Posted by Buying insurance for parents is essentially protectionThe financial situation of the whole family is not affected.
In reality, the older parents were diagnosedCancer, stroke, need long-term care, or accidental death, The various things that have come in abruptly have a very significant impact on the children’s family.
When family members of their children talk about "money," things can become subtle and complicated.
At this time, if life insurance claims can be used to unilaterally solve the problems that "money" brings to family life, it can greatly help family members to tide over the "difficulties" between them.Charcoal in the snow"The role.
On the other hand, if the parents have strong financial resources and have enough self-owned funds to cover all expenses, life insurance can also play a role in "Icing on the cake"Help-the death claims provided by life insurance can help children or beneficiaries pay high inheritance taxes, so as to successfully inherit the property.
The following is forParents buy life insuranceOf 5 options.
1. Term life insurance / Term
Term life insurance, As the word "regular" in the name says, it is only valid for a specified period of time.This is a type of insurance solely used for "protection".
The premium of term life insurance is usually guaranteed unchanged.forInsured person who buys insurance for parentsIn other words, term life insurance is guaranteedLowest cost product.The disadvantage is that due to the high compensation leverage, the underwriting risk is high.Life insurance companies will have the situation of "picking customers".
Beginning in January 2021, a large American life insurance group temporarily announced an indefinite postponement of insurance applications for 1-60 years old
Description:Buying term life insurance is also a protection for every penny.The fewer compensation items, the cheaper the price; More compensation itemsPre-mortem benefit term life insurance, Usually the price is slightly more expensive.
If we need to protect the family's finances for a certain period of time, term life insurance is a good choice.
2 main points of applying for term life insurance
age
Yes it is.The older you are, the fewer choices you have.Different insurance companies will also stop accepting applications based on the situation.
Below are the maximum application ages, andTheoreticallyCorresponding products that can be applied for:
- 75 years old – 10-year term life insurance
- 70 years old – 10-year term, 15-year term life insurance
- 65 years old – 10-year, 15-year, 20-year term life insurance
- 60 years old – 10-year, 15-year, 20-year, 25-year term life insurance
- Age 55 – 10-year, 15-year, 20-year, 25-year, 30-year term life insurance
- 45 years and under – 10 years, 15 years, 20 years, 25 years, 30 years, 35 years, 40 years
- Note-In theory, it is up to the insurance company to decide whether you can apply for it and whether it can be covered in the end.The important thing is that various insurance companies also have clear limits on the amount of protection that can be applied for at different ages.
health condition
Before applying for life insurance, you must first consider,How is your health?We often say,Health is priceless, This value is fully reflected in the process of buying insurance.
For healthy policyholders, the application process is quicker and the premiums are usually friendly.
As we grow older, we usually encounter these problems:
- Diabetes mellitus
- hypertension
- overweight
- arthritis
- Frequent use of tobacco or alcohol
in conclusion – Health status directly affects the level of premiums and whether the insurance company is willing to underwrite."No medical examination required"The term life insurance is only forHealthy bodyMiddle-aged and elderly people.
2. Savings whole life insurance / Whole Life
Savings whole life insurance, also known asSavings dividend insurance, It is a life insurance that lasts for a lifetime.In other words, as long as we continue to deposit premiums, the policy will not lapse.
Description:There is no time limit. As long as the insured dies, this type of life insurance will make claims.
In addition, savings dividend insurance can also accumulate cash value, which has a series of uses, as follows:
- Tax-friendly investment
- Borrowing from insurance policies
- Provide financial support to family members
- Pay premium
Over 60 years old, due to the high price, apply for savings dividend insurance, comePolicyholders who provide "financial security" to the familyNot much.But the following cases are exceptions:
- Parents have a huge legacy
- Excessive funds require tax incentives for parking
- The parent intends to leave a certain amount of funds to the beneficiary (such as for children)
The characteristics of this type of insurance are:
- Premium can be fixed
- The most expensive premium
- The policy lasts for a lifetime and will not expire
in conclusion – ForBuy insurance for parentsFor policyholders,It is not a common practice to use savings and dividend insurance as a "protection".The exceptions that are generally applicable are also listed above. 60-65-year-old healthy parents are still provided by insurance companiesInsurance service without medical examination.
3. Guaranteed claims universal insurance / GUL (GIUL GVUL)
althoughmarket shareless than 10%, butGuaranteed claims type universal insurance, Indeedbuy insurance for parentscommon choice.FLOWERThis type of insurance can almost be said to cater exclusively toMiddle-aged and elderly people buy insuranceborn in the market, often used for wealth inheritance (estate planning).
Description:Guaranteed claims universal insurance, like a term life insurance (Term), except that itsValidity period is lifetime.
The reasons for buying guaranteed claims universal insurance for parents are:
- Guaranteed claims, ensuring financial protection for the family or beneficiaries
- Estate tax planning to avoid inheriting children’s out-of-pocket expenses
- Pay for the end-of-life expenses such as funerals
Some details about buying guaranteed claims insurance for parents:
- Premiums are cheaper than savings and dividends for whole life insurance
- Premiums are more expensive than term life insurance
- GUL is not technically whole life insurance, because when we buy it,To choose how old to protect, Such as buying 90 years old, 100 years old, or 120 years old.
- The premium stays the same every year
- Premiums have nothing to do with market interest rates
summary - FLOWER Guaranteed claims type universal insuranceusuallyBuy insurance for parentsa first choice.This type of policy covers a longer age group, with a stable annual premium and less premium than a savings-participating policy.
4. Traditional Universal Insurance UL / Securities Universal Life Insurance VUL / Index Universal Life Insurance IUL
Although they are all called universal life insurance,Traditional Universal Life Insurance.Securities Universal InsuranceAndIndex Universal InsuranceThese three types of insurance are completely different products than guaranteed claims universal life insurance.
Description:These three types of insurance are like a cash value account based on savings and dividend insurance, coupled with flexible payment terms, and investment product linkage options.
For parents over the age of 60,This type of insurance is usually not a common option.But the following are exceptions:
- Prefer to protect life-long life insurance
- Have investment and financial management experience, and have risk tolerance
- Plan to buy lifetime protection at a lower price
- Intend to adjust the claim amount at any time
- And there is a professional life insurance consultant [every year] to audit the account risk
Final Thoughts– Traditional universal insurance, securities universal insurance and index universal insurance are usually notBuy insurance for parentsThe first choice for protection insurance.Although this type of insurance policy can guarantee life, the performance of the policy and the payment of premiums are linked to investment products, which is uncertain.
(>>>Recommended reading:Column｜Insurance spread of 50%+, horizontal comparison and evaluation of insurance premiums for tens of millions of dollars in wealth inheritance policies）
Article summary
As children, buying insurance for their parents is often a consciousness that gradually arises with age.
With age, the probability of parents getting sick and accidents greatly increases, but at this time,The threshold for insurance has also become very high.Especially for insurance companies that pay very comprehensively, they will setage limit,Product insurance limit,Health rating restrictions, and to bear more expensive insurance premiums.
Parents at the age of 60-70 may be childrenBuying life insurance for parentsThe last time window.At the same time, we also remind readers to take advantage of the advantage of being young and lower premium costs and health costs to purchase and configure insurance as early as possible to lock in our health status and premiums.
Okay, about "Buy insurance for parents"This topic, today’s sharing is here. At the end of the article, the American Life Insurance Guide website recommends a doctor of cancer biology from Duke University in the United States." The Truth About Cancer" video. We hope toIn a fun way, To help children and parents, more professionally and comprehensively understand and face the elderly diseases, especially cancer.
