mentioned insurance. Many people know very well about accident insurance and critical illness insurance. They also know that these two insurances are very important. Every family needs to configure them, but they have no concept of life insurance. Some people even think that major illness insurance is life insurance. Today, I will take this opportunity to talk to you about life insurance knowledge points.
1. What is life insurance?
Life insurance is a type of insurance that takes the life and death of a person as the insurance object, and is divided into term life insurance, lifetime life insurance, dual-wide insurance and annuity insurance. Generally speaking, the function of life insurance is mainly to protect the family responsibilities of the family pillars, as well as wealth inheritance and planning.
2. What types of life insurance are divided into
1. Term life insurance:
When taking out insurance, the insured and the insurer will agree on a period. If the insurance occurs within this time, the insurance company will pay a compensation of one according to the contract. If the insured remains alive after the expiration of the insurance term, the insurance contract will naturally terminate, and the insurance company will no longer bear the insurance liability and will no longer refund the insurance premium.
2. Life Insurance:
Life Insurance takes the life of the insured as the insurance period. If the insured dies or is completely disabled, the insurance will be terminated. The insurance company will pay the insured family a comparison of money as agreed in the contract. There is no need to worry about the insured not paying money. The amount of compensation is only a matter of time. In addition to the insurance function, lifetime life insurance also has savings significance. The biggest highlight of insurance with savings is that the policy has cash value. If you cancel the insurance in the middle, you can receive insurance premiums, or you can borrow money from the insurance company within the specified amount when you urgently need money.
From this we can see that lifetime life insurance usually has insurance and saving functions, while term life insurance only has protection function but no saving function.
3. Both insurance:
Within the period agreed in the contract, if the insured dies, the death insurance will be paid. If the insured dies after expiration, the survival insurance will be paid. One thing to note here is that the amount of compensation for both insurance and death insurance is different. If you die, the amount of compensation will be paid according to the premium ratio.
From the perspective of introduction, both insurance is slightly better than term life insurance. At least it can still pay the survival insurance after the expiration, and the premium will be consumed after the expiration, and there will be no compensation.
4. Annuity insurance:
annuity insurance takes the survival of the insured as the payment condition. As long as the insured is alive, you can go to the insurance company to receive a comparison of money every year. In addition, annuity insurance also has functions such as financial management, education and pension.
3. How should you choose life insurance for different groups of people?
1. People with relatively abundant funds
. Under the premise that the coverage amount of the lifetime life insurance is the same, the premium of the lifetime life insurance is higher than that of the term life insurance, but the coverage time of the lifetime life insurance is much longer than that of the term life insurance. As long as you die or get disabled during the validity period of the contract, the insurance will be compensated. If the family has good financial conditions and sufficient funds, you can consider purchasing a lifetime life insurance.
2. People who care about premium refunds
Life insurance has the characteristics of a savings product. The cash value you can get after exiting the insurance in the middle; if you die during the coverage period, the compensation insurance can alleviate the economic pressure of the family. If you are still alive after the coverage period expires, you can still get an insurance premium. If people who care about premium refunds can purchase a lifetime life insurance.
3. People who need asset inheritance
After purchasing lifetime insurance, the insurance will definitely be compensated, so lifetime life insurance also plays a role in the inheritance of wealth. People who need to inherit assets can reasonably transfer assets and avoid taxes by purchasing lifetime life insurance.
or above can choose to purchase lifetime life insurance.
4. People with limited economic conditions
Economic conditions are limited, especially for families with old people and young people, and family economic pillars with heavy pressure on mortgage loans and car loans, term life insurance is the first choice.
For example:
For example, a 30-year-old man has high mortgages, car loans and elderly parents who need support. If he dies or is completely disabled due to an accident or illness, he needs to leave at least 1 million yuan in insurance for his family to protect the normal living expenses of the family. If you are not sure what risks will occur in the future, but hope that when the risks come, insurance can protect the family's daily living expenses. The family will not be hungry. You can consider buying a term life insurance. The premium is not high and will not affect the family's daily expenses.
In addition to the great disasters caused by death to the family, disability will also bring great financial pressure to the family. On the safe side, when the insured chooses life insurance products, it is best to choose life insurance with full disability protection.
4. How to choose the insurance amount?
For ordinary people, choosing term life insurance is enough, because at the age of 60, family income has decreased, family burden has been transferred to the next generation, and mortgage loans have been paid off, so it is not cost-effective to configure lifetime life insurance at this time. As for lifetime life insurance, premiums are more expensive and payment time is longer. It is mainly used by wealthy families to inherit the estate. Ordinary people do not need to purchase expensive lifetime life insurance, so when choosing insurance coverage, you should understand the principles of life insurance allocation.
calculation formula for life insurance coverage = living expenses in the next ten years + mortgage balance - current assets
1. A rough estimate of your family's expenditure in the next ten years
includes both one month's living expenses (water and electricity bills, gas bills, property expenses, etc.), as well as other necessary living expenses for children to go to school, extracurricular interest classes, and support the elderly.
2. A rough estimate of how much your liabilities are
In contemporary society, large-scale liabilities are generally mostly mortgages and car loans. These are generally large liabilities. The general calculation formula is: mortgage + car loan + other loans
3. Current assets refer to assets that can be quickly or in the short term, such as stocks, funds, etc.
Here I will talk about it. Before choosing the life insurance coverage, you must be clear about the purpose of purchasing insurance, what are the family’s economic conditions, what major losses will be brought to the family after the family’s economic pillar falls, and which insurance type will be less stressful at this stage. After thinking about these questions clearly, you will be clearer in your heart.
at the end
read today's article, have you gained a deeper understanding of life insurance? I hope this article of the editor will be useful to you. If you like it, don’t forget to forward it to your relatives and friends around you.
This article is original by Duobaoyu. Please keep the original link when reprinting: https://www.dby.cn/
