Posted by Sudden increase in the cost of life insurance?First understand the monthly fee design method of American life insurance, so as to avoid greed for small and cheap.
Onlife insuranceThe industry sometimes complains from policyholders that the life insurance, which has been paid on a regular basis, has been notified that the premium will increase.In some cases, the insured will be very confused and at a loss, and even some customers may choose to waive the policy and surrender the insurance because they cannot pay the premium; in this case, the insured will not have any claims benefits, even for many years. You can only get back a small part of the premium, and you lose the benefits you deserve.
So why do the premiums of certain life insurance plans suddenly increase after many years?
Age is an important factor in determining the cost of life insurance.Generally speaking, premiums increase with age, and in certain age groups, premiums will be adjusted significantly.For example, 30 to 35 years old is the golden stage of career advancement. Many people also choose to form a new family during this period. The insurance premium usually changes significantly in this age range.As the age grows, the probability of the insured's physical condition will continue to rise, the underwriting cost will increase, and the insurance company will increase the customer's premium accordingly.
Learn about the insurance company's monthly fee design method in advance, and configure your own insurance policy rationally
Generally, the money we pay for purchasing insurance should be called "monthly fee" rather than simply called "premium".Because of the purchase of life insurance, the expenses in the policy are generally pureLife insurance premiums, policy fees, investment management feesand many more.Insurance policy fees and investment management fees are relatively fixed; but life insurance’sPremiumBut willGrows with age.
When purchasing an insurance policy, customers only need to decide the size of the insurance policy purchased, and the monthly fee/monthly fee they choose to pay in the first year. Customers can choose to pay a fixed amount each month, pay the basic premium, or over-deliver the premium ( overfund).All costs for maintaining the operation of the policy will be deducted from the premium paid each year. When the monthly fee we pay cannot meet all the requirements, the insurance company will notify the customer to increase the monthly fee.
The premium of life insurance should be called "monthly fee" or "annual fee"
American Life Insurance GuideNet reporters learned in the process of interviewing senior life insurance practitioners that when young people younger than 30 years old, when formulating an insurance policy, the broker will recommend that they choose to pay the minimum fee to maintain the basic operation of the policy; and for the purchase of an insurance policy after the age of 35, and For customers who wish to use insurance policies for tax-free retirement planning, brokers will recommend overpayment of premiums to ensure higher retirement income.Regardless of the method chosen, practitioners suggest that customers who have the ability to pay can pay in the form of annual payment.This not only reduces the cost of underwriting, but the insurance company will also give customers a certain percentage of profits as an "encouragement" for depositing the entire year's premium at a time.
In summary, when purchasing life insurance, customers should take the form of protection they need as the standard, rather than making choices based solely on the level of monthly fees.Know in advanceAmerican life insurance expensesThe payment design method, combined with the specific ability of the individual and the investment form of the insurance policy, is comprehensively considered, and before purchasing the insurance policy, consult the professional brokerage service personnel on the design plan, and tailor the insurance policy that is most suitable for you.
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