I want to buy insurance, can anyone tell me what are the do's and don'ts of buying insurance?
I want to buy insurance, can anyone tell me what are the do's and don'ts of buying insurance?
I am Han Proverbs, studied insurance major in college, after graduation, the whole 13 years have been engaged in the insurance industry, have done insurance training instructor and insurance sales, the following is my experience accumulation. Share it with you, hope it can help you!
Do's and Don'ts of Buying Insurance:
First, before buying, to understand the scientific allocation principle of insurance
1. The order in which family members configure insurance: buy for the family breadwinner first, then buy for the spouse, children and the elderly.
2, the order of configuration of different types of insurance: prioritize the configuration of accident, critical illness and medical protection insurance, and then configure education, pension and other financial insurance, and finally through the insurance to do asset inheritance, tax planning, asset preservation and other planning.
3. Recommendations for the allocation of coverage for different insurance types
(1) Accident insurance: the breadwinner of the family should have a minimum of 10 times his annual income as a substitute for future income in the event of an accidental risk. It is often said that insurance cannot replace one's husband, but it can replace the husband's income.
(2) Critical illness insurance: the average cost of treatment for critical illness is 300,000-500,000 yuan, and it is recommended that the minimum allocation of critical illness insurance is 300,000 yuan; however, the expenses of critical illness not only include the treatment cost, but also include the subsequent rehabilitation cost and loss of income. Critical illness insurance is mainly used as compensation for loss of income, and it is recommended that the insured amount be 5-10 times the annual income. General critical illness insurance is diagnosed or meet certain surgical criteria, early payment, that is, with the disease to protect the disease, without the disease can be a supplement to the pension, the future premiums will be returned over time and increase in value. If there is a slight lack of funds, you can also configure a consumer-type critical illness to plan.
3) Medical insurance: It is recommended to allocate a reimbursable million medical insurance and a hospitalization allowance insurance with fixed payment. This can be achieved by reimbursement of hospitalization expenses and daily allowance for hospitalization, which can compensate for medical expenses and loss of work.
4) Financial insurance: It is recommended that on top of the above health insurance, if you have sufficient funds, you should allocate financial insurance and pay premiums according to your affordability, so as not to affect your normal quality of life. See the following suggestions for the percentage of overall family insurance premiums.
4. Family premiums as a percentage of annual family income: it is recommended that the percentage should be 10-15%, preferably not more than 20%.
II. Considerations for buying insurance
1) Be truthful about your health condition. If you deliberately hide your health condition, you may not be compensated when you make a claim within two years of taking out the policy, and you may not even get a refund of the premium. After two years, it will be more troublesome to make a claim, so you must follow the principle of utmost honesty and truthfulness.
2) To understand the content of the insurance we buy, we need to read the terms and conditions in addition to listening to the insurance salesperson, because insurance is based on the terms of the contract. First of all, look at the liability and exclusion: that is, what is insured and what is not insured. And the product is consumer or return type, when the product expires, when to receive money, when to receive dividends, how to receive money and so on. In addition to pay attention to some of the rights and interests of the policy, such as whether there is a policy loan function, automatic advance payment of premiums function, participating insurance dividends, "annuity + universal life (universal account)" combination of plans linkage rules, the rules of the fee deduction, additional rules to collect, investment-linked insurance account settings, fee deduction, investment section etc.
(3) the insurance policy after the effective date of the change in the rights and interests of the security: many people buy insurance, the contract is put in a corner on the shelf, over time, they buy what insurance, insurance what have forgotten, not to mention the future to move to change the address, change the phone number, change the beneficiaries, and even some people want to renew the payment of premiums, found that they forgot to be when to pay the fees, payment of fees bound to the bank card, so it is very easy to cause the suspension or even lapse of insurance, if there is really an accident claims may not be able to claim. This will easily cause the insurance to be suspended or even invalidated, and if there is really an accident claim, you may not be able to claim. Therefore, we have to make an insurance follow-up memo to keep all the information filled in when paying the premiums, including: annual premiums paid (some consumer products have different annual premiums), debit bank and card number, home address, cell phone number, ID card expiration date, truthfulness, beneficiary column, whether it is a designated beneficiary or legal beneficiary, if it is a designated beneficiary, the beneficiary's order of benefit and benefit ratio, and the number and percentage of the beneficiary in the insurance policy. Beneficiary order and proportion of beneficiaries, in the column of whether the premium is advanced or not, whether it is selected to be advanced or not; all of the above need to pay special attention to these can be changed at any time, such as cell phone number changed, we should notify the insurance company in time to change, so that when the future payment of the premiums or the insurance company has an important matter, it will be able to contact us.
4) Notes on claims: the notes on claims are written on the contract, such as how to collect money at maturity, what information to bring, whether to collect online or offline insurance company's counter to collect; in the event of a serious illness, accident, death, how to report, what information to prepare, and what are the processes, and so on. In addition to pay attention to the choice of hospitals, to see what type of hospitals are stipulated in the terms, such as some insurance companies stipulate that the hospital is the second level or above, and some are the second level or above of public hospitals, these should read the terms and conditions before making some choice of hospitals, so as to avoid hospitalization, do not meet the criteria for hospitalization, the insurance company does not pay.
5) Must choose reliable senior insurance salesperson: first of all, he/she must have a sense of professional responsibility and professional ethics, love for the industry, principles and long-term commitment, and is standing in the customer's point of view to give a professional analysis of insurance needs and protection program recommendations. Nowadays, many people have opinions about insurance, in fact, they are influenced by some insurance salespersons who do not have professional ethics and principles. There is no such thing as a bad insurance policy, only that some insurance salespersons have sold insurance to people who are not suitable for it! Or they don't sell it according to the principle of scientific allocation of insurance! For example, the first up to recommend financial insurance to customers, the result is that the customer has a serious illness or accident did not claim, resulting in the customer is very disappointed in the insurance, think it is a scam. Therefore, it is particularly important to choose reliable sales staff, and another point is that, if you choose the right person, all the services of your policy in the future, including subsequent payments, change some information, the notes on claims, the choice of hospitals, reporting and so on, are all crucial.
