aversion and wealth inheritance, so Dad recommends planning for future income as early as possible on the premise of sufficient basic protection.
When we ordinary people think about insurance, there are mainly five categories: critical illness insurance, life insurance, medical insurance , accident insurance, and annuity insurance.
Generally, the first four types of insurance deal with basic risk protection.
On the premise of laying a solid foundation, we will then consider issues such as pension, children's education, and wealth inheritance.
Regarding which product to choose, you still have to decide based on your actual situation and your real needs. There are no perfect products, only personalized insurance solutions.
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