What Is Whole-Life Cost?

Lifetime insurance refers to irregular death insurance. After the conclusion of the insurance contract, the insurer shall pay the insurance premium whenever the insured dies. As long as the insured pays the insurance premiums on time, the insurer has no right to refuse to renew the insurance. According to the different ways of paying insurance premiums, life insurance is divided into three types: life insurance for lifetime payment, life insurance for regular payment and life insurance for one payment. The inadequacy of life insurance is that during the life of the insured, it is not possible to receive insurance money, but to surrender to receive cash value, which cannot solve the problem of pensions. ^[1]

Life insurance

Lifetime insurance refers to irregular death insurance. After the conclusion of the insurance contract, the insurer shall pay the insurance premium whenever the insured dies. As long as the insured pays the insurance premiums on time, the insurer has no right to refuse to renew the insurance. According to the different ways of paying insurance premiums, life insurance is divided into three types: life insurance for lifetime payment, life insurance for regular payment and life insurance for one payment. The inadequacy of life insurance is that during the life of the insured, it is not possible to receive insurance money, but to surrender to receive cash value, which cannot solve the problem of pensions. ^[1]

lifelong

Tradition

regular

1. Reasonable tax avoidance

For those who want to leave the assets to the next generation in order to achieve the transfer of assets and reasonable tax avoidance purposes, insurance is a good way to avoid debt.

2.Finance of wealth management

Purchasing dividend investment insurance can achieve the purpose of financial management. In general, the value-added function of insurance is weak. The most important determinant of the value-added of insurance is time, not the rate of return. Lifetime dividend insurance can maximize the use of the time factor to obtain the magical effect of increasing insurance compound interest.

"Lifetime insurance" not only solves the possible harm to family members caused by economic risks in real life, but also ensures that the family leaves a wealth higher than the investment. It is a wise financial management tool. This kind of insurance is suitable for people who have relatively stable income and high assets, who want stable returns but do not want to participate in investment themselves. They are also a good choice for investors who want to earn tax avoidance income and complete inheritance of property.

Misunderstanding 1: Social security is enough

This is the habitual thinking left by the planned economy era. At present, many units have purchased insurance for individuals, of which social insurance is compulsory insurance, including pension, unemployment, disease, maternity, and work injury, but these insurances provide only guarantees to maintain the most basic standard of living and cannot meet family risk management planning And higher quality retirement. Especially for the pillars that support the entire family, it is necessary to purchase accidental and life insurance to prevent the family's financial source from being subverted when unexpected.

Misunderstanding 2: Life insurance is insurance that can only be obtained after or near death, so it is useless to cover it

Insurance does not cover illness or death, but financial protection of funds in the event of misfortune. The roof pillars of the home must be purchased to provide financial security for the entire family.

Misunderstanding 3: High life insurance coverage, anyone can buy

According to insurance company restrictions, senior citizens are not allowed to purchase. At the same time, because life insurance calculates the rate based on age, senior citizens pay too much, which is not cost-effective, you can buy accident insurance to protect.

Myth 4: term life insurance is cheaper than life insurance, buy term life insurance

The cost of life insurance is higher than that of regular life insurance, but if economic conditions permit, life insurance should still be considered. Lifetime insurance covers a long time, and as long as the contract is valid, the insurance premium will eventually be paid (because there is always one death).