I hope my answer can help you!
Buy insurance is nowadays most people choose the way of financial management, of course, in addition to financial insurance, there are some in order to "just in case" and the purchase of insurance, such as accident insurance, life insurance, and even some celebrities will be for their own body part of the accident insurance, we know the pianist Mr. Lang Lang, on their hands on the sky-high price of the insurance. So, what should we pay attention to when buying insurance? Simply put, it's about recognizing the good and the bad, and then choosing the right one. Let's explain in detail below.
I. Avoid buying insurance without planning ahead
As we all know, the terms and conditions of insurance are very numerous and complex, and sometimes you can hardly read the second page, but you may start to forget the content of the first page. Add to this the details of the various restrictions and regulations, one after another, some of which are so difficult to read that you may not be able to understand them if you don't put in a lot of effort to decipher them. Therefore, when you choose an insurance policy, you must plan ahead and find out exactly what it can cover, and what it can't; as well as under the conditions that can be covered, how long it can be covered, and how much you need to pay for it, etc., these are the most important questions that must be clarified first.
II. Avoid listening to others and buying from the crowd
Everyone has different pre-requisite needs and goals to achieve when buying insurance, and what they think is a good package may not necessarily be right for you. For example, a critical illness insurance policy may be suitable for A. Suppose B (who had an operation about a month ago) takes A's advice and buys a critical illness insurance policy, but fails to read the terms and conditions carefully, which state that the policy can only be bought if no major operation has been performed within three months. Even if B signs and pays for the policy, in the unlikely event of a claim, B will not be paid because his condition is not covered by the policy and he is not eligible for benefits. For B, this is a loss.
III. Finding the right formal agent
Insurance industry, from the industry environment, in fact, the threshold of entry is not high, which leads to some insurance agents because of the seniority is still shallow, so do not know a lot, some of the details of the insurance he may not be able to clearly understand and understand, so in the introduction of you, always say very vague, such as to and fro is what in case of illness do not have to worry about the cost of money, what the child's future education is guaranteed! And so on, but as for the real terms and conditions are not mentioned. Therefore, do not trust those insurance agents who like to speak eloquently, but can never get to the point, but should be as large as possible to find some enterprises, and also can, and also very can provide you with a detailed description of the contents of the contract of the insurance company as well as the insurance agent.
All in all, buy insurance must not follow the crowd, but should be based on your own needs and purposes to choose, not that the more money you spend, the more items insured, your rights and interests will be completely protected, after all, the main thing is to look at the terms of the insurance, you must carefully read, look at the provisions of this clause, whether the conditions of participation in the insurance is written clearly, as well as can be insured, what can not be insured. You must be careful and prudent, so that you do not find yourself in the end that you have spent money but do not get paid, how innocent.
Insurance in China is like a pyramid scheme. Before you go in, you get everything. After going in, there is less and less. First of all, it's the reduction of programs. Then it's the decrease in premiums. And finally, if you're going to die and look for him, is he any good?
Then we look at what the relationship between the insured person and the company looks like. You buy insurance to find an agent, the agent on behalf of the company or on behalf of personal will? If the representative agent on behalf of the concealment of the truth, counting the company's responsibility or earn the responsibility of the insurer these issues are into the objective existence, we can not say that he is in good conscience to sell you, but we can be sure. When the insurance company trains these people, they are handed this kind of tactics. In short the insurer is dishonest.
Sort out a few major issues to know how to buy insurance!
Question 1: What is the budget for insurance?
The Internet said that a reasonable premium (money to buy insurance) budget, is 10% of the annual income, I think this can only be used as a reference, can not be copied, to combine with their own income to determine. First of all, the annual premium, divided by 12 months, figure out how much money to pay each month, the pressure is not big, whether it affects the basic quality of life, this account must be calculated, do not want to buy insurance, every month to save money, engaged in the same as the ascetic monk, then it makes no sense. Buying insurance is in fact a betting game between retail investors and insurance companies, with the purpose of hedging risks. Even if I don't buy insurance, I will still save up for my own medical care in the future, and we all understand this.
For most office workers, it is more reasonable to take out 10%-15% of their income each year to buy insurance, and that money comes out by buying a few less luxury items and going to a few less nightclub bars. If you say, don't buy luxury bags don't go to nightclubs and bars, what's the point of me living, then take it as I didn't say it, I wish you a good journey.
Question 2: What are the types and functions of insurance?
Let's start with the seven essential life policies. These seven policies can be categorized into three tiers:
Basic Layer: Medical, Term Life, Critical Illness, Accident
Middle tier: children's education pension, old age pension
Top tier: Whole life insurance
Focusing on the base layer, the base layer is the most common and most immediate insurance we need.
I. Medical insurance
Medical insurance is reimbursement type, which means that you will be reimbursed for what you spend. It is used primarily as a supplement to Medicare. Medicare reimburses expenses covered by Social Security, and expenses not covered outside of Social Security are reimbursed through Medicare.
Medical insurance is also divided into five categories.
1. Outpatient reimbursement insurance
The reimbursement is for the usual outpatient visits for fever and cold. This part does not cost much and can be completely risky to keep, there is no need to buy this insurance.
