Posted by In 2021/22 by American Life Insurance Guide Network ©️Data reportPointed out thatFor more than 70% of policyholders, the main reason for choosing index insurance is for financial management- That is, "accumulation of cash value".
And for some families looking for insurance leverage protection,They just want to "buy a simple life insurance", and want to avoid the situation of "buying insurance and buying wealth management";If there is no illness or disaster in your life, it is possible to get the refund of the "premium" back.So in the US market, what kind of insurance products are there to choose from?
To that end, TheLifeTank®️ has invited American Life Insurance columnistsHeather Xiong, CFP®️ , to answer this question for the reader.This article has been edited and organized,This paper briefly introduces what the customized insurance type life insurance is, its applicable groups, the comparison of premium prices, and the three core tips for choosing this type of insurance.
What is Insured Index Insurance?
Protection index insurance, English called Protector Indexed Universal Life, referred to as PIUL.
Protection index insurance, which is a life insurance company,For families looking for "guaranteed insurance claims" rather than "insurance financing", introduced a specific type of index insurance.
PIUL vs. IUL, what is the problem that protection index insurance solves?
RegularIndex Insurance (IUL), usually focusing on the ability to accumulate cash value, most of which are used in the field of insurance and wealth management.
Conventional IUL insurance products, combined with the design of low premiums to obtain high-leverage lifetime claims protection, require very professional risk management and control capabilities, as well as year-to-year data monitoring and analysis; later adjustments are almost inevitable.This design scheme is not very suitable for families who are simply looking for protection. - Heather Xiong CFP®️
The industry usually compares IUL to a comprehensive wealth management product with preferential taxation, which is also the reason for 70% of insured households to choose “insurance wealth management” as the reason for purchasing index insurance.
But for some policyholders, we don't want to careCap yield Cap.Index volatility,withAnnual Earnings InterestAnd so on whether the insurance account is in line with the expected normal work situation.We just want a certainty from the insurance company,Avoid the trouble of "broken guarantee"——When applying for insurance, you can immediately determine the guaranteed claim benefit commitment and the guaranteed claim period commitment.
For this part of the group, a real insurance product that purely provides insurance functions is needed, rather than a wealth management insurance product.
The introduction of PIUL protection index insurance is a good solution to this.
On the one hand, the insured can use the market leverage provided by PIUL to reduce the premium cost of lifetime claims; on the other hand, from the moment of application, the insured can get the specifickeep promise, which provides insurance coverage guaranteed to age 90, 100, or 120.
Uncertainty and guaranteed certainty are the biggest difference between IUL insurance and PIUL insurance.
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PIUL Protection Index Insurance Selection Guide
PIUL is a traditional consumer insurance product that is more easily understood by the public. It aims to seek protection as its absolute goal, guarantees lifetime claims, and also provides the potential option of "refunding premiums".
With this in mind, you only need to consider the following 3 deciding factors when purchasing PIUL insurance.
- 选择insurance company brand
- Determine premium price (budget)
- Customized claims period with guaranteed continuous coverage
1. Choose an insurance company brand
PIUL insurance issued by different life insurance companies usually provides different claims coverage for policyholders to choose.
From providing only pure death claims, toComprehensive coverage of life benefitsFor major disease claims, chronic disease claims, terminal illness claims, and long-term care claims, the policyholder needs to choose different insurance brands according to the premium price.
Policyholders may also have their own insurance brand preferences.Some policyholders value a long brand history and customer service, while others may prefer a familiar, well-known brand.
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2. Determine the premium price (budget)
Different insurance companies have different comprehensive service levels, and different claims items, and there will be a premium for the brand, so the price of the premium will also be different.
The more coverage, the more expensive the premium.additionally providedComprehensive pre-existing claims- such as critical illness claims, chronic illness claims,Long Term Care Claims, and PIUL insurance products for terminal illness claims,Premiums will increase compared to PIUL, which only provides death claims.
A simple premium price comparison illustration is shown in the figure below.
*The same 45-year-old woman prefers a healthy body with an insured amount of $100 million, and a comparison of PIUL premiums for different benefits
Purchasing the required claims items and formulating a reasonable premium budget are the key points that policyholders need to discuss with your life insurance consultant.
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3. Customize the claim period for continuous insurance
We can customize the claim period of "guaranteed continuous insurance" by ourselves, which is the characteristic of purchasing PIUL index insurance.
In a typical PIUL policy, the policyholder can assess the family life history to customize the policy from guaranteed coverage to age 90, to guaranteed coverage to age 120.
Our selection of guaranteed continuous coverage The older the claim age, the more expensive the premium will be.The PIUL insurance that guarantees continuous insurance claims to the age of 100 has higher premiums than the PIUL insurance that guarantees claims to the age of 90.
Let's take a 45-year-old non-smoking and preferred healthy woman as an example. The comparison of annual expenses is shown in the figure below.
*Comparison of premiums for a $100 million protection policy with a 20-year premium term
Guaranteed uninterrupted claims settlement, making PIUL index insurance likeSavings insurance(Whole Life), but the premiums are relatively cheap.
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Article summary
Compared with Whole Life, the premium price of PIUL protection index insurance is more affordable, but it also has a guaranteed claim commitment similar to Whole Life.
In addition, protection-type index insurance provides a customizable continuous insurance age, which is suitable for groups of different age groups who are looking for protection leverage. (End of full text)
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