When it comes to life insurance selection, we must first be clear about its classification in order to make a better choice.
Whole life insurance: It is a type of unscheduled death insurance, and the insurance liability is from the effective date of the insurance contract until the death of the insured. Since the death of a person is inevitable, the insurance benefits of a whole life insurance must eventually be paid to the insured. Due to the long duration of life insurance, its rate is higher than that of term insurance, and it has the function of savings.
Term life insurance: It is a type of death insurance for a specific period of time (e.g., 10 years, 20 years). If the insured does not die during the insurance period, the insurer is not required to pay the premium and the premium is not refunded. Therefore, it is suitable for people with low budget, high risk, and a lot of debt.
Survival insurance: The insured must survive until the expiration of the insurance period specified in the policy before they can receive the insurance benefits. If the insured dies during the insurance period, the insured cannot claim to recover the insurance premiums and cannot recover the premiums paid.
Life and death insurance: a combination of term life insurance and survival insurance. If the insured is assumed to have died during the period agreed in the insurance contract, the beneficiary of the deceased will receive the death benefit; If the insured continues to survive until the expiration of the insurance period agreed in the insurance contract, the policyholder will receive life insurance with the maturity payment agreed in the insurance contract.
In terms of product selection, we have to choose in detail according to our own situation, first of all:
Choose the right life insurance type and product based on your individual needs and financial situation.
Understand the coverage and claims process of different life insurance products, so that you can get adequate protection and timely claims service when you need it.
Pay attention to compare the ** and coverage of different products in order to choose the more cost-effective product.
Understand your physical condition and family medical history so that you can choose a life insurance product that is more suitable for you.
When buying life insurance products, you should fully consider the leverage of the product, for example, if you can buy 100,000 yuan for the same 100 yuan, do not choose a product with 50,000 yuan of insurance, so as to increase the leverage and amplify the loss advantage.
For example, such a savings life insurance policy is very good.