2. Million Dollar Medical Insurance
The hottest medical insurance product in the market right now, this medical insurance is really cost-effective and features million dollar medical insurance:
1) Low premium, high coverage
A few hundred dollars a year, you can buy two or three million dollars of coverage. These products, solve the problem of not being able to afford to see a serious illness, no matter how expensive the disease, with it with health insurance, there is no fear of not being able to afford the treatment.
2) Most products do not guarantee renewal
Most million dollar medical insurance policies are one-year policies and do not guarantee permanent renewal. This means that if you get sick this year and don't get better, the next year the insurance company has the right to deny coverage because you are no longer healthy and you won't be able to get coverage anymore.
Insurance companies also try to promise renewals in order to attract customers, and the best million dollar medical insurance policies are currently guaranteed to renew for 6 years. When purchasing, be sure to buy one with lenient renewal conditions.
3) Most products have deductibles
Most of the million dollar medical insurance policies on the market have varying amounts of deductibles, mostly around 10k. The so-called free amount of 10,000 means that up to 10,000 dollars will not be reimbursed. It is only reimbursed if it is more than 10k. So Million Dollar Medical Insurance is mainly against the risk of major illnesses.
3. Mid-range medical insurance
It is difficult to queue up and register at ordinary hospitals, and you can't afford to go to private hospitals, so you can buy a mid-range medical insurance policy. A few thousand dollars a year will allow you to go to the special needs department of a public hospital or some private hospitals. Mid-range medical insurance is characterized by a low deductible, and some products can achieve 0 deductible. Both major and minor illnesses can be reimbursed, and since the premiums are also higher in comparison, most middle-class families will consider buying one.
4. High-end medical insurance
High-end medical insurance, with premiums in the tens of thousands of dollars per year, allows you to go to the special needs and international departments of domestic hospitals, as well as private hospitals, and allows for direct payment. You can also go to private hospitals, and direct payment can be realized. That is to say, you can just swipe your credit card directly when you arrive there. The more high-end ones can go to the United States and Japan, countries with more advanced treatments, for treatment abroad. Rich people or employees of foreign companies will buy this kind of insurance to enjoy high-end medical services.
2、Term Life Insurance
Life insurance is referred to as life insurance. It is a life insurance that takes the life of the insured as the subject matter of insurance, and the survival, total disability or death of the insured as the condition of payment. Life insurance can be divided into one-year life insurance, term life insurance, and whole life insurance.
One-year life insurance coverage for one year is relatively inexpensive, but because you need a health notice every time you buy it, in case your health changes in any year, renewal for the second year is a problem. And the premiums are increasing with age, it just gives the impression of being cheap when you are young.
Whole life insurance covers the whole life, so the insurance company's responsibility to pay benefits is certain, what is not certain is only the time sooner or later. So premiums are more expensive compared to term and one-year, general user wealth inheritance and asset planning.
Term life insurance is a policy where the customer is insured for an agreed upon period of time, during which the insurance company assumes the responsibility of paying benefits in the event of the death of the insured.
For more than 90% of families, the best thing to buy is term life insurance.
The function of a fixed life is to resist, at an age when you are the breadwinner of the family, the risk of passing away. When you get old and are no longer the breadwinner, the fixed life will expire.
Term life insurance coverage = loans at home (mortgage, car loan) + money needed to support children + money needed to support parents
It's all about how much liability there is and how much insurance there is.
III. Critical illness insurance
Critical illness insurance is a payout type, which means that as soon as you have a critical illness, the critical illness insurance will give you the money in a lump sum. You can use it for treatment, subsequent rehabilitation and living at the discretion of the insured.
Many people don't understand critical illness insurance and feel that if they get sick, social security and Medicare will reimburse them, so what's the point of having critical illness insurance?
Critical illness insurance is actually a form of "loss of work income insurance". A serious illness down, plus the recovery period is always two or three years, in which there is no source of income, not to mention, living expenses, nursing costs, rehabilitation costs is a considerable amount of money. The critical illness insurance is diagnosed and will pay out, will give the patient a sum of money at the beginning of the disease, not only to alleviate the financial pressure on the patient, but also to help the patient to recover.
When you buy a critical illness, there are two things to grasp at the core: the sum assured and the duration of coverage.
Prioritize coverage. Critical illness insurance is all about the sum insured, and an insufficient sum insured is likely to be ineffective at a critical time. Critical illness insurance coverage = 3-5 years of household expenses + rehabilitation and care costs ≈ 500,000 dollars.
Go for longer coverage while ensuring that the sum insured is sufficient.
The types of critical illness insurance have the difference between short-term critical illness (insured for one year) and long-term critical illness, and long-term critical illness also has the option of insuring up to age 60, 70, and lifelong insurance. According to the actual budget, you can adjust the coverage period in the sum insured, the more the budget, the longer the coverage period you choose.
On the basis of the above two, then consider the number of critical illnesses covered, the inclusion or exclusion of minor illnesses, single or multiple benefits, which are less influential factors.
IV. Accident insurance
Definition of accident: an external, sudden, unintended, non-illness objective event.
1) Accidents need to be sudden, so heat stroke and the like are not covered. Heat stroke is considered avoidable to some extent, not sudden.
2) Accidents need to be external, so sudden death and the like are not covered. Sudden death is a disease, caused by changes in one's own bodily functions, and is internal.
3) Accidents need to be unintentional, so suicidal self-inflicted injuries are not covered. Like the insurance fraud case a while back, intentionally driving a car into a river and the insurance company finding out is also definitely not covered.
Of course what should be compensated will still be compensated, our common traffic accidents, drowning, electrocution, burns and scalds, falls, etc., all meet the definition of accident, accident insurance are compensated.
In terms of type, there are two types of accident insurance: one-year accident insurance and long-term accident insurance.
