Today, I will tell you about a very popular product in the market, whole life insurance.
1. What is whole life insurance?
Whole life insurance, we can literally understand that "lifelong" means that the guarantee period is lifelong and lifelong; "Life insurance" is an insurance with life expectancy as the main body.
Generally speaking, whenever we die, it is a product that we can pay for when we buy whole life insurance.
Payout ratio in whole life insurance is basically 100%. Because the guarantee period is lifelong, we will always die in this life, so we will definitely pay compensation.
So it can be understood that this is an insurance to protect our life and death.
Second, what is the function of whole life insurance?
After we know what whole life insurance is, we need to know what functions whole life insurance has.
1. Build a firewall for family responsibilities.
This function is not only the function of whole life insurance, but also the function of term life insurance. A very important basic function of life insurance products is to establish a firewall for family responsibilities. Everyone's family has family responsibilities to some extent. We generally say that family responsibilities are divided into: liabilities, that is, family liabilities, which generally include car loans and mortgages. If there is no economic pillar in China, this part of responsibility is impossible; The responsibility of raising children, families with children have the responsibility to raise their children before they reach adulthood. Parenting includes children's education, children's daily life and so on. This is also inevitable. We don't want to affect our children's growth because of some family changes. In addition, the maintenance responsibility of the elderly, the living expenses and medical expenses of the elderly. All need children to reserve.
And these family responsibilities, if we want to build a firewall, no matter what happens to the economic pillar, will not affect these responsibilities, that is, life insurance can bear the responsibility. Generally speaking, it is to buy life insurance for the economic pillar and die during the protection period. The money paid by the insurance company can guarantee family responsibilities.
2. Inheritance of wealth
Whole life insurance will definitely pay, and the money paid will be given to his family, so another function of whole life insurance is the function of wealth inheritance. Wealthy families want to pass on their wealth to the next generation, so whole life insurance can achieve this function. In addition, wealth can be distributed to the corresponding people by designating beneficiaries, and the corresponding distribution ratio can be determined in whole life insurance.
3. Financial management and savings
One of the differences between whole life insurance and other guaranteed products is that whole life insurance can be used as a tool for financial management and savings. Whole life insurance didn't pay compensation until his death. Before his death, the insurance company will invest the premium we paid to the insurance company, and part of the income will be reflected in our insurance policy. Whole life insurance's yield is not particularly high, generally only 2%-4%, almost all around 3%. But there is no risk, no loss, absolutely safe way.
4. A certain degree of tax avoidance and debt avoidance.
I often hear some insurance agents say that insurance can avoid taxes and pay off debts. Whole life insurance has this function, but a certain degree of tax avoidance and tax avoidance is not malicious tax avoidance and tax avoidance under illegal circumstances.
How does whole life insurance avoid taxes and debts? In fact, most of the taxes mentioned here are inheritance taxes that have not been levied in China. When you watch the news, you may see that the inheritance tax in China is as high as 50%. You have to pay taxes before you can inherit the property, so the inheritance tax is a very heavy tax. Then whole life insurance does not need to pay inheritance tax, because it is passed on to the next generation by way of compensation, in order to avoid taxes. Avoidance of debts means that if a person dies and whole life insurance's claim has been settled to the designated beneficiary, then some debts before that don't need to be repaid with this claim, so to some extent, he also evaded debts. This is whole life insurance's tax avoidance function.
Who is whole life insurance suitable for?
We have just talked about the function of whole life insurance, so which people are suitable to buy whole life insurance?
Whole life insurance is suitable for families with complete basic security and some surplus funds. Generally speaking, the middle class or wealthy families are more suitable for allocation.
Whole life insurance is not the basic insurance. The basic insurance is accident insurance, medical insurance, critical illness insurance and term life insurance. These four kinds of insurance are needed by all families. Basic insurance is based on people's basic health and life safety. Although whole life insurance has the function of guaranteeing life, compared with term life insurance, the price in whole life insurance is more expensive. In order to guarantee a higher insurance amount, whole life insurance has to pay a very high premium. Therefore, in terms of pure family liability protection, whole life insurance is not as good as term life insurance, which has a relatively large leverage.
Therefore, whole life insurance is still suitable for some families with surplus funds.
Four. Advantages and disadvantages of whole life insurance.
Advantages:
1, the saving function can preserve and increase the value: whether you are out of danger or not, you get more money back than you pay the premium, and you earn it.
2. Save taxes and fees: the collection of inheritance tax in the future is the general trend. The inheritance tax in developed countries is as high as 50%. In whole life insurance, there is no inheritance tax after the beneficiary is designated.
3. Segregate debts: Insurance can isolate debts to a certain extent, provided that it is legal. Whole life insurance is more clear in distinguishing enterprise assets from personal assets.
