Posted by Life insurance is the cornerstone of a family's accumulation of wealth. insurGuru™️Insurance CollegeIt has been emphasized that every family needs to properly configure life insurance on the road to wealth accumulation.
Life Insurance, Life Insurance, is the cornerstone of wealth
At the same time, Americanlife insuranceIt is also a Swiss Army Knife that can achieve various "omnipotent" functions, but the diversity of functions will bring confusion to the public and even raise questions.
It is precisely because of the diversified functions of life insurance that there are various rhetoric in the market, causing confusion among policyholders.If we learn about professional knowledge and experience sharing through the right channels,"Learn Before You Buy"Then we can simplify this decision-making process so that we can choose a reasonable plan for ourselves and our family to achieve our goals.
In order to help more Chinese readers fully understand American life insurance, this article will share 7 tips that policyholders must know.
1. Life insurance is divided into two categories: "term type" and "lifetime type".
Term life insurance, Easy to understand and cheap.Consumers purchase 10-year, 20-year, and 30-year term life insurance, and pay a fixed amount of premiums on time in exchange for protection for a specified period of time.Of course we do not want to use this money, but when the policy contract expires, we are already too old at that time. If we choose to renew the insurance at this time, the premium will become high.If the budget is really limited, term life insurance is also a good start.We will recommend you to choose withWelfareTerm life insurance products.
Whole life insurance, Provides the ability to protect life, and also adds a deposit function.This deposit function, usually called the "cash value" of the policy, is used to support the policy to continue to operate after it stops paying premiums.
The earliest "cash value" insurance wasSavings dividend insurance, This product has a function similar to buying bonds or fixed deposit.The investment life insurance that emerged later is more like a mutual fund investment account, with no guarantee and higher growth possibilities.The latest generation of universal insurance is a kind of lifetime insurance that gives a profit limit, plus the guarantee of bottom lock and profit, while providing price advantages and flexible payment.
The development of whole life life insurance has become more and more specialized and subdivided.For high-net-worth individualsEstate planning, And in terms of business planning, lifetime life insurance is the only solution.
Under certain circumstances,Carefully planned and designed lifetime life insurance policies can obtain great tax incentives and maximize the possibility of cash value growth. However, this design scheme must be implemented under the planning and long-term monitoring of professionals, and it is only suitable for some people, and it still relies on many other external factors to work as expected.
2. Life insurance is not just a monetary valuation of human life.
On the contrary, it is more to help the inevitable financial consequences arising from major changes.In reality, it can help our widows pay for funeral expenses, repay debts and loans, pay for children’s education and living expenses.But most importantly, in the event of an accidental death, life insurance can greatly reduce the financial burden faced by surviving family members.Therefore, for families with a single source of income, life insurance is like a reassurance.
3. Life insurance is a risk management tool, not an investment product.
Although some life insurance types and design schemes do make the policy look like a good "investment" with tax advantages, the original intention of life insurance is not to become the best investment channel.
For ordinary American families, it is not recommended to consider life insurance products with an "investment" function until they reserve a family emergency fund, pay off all loans other than the mortgage, and fill up a 401(k) or Roth IRA.
4. If you are the pillar of family income, then you do need life insurance.
If you are the sole or core source of family financial income, for your spouse, children or people in need of care, applying for life insurance for you is an indisputable matter.At the same time, if you are an important employee of the company or a business partner, you may also need life insurance.If you have retire stably, and your finances are completely independent, you can independently pay for all the affairs you will face, and no one depends on you, then you may not need life insurance.However, you may want to consider life insurance as a financial tool for long-term planning.
5. Finding a trusted broker is more important than anything
A knowledgeable and experienced broker can help sort out the different actual situations of each of us, and conduct professional evaluations and comparisons among different insurance companies, so as to give valuable product and program suggestions.
More options are one of the benefits that a trustworthy insurance broker can return to policyholders.
At the same time, with professional certification and additional certification by insurance companyProfessional insurance personnel, Not only can provide services for certain specific groups/fields (such as global high-net-worth customer groups), but also can directly negotiate underwriting with insurance companies on behalf of each insured, and gain more rights and interests in the underwriting process, thereby helping Customers bring an excellent experience.
Therefore, finding a reliable broker who specializes in life insurance is a core element of insurance policy financial planning.
6. Life insurance is a contract document
A life insurance, we usually call it an insurance policy, it is a contract document between us and the insurance company.To put it crudely, the principle of insurance is to collect money from a hundred people and put it in a pool. When a person needs to settle a claim, he will use the money in the cash pool to pay.
7. There are 4 important roles in life insurance
The four roles in an insurance policy are: the insurer, the policy holder, the insured, and the beneficiary.
The insurer refers to the insurance company, who is responsible for making claims when facing claims; the policy holder refers to the role responsible for paying premiums to the insurance company; the insured is the object of the entire insurance policy.The beneficiary can be a natural person, trust, or other entity to receive claims.
for example,American Life Insurance GuideThe editor of J has applied for an insurance policy from an insurance company. J is both the holder and the insured of the policy, and Mr. J is the beneficiary of the policy.If J passes away, her husband will get the compensation.
Article summary
American life insurance, especially cash value lifetime insurance, in addition to providing more comprehensive protection, has evolved into a multi-functional financial tool for wealth accumulation and inheritance, but we rarely talk and share stories about life insurance with friends.We are not surprised for this.
But as weAnalysis of the previous articleIn that way, openly discussing the financial situation with family members and making certain professional plans in advance will ultimately help us go further on the road of wealth accumulation.