One-year accident insurance to pay a year to insure a year, long-term accident insurance coverage period longer, but more expensive than the price of one-year accident insurance is quite a lot. Accident insurance health notification is particularly loose, as long as now is not a serious disability, can buy. The effective time is also fast, the fastest the next day, the slowest one week will be effective.
Accident insurance coverage is generally categorized into accidental death, accidental disability, and accidental medical liability.
The insurance company pays a death benefit in the event of the insured's death as a result of an accidental injury.
If the insured person suffers an accidental injury resulting in a disability, the insurance company will pay a disability insurance benefit according to the degree of disability.
When the insured person suffers from accidental injury and incurs medical expenses, the insurance company will pay a proportionate amount according to the actual situation.
Accident insurance premiums are low and generally age-neutral, so no matter how old or young you are, or how much you earn, you should have an accident insurance policy for yourself.
Accident insurance is a return to the essence of insurance protection, is the basis of insurance product configuration. You can avoid big risks by spending a small amount of money through an accident insurance policy, and really play a huge leverage role of insurance.
Question 3: How should I allocate insurance at various stages of my life?
Different stages of life are characterized by different characteristics, so how exactly should people of different ages buy insurance?
Let's look at the first stage first, 0-18 years old, what should I do to insure my child?
Suggested insurance allocation: medical insurance + accident insurance + critical illness insurance.
First of all, the national health insurance must be paid, followed by the need for commercial medical insurance as a supplement. After all, it's common for children to get sick, especially if you buy insurance that pays for outpatient care and has a low deductible.
For accident insurance, how can you not protect your baby against the risks of falling out of bed just when he or she can roll over, plus burns, electrocution and so on? That's why having a good children's accident insurance is a must.
Besides, critical illness insurance, there is just one reason to buy critical illness insurance in my opinion, with small children and cheap premiums, it is the best time in your life to buy critical illness insurance.
Is life insurance personally unnecessary? To put it bluntly, if a child does pass away, there is no financial loss to the family, but more of a mental toll, and the insurance serves more as financial protection, so for life insurance, it's not necessary.
There are also a lot of parents who are now buying education funds for their children when several of the above insurance policies are not yet in place. To put it bluntly, if you are not poor and have a lot of money, buy it. If you are short of money, don't buy it.
How to buy insurance for the second stage, 20-30 years old, young people who are just entering the society?
Suggested Insurance Allocation: Critical Illness Insurance + Medical Insurance + Accident Insurance + Term Life Insurance
Health insurance is undoubtedly a must-have, and it's certainly the first thing that comes to mind when most people think of buying insurance, so there's not much to explain here.
Accident insurance for young people is a must for two reasons, one is that young people always like to toss and turn, they have to have a higher probability of having an accident than other age groups. Secondly, accident insurance is very cheap, very little money can pry up very high leverage. More reliable than buying a lottery ticket.
Critical illness insurance: At this stage, although you are in good health and have a low likelihood of suffering from a serious illness, it doesn't mean you don't need it. There are three reasons: First, this age is relatively cheap to insure critical illness, you can choose a cost-effective product. Secondly, this time the body is healthy, it is our choice of insurance, and so on after 30 years old, many people will have more or less physical problems, it is likely to affect the insurance of critical illnesses, it is really in the sense of not letting the insurance without insurance. Thirdly, if a serious illness really occurs at this time, the individual does not yet have enough savings, the need for the family to pay for medical treatment, will bring a burden to the family.
Term life insurance: for no other reason than, solely because, when you buy it at this age, it's cheap, highly leveraged, and a better time in life to buy life insurance.
There is also the fact that insurance is the process of multiple configurations, this age group of young people, more money to do something more meaningful to life, of course, this is not to deny the importance of insurance, but only that equipped with the basic protection, do not need to one-step, you can wait for a few years, the income increases and then add insurance.
Stage 3: How to pick an insurance policy when you are over 30 and have a family?
When a person starts a family, there are more burdens on him. Especially when living in a big city, the pressure is even greater, with an old man and a young man at the top, a high mortgage and car loan, long-term work pressure, bad habits, and more and more health problems.
Imagine, as the breadwinner of the family, if you are unfortunate enough to become seriously ill, your source of income will be cut off, and if you are unfortunate enough to pass away, who will take care of your family and children, and who will pay for your mortgage and car loan?
Therefore, the insurance allocation recommendation: term life insurance + critical illness insurance + medical insurance + accident insurance
Term life insurance must be equipped, you are now the breadwinner of the family, if you unfortunately pass away, your parents, children, mortgage, car loan how to do, so must buy a high amount of term life insurance, so that even if unfortunate, but also can leave a huge sum of money to ease the pressure of the living, must be equipped.
Critical illness insurance is purchased at this time to compensate for the loss of financial income in the unfortunate event of a serious illness resulting in an inability to work for three to five years, so it is essential to have it in place.
Medical insurance is now clear that it reimburses the expenses needed to treat an illness and must be equipped.
Accident insurance, low premium, high coverage, cost-effective, recommended to have.
At this stage, any accident or illness we have is destroying a family, so the above mentioned insurance policies, all of which are the most basic insurance program configuration, are recommended to be equipped with, and if the income permits should make the coverage as high as possible.
Stage 4: How should middle-aged and older people over 50 buy insurance?
After the age of 50, many people enter a period of career stabilization, the intensity of work is not high, and children are older, many people are planning for retirement.
I thought I had reached a secure retirement period, but in fact, ah, this stage is still quite difficult to buy insurance, there are two main thresholds: one is age, the second is health.
When you're young and in good health, it's the person who picks the insurance; when you're older and in poor health, it's the insurance that picks the person.
