Posted by What is meant by "life insurance"?What is the use of this type of insurance in the United States?How should I choose?Today, in the column of the American Life Insurance Guide©️, we will share tips on purchasing American life insurance products to help readers understand the process of insurance decision-making in 3 minutes.
What is life insurance?
Life insurance is a contract document.Specifically, it is a contract document signed by us as the policyholder and the insurance company.
We pay the insurance company, and the insurance company fulfills the various benefits stipulated in the contract.For example, after we die, we pay a large sum of money to our beneficiaries; or some insurance contracts allow us to withdraw cash from the insurance company when we need money, and so on.
Beneficiary of fundsCan spend the money arbitrarily.This usually includes paying home loans, paying daily expenses, utility bills, child day care expenses, and so on.
In the family's financial planning,Life insurance is the basic safety protection layer of every family.When our living conditions change due to age, income, accidents and other factors, our family can still pay for daily expenses under the safety protection net, maintain a decent life, or not get into trouble.
Choose term life insurance or whole life insurance?
There are two types of life insurance in the U.S. market – One is Term, Called in Chinese Term life insurance; The other is to protect life insurance for a lifetime, calledLifetime insurance.
Term life insurance
Term, term life insurance is a purely consumer protection product.OurPremium, Is based on our age, gender, health, we expect to getCoverage,as well as,How long do you want the guarantee (Term)To decide.
You can passAmerican Life Insurance Guide ©️Provide an online price comparison tool for term life insurance to understand the quotations of this type of term life insurance.
Free online price comparison for term life insurance
For traditional term life insurance, if we unfortunately pass away during this period of coverage, the insurance company will pay our designated beneficiaries a sum of insured amount.
For modern "Welfare"For term life insurance, in addition to passing away, ifWe are suffering from major diseases such as cancer, heart disease, or terminal diseases, The insurance company will also pay us a specific claim.
If we are fine during the coverage period, the policy will end when it expires.At this time, we have no protection and need to start a new application.
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Whole life insurance
Whole-life life insurance is not a product name, it is just a concept that includes many different product types.such asSavings Participating Insurance Whole Life.Universal Insurance UL.VUL.Index Insurance IULWait.This type of life insurance is in the field of private wealth management institutions and professional financial planning.One of the main products for high-net-worth groups.
The characteristic of this type of insurance contract is that they are usually designed for life, such as 100, 120, or even 130 years of coverage.As long as the policy is valid during this period, we will surely be paid when we pass away.
The biggest difference between term life insurance and whole life insurance is.Whole life life insurance has a "cash value" account.This means thatWhole life life insurance can be understood as a savings and wealth management product, rather than as a traditional insurance plan.
Because of this, the premiums of whole life insurance are usually more expensive than term life insurance, and there is a certain degree of flexibility in the way of depositing and withdrawing premiums.
To summarize, if youJust married, just had a child, just bought a house with a loanWait, you need to seek a guarantee to manage the financial risks to your spouse and children due to early accidents. For example, term life insurance is a good choice; and if you plan to make long-term financial planning, such asSupplementary retirement income planning.Wealth management and inheritance planning,orEstate planning, Then lifetime life insurance is a better choice.
What is the insurance amount to choose?
ShopTwo key points of consumer life insurance (Term)Yes--How much coverage is needed and how long is the protection needed.
ShopWhole life insurance, It isInvest in a savings product,So need and professionalInsurance Financial AdvisorDiscuss and sign the application.The community consultant of American Life Insurance Guide©️ shared the following column to help you understand the process of insurance financing.
However, the core key part of the two types of insurance is the same, that is, the amount of insurance needs to be determined.The size of the coverage (coverage) determines the price, The larger the insured amount, the more expensive the price, whether it is affordable, has become a question we need to consider.
We often talk about a $500 million policy. This "$500 million" refers to the amount of insurance.To determine the size of the insured amount, the simplest rule can be used-10 to 20 times the annual household income.Can also passSum Insured Calculator, Calculate in detail the sum of all family expenses such as taking care of the family, raising children, repaying mortgages and debts.
When we have determined the size of the insured amount, we can choose different products according to the wealth of the family. In the end, we will face the choice of whether we can afford it. (End of full text)
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