After having a certain economic foundation, more and more people are buying insurance to add protection and resist risks for the future of themselves and their families. However, do you understand the correct principles for insurance? Today, let's take a look at the five principles of insurance to help you scientifically formulate an insurance allocation strategy.
Principle 1: Adults first, children second
Many parents believe that compared with **, their children's resistance is weak and prone to diseases, and they should be given priority to insurance. Therefore, many parents leave most of their insurance budget to their children, so that they have sufficient protection, while they are still "running naked" in the risk.
In fact, the healthy growth of children is inseparable from adults, and the greatest protection for children comes from their parents. Parents are the main force of the family's economy, once unfortunately suffering from illness or accidents, the family loses the economy, and the child loses the real protection. Therefore, only when adults are fully insured can families and children have the ability to resist risks.
Principle 2: Plan first, then product
Purchasing insurance is a demand-oriented comprehensive allocation process, which requires comprehensive consideration of multi-dimensional factors such as family structure, income level, expenditure, risks, and protection needs. When buying insurance, you should make a reasonable plan according to your needs, and then choose a product according to the plan.
In addition, the insurance allocation must not blindly follow the trend. Different families or individuals have different incomes and expenses, health status, available budgets, and insurance needs, among other things. If you follow the trend and buy without considering the actual situation, it is very likely that you will not be able to use the insurance you have bought and you will not be able to buy the insurance you want to use.
Principle 3: Protect first, then manage money
The most important function of insurance is the protection function, so the main purpose of buying insurance should be to avoid risks. The basic function of insurance is loss compensation, and the protection of basic survival such as accidents, critical illnesses, and medical compensation should be the primary choice of every policyholder.
Principle 4: Sum Insured First, Premium After
The sum insured is the abbreviation of the sum insured, which refers to the maximum amount paid by the insurance company after the insured person is out of insurance. The premium is the money we pay when we buy the insurance. So which is more important, the sum insured or the premium?
Generally speaking, the higher the sum insured, the higher the premium. The level of the sum insured is related to the extent to which the insured can be protected in the event of an insured event. Therefore, it is usually not recommended to save money by compressing the premium and reducing the sum insured, otherwise the amount of compensation will be too small, and the purchase of insurance will be meaningless. If you really have a limited budget, you can reduce the pressure on premiums by shortening the coverage period and extending the payment period.
Principle 5: Product first, brand second
In most people's consumption perceptions, they always think that big brands are more reliable. There's nothing wrong with looking for big brands, but it's more important to choose the right product when it comes to buying insurance. This is because insurance companies, no matter how big or small, are strictly regulated from establishment to operation. Therefore, when buying insurance, whether the insurance product can meet your needs is the primary consideration.
The products of insurance companies are diverse and different, so we should pay more attention to the choice of insurance products, and try to make the protection and protection meet your needs and expectations. At the same time, before applying for insurance, you should carefully read the terms of "Insurance Notice" and "Health Notice" to clarify your rights and obligations and ensure that you consume clearly.