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Why pay 20 years instead of 5 years
When I design life insurance for a client, I can do it for 20 years. I usually don’t do it for 10 or 5 years. Some friends don’t understand. Have to pay?It's not cost-effective.
I understand this idea, and most people's first reaction is like this.
I want to clarify the truth here from two aspects.
XNUMX. The story of buying a house
I have taken a fancy to a 100 million house, this house is going to sell for 100 million, the developer gives three payment plans, namely, single payment, 10-year payment, and 20-year payment.
1. One-time payment is to pay 100 million in one go.
2. No down payment is required for 10 years, but 10 plus interest is paid a year.
3. If you pay in 20 years, you don't need a down payment, and you pay 5 plus interest in one year.
If you were me, which one would you choose?
Most people generally choose the third type. Although they will pay some interest, I can live in a house of 3 million in the first year with only more than 5 yuan. I will invest the remaining 100 yuan. This is the correct method.
Then, if you pay in a batch or 10 years, I won't think about it.
XNUMX. If I will definitely have risks
Returning to the topic of insurance, I am going to buy a health insurance. The insurance is quite high. The insurance clerk gave me two options:
1. Pay for 10 years, 3 yuan a year
2. Pay 20 years, 1.5 yuan a year.
For the above two payment methods, a total of 30 yuan must be paid before and after. The premium is the same, and the amount insured is the same. Which one would the average person choose?If it were me, I would choose the second one decisively, because:
I bought this insurance to prevent health risks, because I know that birth, old age, sickness and death are natural laws. People cannot avoid physical pain by eating whole grains. Some come early and some come late.
If I have a risk in the 9th year, the difference between the two payment methods is:
1. For 10 years, 3 yuan a year, and in the ninth year, I have already paid 9 yuan.
2. For 20 years, I paid 1.5 yuan a year. In the 9th year, I only paid 13.5 yuan.
The claims are the same. Use 27 to exchange for claims, or 13.5 to exchange for claims. You should know how to choose now, right?Of course, what needs to be reminded here is that the insurance premium is not determined by inverse proportional relationship. For example, if the premium is paid in 30 years, the premium will exceed 1. The above figures are just to make complicated things simple.
supplement:
If you think the premium is expensive, it is because of the high sum assured.
If you think the insured amount is not high, it is because the premium is low.
You have to make sure that the insurance rate is controlled by the China Insurance Regulatory Commission. What kind of age corresponds to what premium, the younger the cheaper, the longer the protection period, the older, the more expensive, and the shorter the protection period. The premium for the 18-year-old is absolutely different from the 48-year-old premium!This is why lifelong protection insurance is more cost-effective the younger you buy.
I believe this article will be helpful to you, to summarize one sentence:The longer the payment period of protection type insurance, the better, because lower premiums can be used to obtain higher protection; and the shorter the payment period of wealth management insurance type, the better, because inflation must be taken into account!