If you are still in good health, insurance allocation recommendation: Cancer insurance + medical insurance + accident insurance
If you are not very healthy, and many medical insurance policies are no longer available, the insurance configuration suggests: Cancer insurance + Cancer medical insurance + Accident insurance
At this age it would not be cost effective to have critical illness and is not recommended. If you have a large sum of money to pass on to future generations, consider buying life insurance. If there is no need for this, there is no need to buy it.
The insurance recommendations above are the most desirable and basic insurance for the appropriate age group.
Question 4: How do I choose cost-effective insurance?
medical insurance
Medical insurance is a one-year short-term insurance, that is to say, pay one year to insure one year, the main function is used to supplement the social security reimbursement. Especially in the event of a serious illness, after the social security reimbursement, there is still a large amount of money not yet reimbursed, this time can be reimbursed through the medical insurance.
The most important thing to consider when buying medical insurance is the renewal terms and conditions, and the number of years of renewal.
The best renewal conditions on the market today, the second year of renewal without reviewing your health conditions, that is, the first year of the disease occurred, the second year you can still continue to insure, and then sick still give you claims. If you need to review your health conditions during the renewal process, you should not buy it.
Renewal years, the OCI clearly stipulates that this short-term type of insurance can not promise users to guarantee lifetime renewal, because short-term products can be discontinued at any time, and some products bought by fewer people or excessive loss of capital, the insurance company is able to discontinue this product. So all the claims on the market that can guarantee lifetime renewal are for marketing bullshit, and this kind of publicity illegal regulatory provisions. Currently the maximum number of guaranteed renewal years is 6 years. So try to buy the kind of medical insurance that is popular because more people buy it and it is less likely to be discontinued.
Medical insurance should always be bought from a product that has a local branch of the insurance company, as it will be easier to follow up with claim services.
critical illness insurance
Critical illness insurance is a payout, which means that it gives you a lump sum of money whenever you have a critical illness. You can use it for treatment or other things.
Critical illness insurance must be bought on a consumer basis, not on a return basis. This is because buying return means that you have to spend more money for the same amount of coverage. Or the same amount of money to buy less coverage. Buy critical illness insurance do not forget your original purpose, if in order to want to return, then you might as well just take that extra money to financial management, even if it is to deposit the bank, you will find a higher return.
The conditions for claiming for critical illness insurance are clearly stated in the contract, and as long as you meet the conditions, you will be paid. So don't worry about the size of the insurance company, popularity and all that. Just look at the coverage and premiums and you're done.
You do not have to compare and contrast, direct knowledge of a search, the whole network to push some of the insurance are not a problem, buy any one of them are not a problem, do not be there in order to a difference of a few dozens of hundreds of dollars a year in the counting to and fro. Remember one thing, the whole network are dissed must not buy.
term life insurance
The function of fixed life is to resist, at an age when you are the breadwinner of the family, the risk of passing away. When you die at a young age, you leave behind a bunch of responsibilities, and who is going to fight them for you, so it's a good idea to die leaving a sum of money to wipe your ass.
Fixed life is in the coverage period, such as to 60 years old, to 70 this time, you die to pay money. Insurance liability is very simple, the focus is to pursue the same amount of coverage, the lowest price of insurance products on the line.
accident insurance
Accident insurance to be honest, this responsibility is still very complex, especially comprehensive accident, not as imagined is a very simple insurance. If you don't know, and can't find someone who knows to guide you, then you should buy a special accident for whatever you want to insure, such as a short-term outing for self-driving.
Buying an accident must look at the responsibility of the coverage is not what you want, do not have wanted to buy a focus on accidental medical, and then bought a only cover accidental death and disability.
Children's education, pension
It's all bullshit to say that these two insurance policies have only two functions, to force savings and to eat interest.
Compulsory savings means that once you put your money in, you can't withdraw it for a short period of time. It's not that you won't be allowed to withdraw it, it's that you'll lose money if you surrender the policy, so it's not easy to surrender the policy. It's good for people who don't spend money in a controlled way, who have been doing well lately, but won't necessarily do so in the future. Forces you to save money.
Eat the interest and don't look at how much money you'll get back for how many years you put your money in. The size of that number may surprise you and make you think it's so lucrative, it's damn good. But in fact, the appreciation of money is generated by constantly eating interest. And that interest rate isn't very high. But it's higher than banks. If you're confident that the money put in your hands can be kept from being spent, and the annual appreciation rate is higher than it is, you don't have to buy these things at all. But basically everyone can't meet those two conditions. That's why pensions came about. Its function is to steadily increase in value and help you plan your money.
So both types of insurance are whichever works out to have the higher interest rate, which means whichever ends up taking more money, it's that cheesy.
whole life insurance
Whole life insurance is where you are sure to get the money because you have to pass away sooner or later and can't stay alive. This is the difference with term life insurance. Because the money is received by future generations, customers of whole life insurance buy this insurance for property inheritance.
Buy this insurance, if the sum insured is not millions, do not buy, a total of assets on the small hundreds of thousands of dollars, on the current society, is unlikely to produce any inheritance disputes and so on.
Whole life insurance, its used less like insurance and more like an asset planning tool. It's usually the rich that do the buying of this stuff.
Other financial, participating, universal etc. insurance
Personally do not recognize that they are not essentially insurance, is hanging sheep's head, selling dog meat, should be called financial products. Just simply want to buy insurance, please stay away.
Read the OP and reorganize your thoughts before deciding how to buy insurance.
Many of my friends have encountered this or that problem when buying insurance, and I have summarized 10 points for your reference!
I. Don't keep waiting and waiting.
You can wait until you have the money, until your kids graduate, until your burden is smaller, but will accidents and illnesses wait?
