Posted by In our traditional concept, buylife insuranceOfmain reasonYes,Provide general income-free death compensation for our loved ones, such as spouses, children, parents, etc. who may depend on us1.
But with the changes in social patterns and lifeInsurance ProductsContinuous evolution,"Providing a financial security for your loved one" is no longer the only reason to buy life insurance.
More and more people choose to buylife insurance, Is out of"Guarantee", "Supplement your post-retirement income", "Tax diversification", "Long-term wealth accumulation", "Inheritance of wealth"And many other reasons.
Therefore, this type of specific insurance, as a financial instrument, can be used in thousands of different demand areas, and later, there will be "Universal insurance".
When we face the professionFinancial Insurance Consultant, Will the process be complicated when preparing to apply for this type of insurance policy product?When contacting and cooperating with insurance consultants, what issues should we discuss and decide?
In this article, the columnist of American Life Insurance Guide Network©️ Heather To "Universal insurance"In the market with the highest market shareIndex Universal Life Insurance(IUL) Give examples, combined with practical experience in serving the community, to help explain,When we first contacted an insurance consultant, there were 4 main issues that needed to be asked and discussed.
1. Choose the amount of death compensation I want
First of all, we need to determine how much of the death benefit I want, that is, the "insurance amount", which is more suitable?Do you want to increase and increase the amount over time?Still flat?
(>>>Recommended reading:How big is my insurance policy?How can I choose?)
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2. Select the premium amount I want to deposit
Under the premise of complying with certain regulations, the premiums we want to deposit in the policy account can be flexibly changed.Invest in lower premiums first, then increase and upgrade later?Or should I choose a higher deposit amount now and slow down in the future?
for example,Same $100 millionThe starting sum assured in US dollars, we can chooseDeposit $8 per year, We can also chooseDeposit $1 per year.Why should we save more and save less? What are the advantages of doing so? Understanding and communicating with professional insurance consultants can help us make decisions that are in our own interests.
(>>>Recommended reading:How much can I put in my policy account?Why put more money?）
3. Choose my premium payment frequency
If we want to deposit annually, there is no problem.It is also possible to deposit twice a year.Quarterly payment is also fine, and monthly payment is also fine.The method of deposit is determined by us when submitting the policy application.
This does not mean that it cannot be changed after the decision is made.After the policy is officially effective, we can also choose to change our premium payment frequency.
4. Choose the value-added method of our policy account
For index-type universal life insurance products issued on the market after 2020, we usually have no less than three ways to obtain interest on policy accounts.
The biggest advancement and advantage is that the way this type of policy account is valued is open and transparent.
Do we want to put all the money in a specific index strategy account?Or use a decentralized and combined approach, and put 4% in each of the 25 different growth strategy accounts?Or choose a conservative growth method, a radical growth method, and 50% for each of the two accounts?As long as we can think of any combination, it can be realized in the product account.
(>>>Recommended reading:How does index insurance IUL save money?How is the money invested in the money distributed? ｜4 Frequently Asked Questions about U.S. Insurance Financial Management)
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Article summary
In this article, I have shared 4 main issues that need to be discussed and decided when facing an insurance consultant for the first time insuring.If you are not sure what you can ask when contacting an insurance consultant, you can also visit "Topics in the Guide to U.S. Life Insurance" with"A must-read trilogy for insurance"To understand the main points of insurance and the misunderstandings that need to be avoided.
In the future after the successful application of the policy, we can withdraw or borrow money based on the terms in the policy contract for any of the following reasons2,including but not limited to:
- 补充Income after retirement
- Angel funding for entrepreneurship
- Pay for college or wedding expenses
- Pay for emergency or business expenses
- The cost of buying a holiday home or travel vacation
- The cost of house renovation
- ...
There are many reasons for using money, but all of these are up to us.Such an insurance policy account is very similar to a bank financial account opened for ourselves. We can deposit, withdraw, and borrow money in it. Therefore, a widely circulated concept is,Using the deposit and withdrawal model of insurance policy accounts can be used to build their own independent "banking system."
In general, applying for and owning a life insurance policy account that can help us cope with various situations on the road of life, if we can, means that we have an additional "tool" and "choice" in our hands. It feels good.
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1. Based on the current federal income tax law.
2. Imagine going from using cash to basic loan and/or policy loan.An insurance policy must meet the IRS requirements of the US Internal Revenue Service in order to become a qualified life insurance contract.The total premiums of the policy cannot exceed the funding limit specified in Article 7702 of the U.S. Internal Revenue Code IRC.Withdrawals made in the first 15 years of the contract period will first be regarded as income and included in the income of the policyholder.If the policy is classified as a revised donation contract (see IRC 7702A), the withdrawal or loan is subject to regular income tax, and if the withdrawal or loan is made before the age of 59 and a half, an additional 10% tax penalty may be imposed .Withdrawing cash will reduce the value of the policy and may reduce the amount of compensation.Whether to provide policy loans and withdrawals depends on a variety of factors, including but not limited to policy terms and conditions, performance, fees and expenses.