4. Policy loan: whole life insurance's cash value is used to borrow money from insurance companies, without guarantee, with fast loan speed and low interest rate.
5. Inherit wealth according to personal wishes: whole life insurance follows the policy structure, and makes the flow of wealth reflect the owner's wishes by reasonably setting the insured, the insured and the beneficiary.
Disadvantages:
1, low leverage and high premium.
Compared with term life insurance, the premium in whole life insurance is relatively high. In whole life insurance, most of them are paid by installment, which usually takes one or twenty years. For people with average economic conditions, this is a heavy burden.
2, not suitable for old-age products.
Whole life insurance's insurance money can only be collected after the death of the insured, and the insured can't receive insurance money before his death. If you want to get the money, firstly, you can apply for a policy loan; secondly, you can choose to surrender the insurance to return the cash value of the policy; thirdly, when you convert whole life insurance into an annuity, you will face some losses, so life insurance cannot solve the pension problem.
Fifth, Volkswagen whole life insurance evaluation.
When we compare whole life insurance, we mainly consider the flexibility and the benefits of which product to compare. We compared three products, namely, Patron Saint of Love Life, Ruyi Zun of Xintai Life, and No.1 handed down from generation to generation by Hengqin.
Let's take a 30-year-old male as an example. We pay 6.5438+million a year for five years, and the total premium is 500,000. Let's make a comparison:
1, the patron saint who loves life
2. Xintai Life Insurance Ruyi Zun
3. Hengqin was handed down from generation to generation.
By comparison, we can clearly see that the patron saint and Ruyi Zun return at the same speed, both in the seventh year of the policy year, while Hengqin Handed Down No.1 is better, returning in the sixth year of the policy year.
If you suddenly get sick or need money, of course, Hengqin Handed Down No.1 is superior to the other two products.
If we don't need to spend money in the early stage, then we either ignore it or ignore it, depending on the later stage.
For example, from the 20th year of the policy, when we are 50 years old, the cash value of the patron saint of loving life is 9 1.88 million yuan. The cash value of Xintai Ruyi Zun is: 9 18023 yuan. The cash value of Hengqin Ishikawa 1 is 9 1.92 million yuan.
In fact, the cash value of the three products is basically neck and neck! Hengqin handed down No.1 had advantages in the early stage, but the patron saint and Ruyi Zun also came from behind. In other words, Hengqin Chuanshi 1 is the highest yield in the early stage of the three products.
There is also a knowledge point here: a high rate of return in the early stage means a fast return. Generally, after paying the premium, the cash value exceeds the premium we paid, and then it continues to grow every year. When the money is needed, it will be withdrawn through surrender. The value of cash brings the biggest function of increasing life, that is, reducing insurance and withdrawing cash. The value of cash is the value of our account. When we need money, we can reduce insurance and take some cash value, which is the amount we can withdraw. The higher the cash value, the more money will be withdrawn from the insurance relief. After withdrawal, the remaining account value can continue to compound interest and increase in value according to the interest rate agreed in the contract.
For example, if Mr. Wang is 30 years old, he will pay 6,543,800 yuan a year in five years, with a total premium of 500,000 yuan, which is guaranteed for life. The previous income is the same as above, mainly depending on the reduction of insurance in the later period. Suppose Mr. Wang was sick at the age of 40. He spent two years treating the disease and needed 80 thousand yuan every year. Let's take a look at the insured amount of three products after reduction: 1, the patron saint of love life.
2. Xintai Life Insurance Ruyi Zun
3. Hengqin was handed down from generation to generation.
As we can see from the above picture, Mr. Xia has taken away a total of 654.38+0.6 million in the past two years. Then the cash value after withdrawal is: the remaining patron saint of love life: 523477 yuan; Ruyi Zun of Xintai Life Insurance: 5 108 10 yuan; Hengqin Chuanshi 1 Remaining: 5 1 17 14 yuan. In other words, the remaining 500,000 yuan will continue to increase in value with compound interest, which can be used for retirement or as an asset inheritance.
In fact, this also proves from another aspect that although the patron saint of love life is not as good as other products in terms of interest rate, it is catching up quickly and its advantages are more obvious! Ruyi Zun is very calm, neither catching up nor falling behind. If everyone pursues high income in the early stage, then Hengqin Handed Down No.1 is the best choice.
I remind you that there are fewer and fewer flexible, high-yield and risk-free financial products, so if you have some spare money now, whole life insurance is a good choice. Generally speaking, whole life insurance can be used not only for providing for the aged, but also for children's education, or asset inheritance and asset isolation.
If you want to know more about whole life insurance, you can choose to find a professional insurance broker to serve you. Baibaojun is a professional insurance broker platform. Baidu can choose a professional insurance broker that matches you.