Incremental life is a good insurance product, you can get back all the money you invested in five years, and then the cash value starts to grow at a rate of 3% per year, locking in a 3% growth rate for life.
But even such a good product is not suitable for everyone.
Who is suitable to buy an increased whole life? Who is not suitable for buying an increased whole life?
In this article, we will talk about it in detail.
First of all, let's talk about the suitable ones to buy an increased life:
1.Former real estate investor
The house, once the best asset in all of China, is not one of them.
There are countless Chinese who, by investing in houses, have gained financial freedom and changed their destiny.
But now, the glory of real estate is gone, and under the influence of various factors, the house is not only no longer the best asset, but has become one of the worse assets under the influence of liquidity, holding costs, etc.
Investing in real estate requires a lot of patience and a long investment cycle, which is consistent with the long payback period of the incremental life.
And the growth rate of 3% per year, it does not seem like a lot, butThe cash value is written into the contract, which is clear and stable, which is also what real estate investors like.
After all, in the past, real estate investment also highlighted the word "stability", didn't it?
2.Financial investors who need to balance their asset allocation
Increase the stability of longevity, the sameIt is suitable for financial investors who face large asset fluctuations on a daily basis, and uses the idea of fixed income products to balance positions and hedge risks.
It is okay to take out a part of the financial assets to replace them with increased lifeEffectively reduce total asset volatilityto bring a better portfolio holding experience.
And increase the amount of longevityThe cash value is written into the contract and is not affected by external factors such as macroeconomicsIt also makes it the ballast stone and anchor in the asset portfolio, which can effectively avoid the risk of changes in the external environment and make investors more calm.
3.People who need to save compulsorily but have a certain need for flexibility
The compulsory savings characteristics of insurance are generally reflected in the increased life and pension pensions.
ButThe flexibility of pensions is poor, invest 10 years, 60 years old can start to receive, and it is a small annual return, for people who may face large expenses in the future, pension is not suitable.
However, after 5 years of increased life, the cash value exceeds the premiums paid, andYou can surrender the policy in full at any time and get all your money back.
If you don't need a full refund, you can do itPartial reduction, take a part of the money out, very flexible.
In this way, both mandatory savings for 5 years are guaranteed, and the flexibility to withdraw cash after 5 years is guaranteed.
This is indeed a very good solution for people who have both mandatory savings needs and flexibility requirements.
4.People who have requirements for stability in the long term
Macroeconomic and market interest rates are always changing, one will be higher and the other will be low, and it is very distressing to not understand, what should I do?
The long-term growth rate of the increased life is locked at 3%, and after 5 yearsThe cash value is growing steadily at a rate of 3% per year, which is a good solution to the troubles of this kind of people.
From now on, you don't have to care about the macro and the market, as long asHold an increased life insurance policy with peace of mind, and work and live with peace of mind, it's OK, it's very worry-free and labor-saving.
Okay, after talking about who is suitable for buying increased life, let's talk about who is not suitable for buying increased life.
1.People who are more concerned about short-term gains
After 5 years of life increase, the cash value will exceed the premiums paid, i.e. the cash value will be lower than or even significantly lower than the premiums paid within 5 years.
I casually pulled a 5-year benefit presentation data for an increased lifespan, and that's about it.
It can be seen that not only will there be no growth in 5 years, but the policy will also suffer a relatively large loss if it is surrendered.
So,People who have certain requirements for short-term income or may need to use this money in the short term are not suitable for buying increased life.
2.Lack of patience to hold the policy for a long time
The growth rate of increased life is 3% per year, which is very stable, but this income is really not high.
In general, the cash value of an increased lifeIt will take about 30 years to double.
If you really don't have the patience to hold it for so long, and you may have to cash out in the middle, then this income can indeed only be said to be average.
So if yesIf you are coming for high yields and lack the patience to hold the policy for a long time, it is not suitable to buy an increased life.