Especially important is the fact that if something bad happens, you'll be dragging your kids, loved ones, and mom and dad down because you don't have the money! You will make life harder for your family by not having adequate coverage! Mortgage to pay, life to live ......
Why is it that "no matter how busy you are at work, you should take the time to get insurance, after all, it's much easier to insure $500,000 than it is to earn $500,000!"? After all, it's easier to insure 500,000 than to earn 500,000! It is because insurance in the role of risk leverage, can be one for ten, one for a hundred!
Second, don't just count the benefits
"Insurance is called insurance", insurance is not savings, not financial management, its main role is risk protection! And can be calculated that is never called risk!
So don't compare insurance to other financial products for returns! What insurance can do, none of them can do! For the same $10,000, who can guarantee to give you $500,000 in the event of a major illness as long as you have just saved for 1 year? Only critical illness insurance can! For the same $10,000, who can guarantee a million dollars for your family in the event of an unfortunate death due to illness or accident? Only term life insurance can!
Thirdly, don't just listen to hearsay.
People say insurance is bad and a "scam", but if you get sick or have an accident and need $300,000, who can give it to you and not have to pay it back?
If you give him $10,000 a year, can he guarantee it:
1. In case of a serious illness someday, you must be the first to come up with $500,000 for your medical care;
2. In the event of an accident, you must be responsible for the resulting medical expenses and consequences;
3. In the unfortunate event of death, a lump sum of 1 million dollars must be given to your family as retirement money for your parents, education for your children, and repayment of your mortgage;
4. If all is well and there is no illness or disaster when you reach the age of 60, you must be given a specified amount of old-age money every month until you reach old age peacefully, without dragging down any of your children!
IV. Don't believe in verbal promises
Whoever said that this insurance product has a particularly high return, but have you read the insurance contract? What is written in black and white is true!
Therefore, as consumers, you must read every insurance contract carefully and be responsible for yourself!
Fifth, don't open your mouth to ask for a rebate
The person who is giving you the commission is definitely not a good insurance professional, are you comfortable with him? And that's illegal!
This kind of behavior is typical of "giving or promising to give the policyholder, the insured or the beneficiary insurance premium rebates or other benefits other than those agreed in the insurance contract;" "giving or promising to give the policyholder, the insured or the beneficiary benefits other than those agreed in the insurance contract ", Article 116 and Article 131 of the Insurance Law expressly prohibit, once found to be verified, a light fine, or industry ban. And your policy becomes an orphan policy, it is likely that because of poor docking, broken premiums and other circumstances, the contract lapses, you covet a few thousand rebates, the loss may be dozens or even millions of claims!
Sixth, don't just count on too high a sum insured without doing premium planning
How much insurance to buy depends on a combination of income and expenditure, family responsibilities and protection gaps! Deliberately asking for too much coverage without premium planning is likely to affect the quality of life or even fail to pay the premium and surrender the policy!
It is important to realize that, in general, the premium payment for long-term insurance is usually as long as 10, 20 or even 30 years, and it is a process that cannot be interrupted. So how much insurance to buy must be based on their current income and expenditure and future income expectations, generally speaking, the annual premium expenditure of 10% - 15% of the annual income of the family can be.
VII. Don't put it on the shelf
Some friends buy an insurance policy and just put it aside, or even forget to pay the premiums, causing the policy to lapse!
Once you have bought an insurance policy, you should not leave it unattended, but remember to make regular payments! Ensure that the card tied to the insurance company has a sufficient balance! Regularly review the terms and conditions of the policy every year, for example, whether there are any changes in the personal information of the policyholder and the insured, and whether there are any changes in your home address and contact information. Keep your contact details with the insurance company open. If you find that your policy has lapsed, you should go to the insurance company for reinstatement of the policy to ensure that it is reinstated and you can enjoy the protection of the insurance.
For those who have purchased more than one insurance policy at home, it is recommended to make an "insurance checklist", listing the payment time, policyholder, beneficiary, benefits, insurance proceeds, payment account, customer service phone number of the relevant insurance company, telephone number of the insurance consultant and other important information of each policy, so that when you do the "annual inspection" of the policy in the next year, you will be able to see at a glance. "This is so that when you do the annual inspection of your policy the following year, you can see at a glance.
Eight. Don't stay the same.
What kind of insurance to buy and how much coverage to buy must change according to the actual situation of individuals and families! Different life stages have different incomes and expenses and different responsibilities!
The fundamental function of insurance is to protect, its role is to make up for the family's financial losses when the risk comes, to maintain the original quality of life. For example, when a child is added to the family, consideration can be given to adding protection for the newborn, and if the family has increased the loan to buy a house or a car, consideration should also be given to increasing the corresponding amount of insurance to transfer the risk, especially to ensure that the amount of insurance can reflect the value of the life of the family pillars and the family's responsibilities.
IX. Don't surrender your policy blindly
1. No more coverage (this one is important);
2. You will lose money (the insurance company is not refunding your premiums, but the cash value);
3. Even if you re-insure, you will usually be subject to higher premiums, another medical examination or even denied coverage!
Of course, if you consider surrendering your policy due to financial pressure, you can try the following ways to relieve your financial pressure and maintain the validity of your policy: make reasonable use of the grace and reinstatement periods of your policy; pre-select the automatic advance payment of premiums clause; choose to reduce your policy or reduce the amount of premiums to pay off your policy; and pledge your policy for a loan.
X. Don't miss the opportunity to report a crime
Always remember to report the accident at the first time, it is very necessary for claims! With-profits insurance should remember the expiration date, do not let your money sleep!
