Column | How to buy Whole Life savings insurance?5 questions and 5 answers shared by American insurance financial advisors

in the previous "What is Insured Index Insurance?Who is suitable for buying protection index insurance?"After the column article was published, some readers left a message. For the first time, they learned that there are so many different categories in index insurance, and they also raised new questions: ForWhole Life insurance, which we often call savings insurance, savings dividend insurance, is it also divided into many different categories?Are we buying the wrong WholeLife insurance product?

With these questions,American Life Insurance Guide©️Conversation with American Life Insurance Financial Advisor Heather Xiong CFP®️.in the text,Heather Xiong CFP®️In a question-and-answer format, she shared her experience and opinions.This article has been edited and published by TheLifeTank.com for the reference of insured families.

(Hereinafter, "Whole Life" is used uniformly instead of "savings insurance", "savings participating insurance", "participating insurance" and other terms)

Q1: Is Whole Life (savings insurance) also divided into financial management and protection?
Answer: Yes.

Q2: What is the difference between the two Whole Life (savings insurance)?
A: Let me give an example. Today, a healthy 40-year-old non-smoking male wants to buy $100 million in WholeLife life insurance.How much will it cost?

(As shown in the picture above) If you buy a guaranteed WholeLife in the traditional sense,The annual premium amount is about $1;

If you buy a wealth management WholeLife according to the goal of investment and wealth management,The starting premium for a year is around $3; Further, if you buy it as an investment, the premium is theoretically not capped.

Let's compare,Although the insured claims are all $100 million, the annual premiums vary greatly for different purchase purposes.This guaranteed Whole Life policy has accumulated premiums of $34; another Whole Life policy,the accumulated premium of $60;The difference between the two premiums is nearly 30, which is the obvious difference.

Question 3: Then why do people buy wealth management savings insurance?
A: Insurance financing is a method and choice for personal and family financing.

We generally refer to wealth management savings insurance as savings dividend insurance, or dividend insurance.This type of policy,Provides the ability to "save" and "divide", and has been sold for nearly a hundred years, with a good public education foundation and market share.

Reasonable design of savings dividend insurance is a stable way of saving and financial management, which providessuch as supplemental retirement income, the potential for wealth to be passed on to the next generation.

Q4: What is Guaranteed Savings Insurance?
A: Protected savings insurance does not provide dividends, it is for pure insurance claims, it is a simple and easy-to-understand insurance product type.

从Overall data on the US insurance marketInside you can see,More than half of WholeLife policyholders are insured considering family financial issues related to the end of their life, such as the disposal of inheritance and funerals.

A benefit from guaranteed savings insurance is a common option for resolving appeal issues.It can also be seen by comparison that its premiums are more advantageous than wealth management savings insurance.

Question 5: Which of these two savings insurances is better?
A: There is no standard answer to this question.

I've been saying that the biggest hurdle for consumers or investors in the cross-border insurance market in the U.S. and even globally,After entering the right channel, facing the problem of too many choices;Between pure wealth management type and pure protection type, there are various savings and insurance schemes that mix the functions of the two;

What policyholders need to avoid is, under the influence of various noisy voices, being guided and dominated by "greed" and "fear", and making choices that are not conducive to themselves.

Such families not only fail to achieve the goal of protecting assets and transferring risks, but instead add a layer of unreasonable debt leverage to the family.

Therefore, learning some basic American financial insurance knowledge and understanding the actual situation of your family will be more conducive to communication and long-term relationships with professionals.You give your time, and you will get corresponding knowledge in return.The entire insurance application experience will also be more efficient and calm. (End of full text)

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