The risk management ratio is based on 60% of annual income for living expenses, 30% for investment and wealth management, and 10% for risk management, so that newcomers in the society can accurately use low premiums as high-protection golden rule insurance products in the early stage of career development, and give full play to insurance Substantial meaning and function, nor does it affect financial security.
Ke Yiqi also reminded policyholders that the “sandwich group” and “loan group” do not apply to the Double Ten Principles, because there are children in the upper house and children to support, and the family responsibility is heavy, so life insurance protection must be improved. If she has a client of Wanli, her father’s annual income is 600,000 yuan, two children are 7 and 5 years old, the monthly living expenses are 20,000 yuan, the parents’ filial piety allowance is 10,000 yuan, and the mortgage loan is 4 million yuan. She can analyze the family responsibility needs through financial consultants. Afterwards, the life insurance coverage is 13.6 million (as shown in Table 1). If evaluated by the double ten golden rule of insurance, the coverage is only 6 million, which is still less than 7.6 million. In addition, the public is reminded that in the Double Ten Principles, insurance refers to pure insurance, and composite functional insurance such as investment, savings or principal repayment is not included.
Liu Yihui, a financial consultant at Gongsheng Financial Consultants, said that the purpose of insurance regulations is to allow policyholders to transfer risks and reduce the serious impact on the family economy when an accident occurs. Therefore, it is not only about the level of income, but the amount of insurance will also vary from person to person. different. Liu Yihui gives another example. Taking two clients with similar annual incomes, client A is married, lives with his parents, has three children, and is the sole breadwinner of the family, with an annual salary of 3 million yuan. The “Golden Principle” policy is 30 million yuan, but the mortgage is as high as 15 million yuan. In case of unfortunate death, the remaining compensation after paying off the mortgage is not enough for the parents to live in peace, nor for the 3 children to grow up without worry, so 3000 The insured amount of 10,000 yuan is not enough to support the needs of the family. Another client B who is celibate has an annual income of nearly 3 million yuan, but he has no other responsibilities other than filial piety to his parents, and the insured amount does not need to be planned for 30 million yuan.
Liu Yihui suggested that the public should evaluate and plan the insurance amount based on the amount of responsibility. After paying the insurance premium, the family must still have the ability to save or invest. Under the limited insurance premium budget, use the characteristics of different insurance types to improve the insurance amount demand. At the same time, it is also necessary to review the insurance policy in a timely manner according to the needs of different stages. If the young and Zhuang people are the main source of income for the family, the insurance amount planning must meet the risk needs; if they are retired, the children grow up, and the mortgage is paid off, part of the insurance premium can be transferred. Invest in a retirement policy or other investment to keep yourself happy and enjoy your retirement.
IUL-indexed universal insurance is definitely a good product. However, in the United States, it may still become a big pit. The uneven quality of companies and employees is one aspect. There are not many public materials for users to learn and refer to, and the lack of professional experience guidance is another aspect. Therefore, how to meet your needs, make good use of IUL, and achieve the goal of ensuring high returns and almost risk-free wealth growth under low liquidity is a daunting task.
From another point of view, universal insurance products have the characteristics of “very flexible”. This means that customers have a wide variety of options and configuration methods. There is also no uniform standard for policy design. This is completely different from buying something online. You have to understand the basic principles, covenants and options of index universal insurance, and at the same time, be very clear about your needs. At this time, when you communicate with professional brokers, you can play the ultimate effect of this product.
This process sounds very complicated. Do you have any simpler experience? Forbes magazine published an interview in which the author asked Tom Murphy, chairman of Murphy Financial Group in New York, who specializes in IUL indexed universal insurance, to teach readers his rules of thumb for buying indexed universal insurance.
Here are 4 golden rules for investing in an indexed universal life insurance policy
Choose a Broker Over an Insurance Company
Being superstitious about the internet can get you into trouble when it comes to choosing whom to trust. Everyone speaks their own words on the Internet, and anyone can publish remarks or articles of almost any position. Infinite companies even try to convince you to make hasty decisions under the guise of helping you, shopping for the cheapest and saving money. Rather than tell you the basic knowledge and principles of this product in detail. Although called universal insurance, it is not for everyone.
“For consumers, the good side is that when purchasing IUL products, they have a lot of choices; the bad side is that they face too many choices next.” Murphy Financial The chairman of the group commented.
The author of the article fully agrees with this point of view. That’s why we’re making this point: It’s better to find your own broker than to go shopping for all the insurance companies on your own. Find a broker who specializes in IUL products, not a hodge-podge broker for term life or participating universal insurance, clarify your needs with the broker, or discuss the actual situation together, and finally, let your broker buy the design A policy that suits you.
Keep in mind that a professional, good independent broker is directly related to the quality of your policy.