Today I will talk to you about how much is the most appropriate amount to buy for increased whole life insurance, and how to buy it
Incremental whole life insurance, due to the advantages of rapid growth in cash value and flexible asset planning, has the function of long-term savings and wealth appreciation
In recent years, it has been favored by many people and has become an important part of family wealth planning.
As a savings insurance, increased whole life insurance is based on the amount invested to determine the initial sum insured and policy benefits, so some people come to consult the dad, how much is the most appropriate amount to buy increased whole life insurance, and how to buy it?
I'm going to talk to you today:
01 How much can I buy increased whole life insurance?
There is no fixed answer to how much money can be used to buy increased life, after all, the more you invest in this type of savings insurance, the higher the future policy benefits.
However, we must first understand the insurance threshold of this type of product, and the minimum investment amount is different for different products.
The insurance threshold for this type of product is not high, and ordinary people can easily get it.
However, the minimum investment threshold is the lower limit, and the upper limit needs to be decided by each person according to the actual situation.
02 How much should I buy to increase my whole life insurance?
How much does it cost to invest in increased whole life insurance every year, and how much is better to invest each time?
From the analysis of different factors, Sister Dan has different suggestions:
1. Consider the ** of funds.
1) Temporary income.
For example, if it is temporary income such as financial management, cash from the sale of houses, or project income, Sister Dan recommends choosing short-term payment.
From the perspective of interests, single payment benefits the most, and this type of fund is more suitable for one-time investment.
2) Stable cash flow.
If it is a stable family income**, such as the balance of a year's living expenses, year-end bonuses or other stable investment income, such as real estate rent, it is more suitable for long-term payment.
Because the premium is set to be a relatively stable income**, even if you encounter an emergency, there are other funds to deal with.
2. Consider different groups of people.
1) People with higher income stability, such as wage earners.
If your income is relatively stable in the future and you don't have much spare money on hand, Daddy suggests that you extend the payment period and pay less every year, which adds up to a lot.
For example, teachers, doctors and other office workers, the family income structure has not changed much, and how much money can be earned in the future is relatively stable.
2) People with low income stability, such as individual industrial and commercial households.
If you have a lot of spare money on hand and your future income fluctuates greatly, it would be better to have a shorter payment period for increasing your life.
For example, if the family is in business, although the current income is high, it is not necessarily stable.
Let spare money lock in high-yield appreciation as soon as possible, pay the money early, and avoid the risk of not being able to pay the premium in the future.
At the same time, at the stage of high income, you can use the increase in life to help you lock in a certain amount of assets, in case you need capital turnover, self-pension, children's education, etc. in the future.
03 How to buy increased whole life insurance more cost-effective?
So how to buy a policy with higher benefits for increased whole life insurance, and what products are more cost-effective for long-term and short-term payment?
Under normal circumstances, the shorter the premium period of incremental whole life insurance, the sooner the insurance company will reap the benefits.
The value of the incremental life insurance product is mainly reflected by the cash value of the policy.
So it can be understood like this:
For the same increased life product, the faster we pay the premium, because the more beneficial it is to the insurance company, so in terms of product design, the insurance company will also have more concessions to us, which will be reflected in the growth of cash value.
However, when it comes to actual products, the benefits of long-term and short-term payments for different products are also different.
Let's take a look at the policy benefit performance of the product under different payment terms:
Taking a 30-year-old man paying 100,000 yuan a year as an example, the same premium investment, after 10 years of appreciation, to the age of 40 years of the insured, the highest cash value is a participating insurance, and has maintained a leading level since then, and the same is true in the performance of surrender IRR, by the age of 90, it has reached 3493% high level.
Therefore, how to buy a higher policy interest for increased whole life insurance, and how to choose the payment period, also need to be determined according to the actual situation.
04 Finally.
All in all, how much is the most appropriate amount of increased whole life insurance and how to buy it depends on the actual situation of the individual.
If you want to have more choices or have a stable income, it is recommended to extend the payment period and have better liquidity of funds
If the income fluctuates greatly, it is recommended to shorten the premium payment period and the policy benefit is higher.