Posted by Ask yourself, why do I need insurance?
At different ages of people, we are faced with different insurance needs.In general, the vast majority of people, at different ages and wealth stages, need life insurance escort.
However, it must not be just because,I heard that "Life Insurance" is a "Good Deal", As a reason for purchase.
Life insurance is a financial product used to provide financial protection for families or individuals.The protection of life insurance includes that it can be used to pay off mortgages, help provide funds for college or higher education, or provide retirement income, or be used as charitable donations, and play an important role in estate planning.
all in all,If there are other people’s lives, rely on our income——For example, children cannot work, no income, and rely on the income and support of their parents; another example, we are the main source of family income and bear the main financial expenditure of the family——Then we should focus on life insurance.
Even if we do not have the above-mentioned practical needs at the moment, we have learned and understood the operating principles of different types of life insurance in the United States, and under the premise of sufficient financial budget, we can still consider ourselves "as soon as possible". Apply for life insurance in advance.
The reason is:"Time" is the most valuable thing in the world, The younger we are and the younger we are, the cheaper our life insurance premiums will be, and the more room we have for the future.
(>>>Recommended reading:What kind of insurance should I buy for the 5 stages of life?Buy the right insurance to solve 80% of the life dilemmas of you and your family)
Decide how much coverage is needed?
Life insurance coverage, Also called the total amount of death claims.In the traditional definition, the sum assured is the total amount that the beneficiary will receive when we die.
With the development of modern cash value life insurance, another meaning of the insured amount is that its size is like the size of a cup. The larger the cup (insured amount), the more premiums that can be deposited.
To help determine the size of the insurance coverage, the American Life Insurance Guide website providesOnline life insurance coverage calculatorFor readers' reference, we can also seek the help of other life insurance coverage calculators.The easiest and most effective way to estimate the insured amount is toMultiply our annual household income by 10.
A more specific and effective way is to assume that the family has passed away unfortunately. At this time, we need to calculate the one-time expenses that need to be paid now and the daily expenses of maintaining the family in the future.The current one-time expenses include the immediate payment of housing loans, school tuition, children’s education funds, etc., and then calculate the sum of the family’s daily expenses every month in the future, and multiply it by 12 months to get the sum of the family’s annual routine expenses.
Taking into account inflation and expected income, we can divide the total annual regular expenditure of the family by 6%-a rough calculation to maintain the sum of the long-term annual regular expenditure of the family under the assumption that the annual income is 6% .This sum can be used as a reference for the insured amount. Its purpose is that if the main source of family income stops due to extreme reasons, other family members will not bear the mental pressure while also experiencing financial constraints.
PlusOne-time expenses that need to be paid right now和Maintain the daily expenses of the family in the futureWith these two figures, we can figure out how much life insurance coverage we need.
Life insurance coverage calculatorIt is usually possible to estimate the approximate amount of insurance required, but in some cases these estimates may not be very accurate.Because what the insurance coverage calculator gives is only a forecast based on a "hypothesis" situation, not a final answer.
Advocating everyone to use this method will bring us many financial benefits.In this process of preparation and calculation, we will learn more and more about the real financial situation of the family, learn how life insurance works, and finally, let us confidently and calmly act like an "expert" and a professional life insurance broker. People communicate and discuss.
(>>>Recommended reading:How to correctly take the first step of insurance and financial management?Detailed explanation and 4 common topics that insurance consultants must discuss）
Find the insurance that suits you
After we have determined the approximate amount of life insurance coverage we need, we can then consider which type of life insurance is suitable for us.
Our choices are mainly in two categories: consumer term life insurance, or lifetime life insurance with cash value.
The former has a single function and low premiums, while the latter is powerful, providing more comprehensive protection while also providing cash value functions.
On the specific question of what type of insurance to choose, we provide "A comparison of American life insurance types, prices, premiums, and advantages and disadvantages"For policyholders to explore and reference.
Find a good insurance company or product
Whether a life insurance contract is good or not is first endorsed by the insurance company that issued the product.Therefore, the financial strength of life insurance companies, the ability to pay, and the history of how to treat consumers are the basic parts that we need to examine before buying.
Through in-depth analysis of the company’s financial report, we can understand the life insurance company’s asset composition, main revenue channels, annual profits, investment preferences, etc., so that we can make a rough judgment about the different business concepts and preferences of different life insurance companies, and whether In line with our own risk tolerance and financial management habits.
The second point is to look for excellent products. The process is very similar to buying a car.
in"What is the insurance policy design proposal?"At the end of the article, we proposed that every life insurance product is like a car of a different brand.Car chassis, engine and appearance, these different performance indicators, are all factors that affect our decision-making.
And the future market trend and social environment,It represents the road on which this car will drive.Although the status of the "road" cannot be determined by us, with the help of professional shopping guides and analysts, we can choose the products we like and need based on our own judgments on the road in the future, combined with our actual situation. .
Some general experience is,forSavings Participating Life Insurance, Participating in Whole Life products of the company’s business nature (Par) is better than Whole Life products not participating in the company’s business (Non-Par ), and forindex life insurance.Investment-linked life insuranceIn other words, analyzing the company's background and comparing the comprehensive performance of products can help us make choices and judgments within a reasonable expectation.
At this stage, we face many market choices.the final decision,The core is determined by "self-value choice."
The key points of the policyholder will eventually be summarized as follows:
- "Do I choose and agree that this product may be more beneficial to me?"
- "Do I choose and agree with the broker’s values and design concept?"
- "Do I choose and agree with the social status and class represented by the main insured groups of this insurance company?"
- "Do I choose and agree with the values and philosophy of this financial insurance company?"
These 4 different levelsValue choiceon.
Learn more before buying
For policyholders who purchase for the first time, there are many new professional terms in the life insurance market in the United States, such as "insurance", "interest calculation", "dividend", "income cap", "beneficiary", etc. Wait, consumers need to understand.
We insist on advocating LBYB-"Learn Before You Buy"The principle of insurGuru©️Life Insurance InstituteIn the column, you can learn about the explanation of these professional terms, and you can also learn more about the knowledge and purchase principles of American life insurance.
Before each insured purchases, through understanding and learning, we can master the basic knowledge and grasp the core points of insurance.And professionalLife insurance brokerIn the process of cooperation and education, we can more efficiently understand the operating logic of American life insurance policy accounts.In the entire insurance process, not only can we get the long-term return of the wealth of "knowledge", but also achieve the goal of truly finding the "optimal" life insurance plan.