Article 21 of the Insurance Law: The insured, the insured or the beneficiary shall notify the insurer in a timely manner after knowing that an insurance accident has occurred. If the insurer intentionally or through gross negligence fails to notify the insurer in time, which makes it difficult to determine the nature, cause and extent of loss of the insurance accident, the insurer shall not be liable to pay compensation or insurance premiums for the undetermined portion of the insurance accident, unless the insurer has known or should have known of the occurrence of the insurance accident in time through other means.
In summary, we have explained some of the dos and don'ts of buying insurance, and we hope that you will make sure to avoid these problems when buying insurance.
I see that a number of owners have answered you and answered you well. I'll be brief:
1. What is the demand?
This determines the shape and content of your product, there are as many types of insurance as there are small appliances, there are fans, air conditioners, air fryers, refrigerators, etc. Each has a different function, different needs and different coverage.
2、Product Precautions
Settled the demand, we look for the product, the product (we call it a policy) has a significant interest in the impact of the liability and exclusion of liability part, to put it simply, in the event of insurance, what is covered, what is not covered. It's all in bold and the product plays a duty to inform and explain the contents of the duty.
3. Independent completion
Rely on yourself to understand, to know and to buy a product that you feel familiar with. Because the rules of insurance are still unfamiliar to the layman, it takes some time to learn them.
The five principles of scientific insurance: first adults, then children; first planning, then products; first sum assured, then premiums; first protection, then financial management; first personal, then property.
For most families, the idea of insurance configuration is basically the same. As long as you master the five scientific insurance principles mentioned above, you can take many fewer detours when configuring your family's insurance.
"Buy insurance for your children first" is a concept that exists in many families. According to a survey, about 80-90% of families have bought insurance for their children. But the vast majority of parents in these families have not bought an insurance policy for themselves.
Parents may think that children do not have the ability to protect themselves, so they should be insured first. The love of children is understandable, but people overlook the most important point: parents are the best insurance for children. For a child, an accident to the parents is the biggest risk.
For example, in the case of a serious illness, adults outnumber children in terms of the probability of contracting a serious illness. In case a child suffers from a serious illness, there are still parents who can earn and raise money. But if the parents fall ill and the family's financial income is cut off, what will happen to the child?
In addition, children's premiums should not take up too much of the family's premium budget, otherwise it will be difficult to provide adequate coverage for the parents. So it is important to be careful about purchasing insurance for your children until you have adequate coverage for the adults.
Nowadays, many families are "product oriented" when it comes to allocating insurance: they start by obsessing over the choice of product, without considering what kind of protection they need.
This is a very wrong idea! If you blindly take out a policy without seriously understanding what you need to insure, you will only be spending a lot of money and not getting the protection you deserve.
Insurance is a tool to transfer the financial risk of a family. The actual situation of each family is different, and the risk it faces varies. The correct and reasonable way to take out an insurance policy needs to take into account the family's income, budget, staff structure, and their respective health conditions. So buying insurance must be a matter of planning first, then product.
For example, for the same family with an annual income of $300,000, one has a mortgage, car loan, has a second child and has a small balance in a year. The other family is not in debt, practicing Dink, do not have to worry about children's education, a year down, the balance is sufficient. Although the annual income of the two families is the same, but the family's financial situation is different, the insurance budget is different, and the focus of the configuration of the insurance will also be different.
Therefore, to buy insurance must recognize the actual situation of their own families, choose the right insurance products. Do not fall into the "this insurance product is good, that insurance product is not good" circle.
To put it bluntly, you buy insurance for the amount of coverage.
Buying an insurance policy is all about making the most out of a small amount, the higher the leverage the better, that is, spending the least amount of money to get a higher amount of claim. So when taking out an insurance policy, make sure that the sum assured comes first, then the premium. A low sum assured will not fully cover the risk gap.
For example, someone who wants to buy a critical illness insurance policy buys a critical illness insurance policy with a coverage of only $100,000 in order to lower the premium. At present, the average cost of treatment for serious illnesses in China is about 300,000 yuan. If he suffers from a major disease, the $100,000 benefit is a drop in the bucket compared to the hundreds of thousands of dollars of treatment costs. In that case, what is the point of buying insurance?
There are several reasons why people are generally underinsured when they take out insurance:
1) Overly concerned about critical illness insurance that covers you for life
With a low budget, the only way to get insurance that covers you for life is to reduce the amount of coverage.
For this group of people, who are on a tight budget, you can choose to buy a term critical illness insurance policy with a high sum assured, for example, up to the age of 70, to ensure that you are adequately covered before then.
2) Prefer returnable critical illness insurance
Many families choose to take out a critical illness insurance policy with a return of capital in order to get a 'bargain'. However, the cost of the return is that the insured amount of this kind of critical illness insurance is very low.
At present, there are many domestic insurance products, even if the budget is limited, as long as the reasonable planning, you can choose a high amount of protection products.
The concept of "insurance as insurance" advocated by the China Insurance Regulatory Commission (CIRC) has brought insurance back to the essence of protection. The main purpose of purchasing insurance is to obtain a high level of protection and transfer the risk of personal or family financial loss.
The safest model for the protection pyramid is health protection (critical illness, life insurance, accident, medical) first, followed by retirement protection and children's education, and finally financial planning.
As a matter of fact, many people are keen on buying investment and financial insurance. For example, after the crash of flight MH370, there was a report that the insurance company had examined the insurance policies of all the passengers on board the plane and found that a passenger who had paid a lump sum of $200,000 for a financial insurance policy before the crash was only able to pay out $210,000 after his death.
If you take out $100,000 to buy protection insurance, the claims left for your family can amount to tens of millions of dollars. It is important to realize that in all investment and financial management, capital preservation is the most important, but the most fundamental is life preservation. And protection insurance can ensure that in the insured person in the accidental disease or even leave, can let the family get a considerable amount of compensation amount, to do "have a doctor, disability have to rely on, leave some stay", to ensure that the quality of life will not be reduced in the future.
