6 Tips You Should Collect Before You Buy Insurance
There are always people who say that insurance is very difficult to choose with so many terms we just don't understand. In fact, although insurance products are complex, but with a bit of lessons, it is easy to understand.
The lessons here are not to let everyone learn how insurance is designed, but on the basic principles that need to be understood and followed, that can guide you to know what you need, find the right direction, and take fewer detours.
1.The family economic pillar should be the top priority of insurance
With or without children, the highest priority for a family is the family pillar, to be honest, the normal functioning of the family cannot be separated from the support of the funds.
If a child is sick and needs money, parents are able to cope. But if the parents fall and do not have enough savings and insurance, then the child is powerless, and for the whole family, there is a high probability that the cost of treatment is a significant cost and even the risk of interrupting the child's education.
Therefore, the protection of the family pillar must be a priority, and not just for children to buy. Also, don't give your child too much protection, and the protection of the economic pillar is not in place.
2. The payment period is better as long as possible, but do not exceed the retirement age
Apart from one-year insurance, such as accident insurance, medical insurance, the purchase of critical health insurance and life insurance, are subject to the choice of payment period. Short is once, or 5 years, 10 years, long 20 years, 30 years. If you are toho can choose at will, the cross-up are ok, the rest here suggests that we choose the longer the better.
The longer the payment period: 1. can reduce the annual pressure on contributions; 2. The more risk-free the payment period, the greater the leverage of the product, but the higher the corresponding total premium.
Take Centennial Insurance, for example, a 30-year-old man with a premium of 500,000, insured at 70, 20 years and 30 years to pay, the premium ratio is 1:1.17.
If the annual savings of the premium for financial management, according to the calculation of income calculation, if you can guarantee an annualized rate of return of more than 3.5%, then the financial return is more than the overall overpayment of premiums, so it is even more profitable for 30 years.
However, here are more to say, although the longer the contribution period the better, but it better not to exceed the retirement age, then with a limited pension to repay the premium, can affect the quality of life of old age.
3. Limited budget should choose fixed-term, the term must cover your career golden age, with enough budget can choose permanent insurance.
For long-term insurance, such as critical health insurance and life insurance, there will be different periods of coverage, such as 10 years, 20 years, up to a lifetime. The longer the period of protection, the more complete the protection of nature, but the corresponding premiums are also easy to cost out of the sky, this time to be divided into situations.
If your budget is particularly adequate, you can afford to live in a year nearly ten thousand dollars or tens of thousands of dollars in premium expenses (usually a product category to reach one million bonuses), then you can directly guarantee life, save time and worry.
If the budget is limited, choose regularly, which is also a recommended option for most people. The advantage of regular insurance is first of all the profitable premiums, the higher leverage, the annual pressure of contributions will not be too great, if inflation is taken into account, the future burden of premiums will gradually decrease.
Also, if she is old sick, usually also take a conservative treatment, if there is some accumulation of wealth in the early stage, then the cost of treatment, can essentially cover on their own.
However, even if regular coverage, the term must be able to cover the career of the golden period (30-50 years), such as 30-year insurance, choose regular products, then insurance at 60 or 70 years are ok, but if only 40 years, then the overall coverage will decrease a lot.
4. Four basic type of insurance
Serious health insurance, health insurance, life insurance and accident insurance, can be considered insurance’s four basic type, each coverage has its own clear division of labour, strictly speaking, these four protections must be called a complete configuration.
Some people often have the question "I have serious health insurance, don't have to buy medical insurance" as the question, in fact, both are completely different types of insurance. Serious health insurance is a payment system, as long as the conditions of claims are met, the insured amount can be paid to the insured once, but medical insurance is a reimbursement system, the medical expenses generated by hospital visits, must take various documents to find the reimbursement of the insurance companies.
Therefore, medical insurance is more used to provide people with medical treatment, while critical health insurance is more of a role in reducing lost income due to illness, as well as future rehabilitation expenses.
In addition, accident insurance only covers medical expenses and deaths caused by accidents, and life insurance protects any legal liability because of the severity. Generally speaking, these four types of insurance, accident insurance premiums are the cheapest, medical insurance is slightly cheaper, health insurance premiums are the most expensive, life insurance is the second.
Therefore, if the budget is particularly limited, can be prioritized to configure accident insurance, medical insurance, are one year products, premiums 1,200 yuan can be made, the difficulty of decision-making is low;
5. Protection is a gradual process you can’t rush
Setting protections is a step-by-step process for the vast majority of people, especially children and youth. Because with increasing age, changes in family structure, income growth, and even include changes in mentality, will affect the security configuration.
So don't take the idea of once and for all, and over-pursue a life, a decent insurance policy.
First of all, few products can be fully adapted for you to meet all your needs;
Purchasing insurance is a dynamic process of constant repair and repair, within the scope of capacity as far as possible to make protection, such that future conditions are sufficient, and then continuous optimization is also possible. No one can buy insurance all at once. It is normal to buy seven or eight policies in a lifetime.
But if you are over 40, it is recommended to do so whenever possible. Because this age of the body was downhill, size problems will also appear, for the protection of space optimization was very low.
6. The protective insurance is the basic, others are just optional
Many people buy insurance with an inherent obsession, think that the one can get the principal back is the good insurance, otherwise the insurance is bought in vain, it is actually a misunderstanding in insurance. I suggest that we need to buy enough protective insurance and then consider education, retirement insurance.
How do you understand that? The risk for a family is clearly greater and more urgent than not having enough money for a better education and a better old-age life.
So protection products are the basis of our insurance, after all, education and pensions have other means of accumulation, and insurance is just one of them. If the budget is limited, the priority will be an adequate personal insurance configuration, the conditions for then configure the return of the products are also on time.
Write at the end:
The most fundamental purpose of our insurance is to avoid risks, so that the protection itself is just necessary. In today's complicated insurance market, how not to lose the basic intention, choose the right products, you can refer to today's principles for everyone to analyze.
