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What are wealth management insurance and consumer insurance?What is the difference, and the tips on how to buy

In the American Life Insurance Guide Network CommunitybrokerIn my work, I often encounter the insured person asking, "Hello, I want to buy insurance."In further communication, the policyholder will further indicate that what is needed is car or house insurance.At this time, the community insurance consultant will carry out a voluntary science work: car insurance, housing insurance and other insurances belong to the field of consumer insurance, andAmerican Life InsuranceIt belongs to insurance with cash value and belongs to the field of wealth management insurance.

life-insurance-buyer-guide

Except for the common point of "insurance" in the name, "consumer insurance" and "financial insurance" belong to completely different professional fields.If the insured purchases wealth management insurance in accordance with the inertia of consumption insurance, he is likely to face greater losses and risks.

In order to correctly distinguish the two types of insurance fields, the American Life Insurance Guide will use this article to help policyholders understand,What is a consumer insurance, what is a wealth management insurance, what are the differences between them, which insurance is a consumer, and the know-how of how to buy.

What is consumer insurance?

Consumer insurance is a type of consumer insurance, that is, the customer signs a contract with the insurance company. If an insured accident occurs within the agreed time, the insurance company will compensate or pay according to the originally agreed amount; if not within the agreed time In the event of an insurance incident, the insurance company will not refund the premium paid.

We use an easy-to-understand way to understand "consumer insurance", which is something we buy back from insurance companies.The money handed over will be handed over as soon as it is handed in, as the cost of purchasing this "commitment".

Common types of consumer insurance are:

  • Home insurance
  • Car/motorcycle/truck/yacht/aircraft insurance
  • Health insurance
  • Pet insurance
  • Commodity/Product Insurance
  • Term life insurance / GUL Insurance
  • other…

(>>>Recommended reading:What is the difference between "medical insurance" and "life insurance" in the United States? |How to choose a reliable insurance company?

What is wealth management insurance?

Wealth management insurance is different from consumer insurance. Consumer insurance has no cash value, while wealth management insurance has cash value.To understand "financial insurance" with a metaphor, the insured goes to an insurance company to open a financial account for savings and wealth management, then deposits the money in the insurance company to take care of it, and get the benefits promised by the insurance.

Common types of wealth management insurance are:

It can be seen from this comparison that"Consumer insurance" means that we exchange money for a service, and we lose all the ownership of the money; "financial insurance" means a financial account we opened, which can be accessed, and we have not lost all the ownership of the money. .There is such a fundamental difference between the two.

If you follow the habitual thinking of purchasing “consumer insurance” to configure “cash value insurance”, we will find that an insurance policy with an insured amount of $100 million, the same product of the same brand, can be purchased at $700/month, and at $1500/month Can buy, it is easy to get confused, so how should we choose?May as well continue to look down

How to buy consumer insurance?

The purchase of consumer insurance is a pure product purchase process.ComparedCredit of different insurance companiesAnd price, You can quickly make a judgment.

For example, a car insurance with a coverage of $100,000/$300,000 and other payment conditions are the same, but the premium of company A is on average $100/month cheaper than company B. If the credit ratings of the two companies are both good, then buy the insurance People usually choose A company's products that are more "cost-effective".

In addition, because consumer insurance products are easy to standardize, many sub-sectors have fully realized Internet insurance and claim settlement. This method can help insurance companies and agents reduce labor costs and bring benefits to policyholders on brand prices.Such as:

  • Internet car insurance:Root
  • Internet house insurance brand:Hippo
  • Internet Renter Insurance Brand:Lemonade
  • Internet consumer life insurance brands:humming /Ladder/Haven

How to choose wealth management insurance?

Because wealth management insurance is essentially a "personal financial account."How much money should be put into this account can be deduced in the following two steps:

  1. demand:Make it clear "What do I want?"
  2. Selection and design:Policy selection and comprehensive design based on demand

1. Needs, what do I want?

Configure wealth management insurance, first of allDemand-orientedThe selection process of (what I want).

life-insurance-meeting

On the demand side, fromcomprehensiveSickness protection, To supplementRetirement income planning.TrustSegregated from assets, estate planning andInheritance of wealth.The wealth management insurance field has formed a set of rigorously segmented professional markets.

Every financial insurance company that enters this field has its own subdivisions.Different policy products are suitable for different stages of life or different needs.The situation where a company or a product takes all does not exist, and it cannot exist.Only with correct and selected products and reasonable configuration can the insured's interests be maximized at all stages.

So, returning to the above question, how much money we need to put in our policy account, whether to deposit $700/month or $15000/month, is completely based on the policyholder’sThe demand target, product selection and program design are all three factors to decide.

2. How do I choose products and design solutions?

According to the survey conducted by the American Life Insurance Guide Community for policyholders, policyholders do not lack trust in "insurance."

What some policyholders worry about is,The knowledge and training received by insurance brokers or financial consultants themselves are the result of deliberate screening of the knowledge framework system by higher-level institutions.Under this training framework given by upstream institutions, the "knowledge" framework accepted by insurance brokers or financial advisors is "natural" with inclination and limitations.This situation is not beneficial to both practitioners and policyholders.

In response to this situation, in the product selection stage, we recommend that policyholders learn and understand the basic knowledge of cash value lifetime life insurance in advance, and have a preliminary understanding of the key points of questions in various design schemes-this is what the American Life Insurance Guide website has always advocated "Learn Before You Buy"ofInsurance concept.

Ultimately, policyholders need to cooperate with professional independent large-market agents or insurance consultants, or purchase insurance services provided by professional consultants with fiduciary responsibilities.In the process of communication with professional practitioners, our actual demand is always the same as the insurance orientation, and the professional knowledge framework and product resources can answer questions and provide basic service framework for us.Through this interactive knowledge learning process, policyholders can not only deepen their understanding ofAmerican Life InsuranceWith a true understanding, eventually, you will find products and design solutions that can truly protect yourself and your family. (Finish)

>Recommended reading:00. "I just want to leave a sum of money for my children. I don't want to worry about so many problems. How should I be insured?" 
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