So, when you are buying insurance, make sure that you have the most basic coverage first, and then you can consider other types of insurance.
Now there is a very strange phenomenon, many people have not configured their own insurance, but to the car with a variety of insurance, for fear of accidents can not be reimbursed.
On top of that, there are many business owners who will take out property insurance for their business and fail to take out life insurance for themselves. These are actually putting the cart before the horse.
People are the creators of wealth, and without their preservation, the accumulation of wealth is not possible. For the family, the protection of the person is the most important and should be the first concern. Therefore, when you buy insurance, you must do it first for your person and then for your property. Cars and houses can be re-bought if you lose them, while life is priceless and you only live once. In case we don't have enough budget, we must buy suitable and sufficient protection for ourselves first.
With the complexity of insurance types, awkward and difficult to understand clauses, and the plethora of products available in the market, it is important to understand the basic principles of insurance planning before allocating coverage for your family! This is the prerequisite! Only in this way will everyone's thinking be clear and unambiguous when faced with the complexity and variety of products on the market, and many of the problems of taking out insurance will be solved.
Hello, I'm Sister Paul Love Life and I'm honored to answer your question.
Buying insurance do's and don'ts:
I. Must do a needs analysis
1、Simply some understanding of insurance, such as what kinds of insurance, which ones insure people and which ones insure things?
If you are a policyholder, there are roughly 4 types: critical illness, medical, accident, and life insurance.
2, to understand what each insurance policy covers and what role it can play.
3. Analyze the current situation: family structure, work situation, income status, health, existing protection, liabilities and so on.
4. What are your biggest concerns? Income disruption or health risks or children's education or future retirement, etc.
5. Which insurance policies help you the most?
II. Collection program
Note: how much money can be put aside for insurance in a year, what is the sum insured, how long is the payment period, and how long is the coverage period
III. Identification of products
1. What is the responsibility to protect
2. What are the exemption clauses
IV. Insurance
1. Re-confirm the product, payment period, coverage period, annual premium and other information
2, health information, occupational category, height, weight, annual income and other information asked by the insurance company must be filled out or informed truthfully
V. Signing for the policy
1, regardless of whether it is an electronic policy or paper policy, if it is a long insurance will have a return visit (phone call back or WeChat call back), for the return visit of the problem must be taken seriously, and reconfirm the insurance responsibility and liability exemption.
2, to understand once again the claims reporting process, do not wait for the real accident, hand and foot do not know who to look for.
Ok, answer over, the above is all I can think of at the moment, hope it helps!
Buy insurance need to keep your eyes peeled, do not blindly follow the trend to buy, everyone's physical condition is different, only can buy is suitable for you!
You need to look at three things before you buy insurance: 1. Notice of insurance; 2. Health notice; 3. Coverage
Priority is given to the main income earner of the family; the order of allocation is critical illness, then medical insurance, accident insurance, and finally fixed life.
I'm Cat, an insurance broker who has been in the insurance industry for many years and has done insurance configuration programs and answered insurance questions for tens of thousands of friends.
Insurance is still quite specialized for most people, so I'll take an example and try to speak in human terms so that everyone understands~.
30-year-old Mr. Xu's family lives in a second-tier city, his wife is an elementary school teacher, although all the benefits are not bad, but the salary is not high. A year counted the couple's total income of about 100,000 yuan, and there is a son, 8 years old, just started elementary school.
Both husband and wife are the source of financial income for the family. If one of them is unfortunate enough to suffer from a serious illness, not only do they have to face the pressure of treatment costs, but they also have to face the predicament of loss of income, and the day-to-day care of their children is even more of a problem.
Doing a program for Mr. Hsu's family, I would follow this line of thinking:
1. Fixing the budget
If you follow the concept of the famous Standard & Poor's Family Asset Allocation Chart, some salespersons will advise their clients to use 20% of their income to buy insurance.
This theory does exist, but it is inevitably too rigid in the face of real family situations.
For example, if Mr. Xu's family buys insurance at 20% of their annual income, they would have to spend $20,000 a year. Although there is no mortgage or car loan debt, but the children's school and the family's daily expenses, 30,000 yuan is too much pressure.
I would generally recommend: no more than 10% of your income for insurance (if you have a mortgage or car loan you need to deduct it first).I would keep the cost of insurance for Mr. Hsu's family to about $10,000 dollars.
2、Determine the demand
Any family, surely, is based onPing An HealthFor the first place. That's why in the programs I do, I don't consider financial insurance for the time being when the client doesn't have any health coverage base.Risks such as: death, illness, accidental disability, etc. must be transferred first for the entire family to be strong.
Health insurance is divided into these categories:
Disease is the most common and greatest risk of breaking down a family.Critical illness and medical insurance is exactly what you need to deal with high medical care and loss of family income.Therefore, both Mr. and Mrs. Hsu are the financial resources of the family, and there is no shortage of them.
In addition, I would recommend life insurance for Mr. Hsu.Being the biggest breadwinner in the family, once he passes away, raising children, supporting the elderly, and the financial expenses of the family will put great pressure on the loved ones. Although the life insurance payout cannot compensate for the emotional pain, it can at least help the family tide over the financial difficulties.
Accident insurance is inexpensive andFor $200 a year, basic accidental risks can be covered in place, and it's well worth it.
而For children.Originally playful by nature, but prone to falls, sprains, burns, bites from small animals, and so on.With a limited budget, you can pair it with a cost-effective school level insurance policy.
Some schools will make it mandatory for students to buy one, so there's no need to buy a second one if you've already bought one, but look at the coverage, as some coverages will be missing or the deductible will be too high.
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