Surely many of you, after reading my series of articles about life insurance, are wondering: How much life insurance should I buy? right?
Because excess participation costs, but less participation is not enough, not true to the true meaning of life insurance.
That’s why today I will reveal to you a formula to help you know the exact number that you should participate!
The first is to mention the economic condition of your family first!
A sincere advice is that you should not enter into insurance plans that are too much for you (i.e. too expensive), as a life insurance policy usually lasts from 10 to 20 years, or even longer. than.
And you must pay regularly, pay the full fee according to the correct cycle to be protected according to the provisions of the contract.
Later, when your economy is more stable, you can upgrade more benefits by increasing the cost of insurance, so there is no need to rush to not be able to afford it but miss paying the premium, leading to loss of life. your benefits. Moreover, don’t be under financial pressure because of insurance.
The second is: Depending on the industry and age, design the insurance package accordingly. It’s also for this reason that you need to have a really conscientious consultant, because you won’t be able to design your own, simply because it requires expertise.
I take for example:
– If you are a driver, in addition to needing to protect your life, you need to pay attention to additional accident protection (MEDICAL products), how much will be compensated when an accident occurs unintentionally resulting in bodily harm.
– If you are a food processing worker, exposed to a lot of chemicals, you need to add more dangerous disease products later, if you have a serious illness that requires a lot of money for treatment, you need to register a health care card to protect yourself. Insurance pays for this part of the cost…
Or if you get insurance early, when you are very young, you should increase your compensation for hospitalization costs more, and reduce your death benefit. This one, if the consultant is interested, they will design the standard for you.
Each industry will have its own risks, so the design of the insurance package will not be the same and of course the amount of fees to be paid will also be different.
So the question is how much is the most reasonable cost to register to buy insurance?
The answer is: 10-20% of your total income for 1 year.
Your income is 200 million / year => you can deduct 20 million to join the insurance package for 1 year.
If your contract has protection for both husband and wife, the total income of both husband and wife is 300 million a year, then the appropriate participation fee is 30 million per year.
But There are also cases where some people have a high income, 200-300 million, or a billion a month, how much should they participate?
Then this “individual” case will depend on your needs, financial abundance, so these investments are not a big deal to you.
If you want to both protect and invest in accumulation, join the most VIP insurance packages of the insurance company you are participating in, buy a high package of 100 million/year.
And if you just want protection (ie not participating in investment), you can choose a package of about 50 million/year, which is already relatively full of benefits.
At this time, the life insurance company will take part of your money to invest in Fund Certificates or invest in public works… and will divide the interest to you, which will usually be much higher than the bank interest rate.
Or if you have the conditions, and you are doing business-related jobs, you can buy many insurance packages from many different insurance companies. What is the purpose of doing?
Well, now it’s not simply to protect yourself against risks, but you are also taking financial investments very seriously.
Because when there are many premium insurance packages, you will be able to open many credit cards at many different banks. Because many banks allow opening credit cards through life insurance.
Normally, credit cards will let us use money in advance and 100% interest free for about 45 days.
That, you think, with a few credit cards like that, you can use a few hundred million to a billion with 0% interest within 45 days already. In business this cash flow will be very important in many cases.
But please note one thing, in a life insurance package, there will be 2 parts: human life product and HEALTH product.
- Life products: They will compensate you in the event you lose your ability to work or die.
- Medical products: Pay when you are in the hospital (medicine, hospital bed, etc.)
When buying multiple insurance plans at many different life insurance companies, you must carefully note this:
Only design HEALTH products in a single life insurance company. Because when you are hospitalized, only 1 of the companies that you have joined life insurance to pay, but not at all.
n the company you have joined will pay you.
So, you only need to design Medical products at a single insurance company, while other life insurance companies you only design for Life products to avoid losing money every year. Because medical products will be deducted every year.
Life products are different, when you have an accident, all insurance companies will be responsible for paying you as in the signed contract.
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Life insurance premiums will be based on four factors as follows:
- Age: The younger you are, the cheaper the insurance will be, so if you can, get it as soon as possible.
- Sex: Female will be cheaper than Male.
- Job: This depends on the company’s regulations on the type of industry group. The more dangerous profession, the higher the fee. For example, a toll driver will have a higher fee than a tele sales employee.
- Benefit needs: The more benefits, the higher the fee.
Well, above are some of my personal shares about the level of insurance you should join. I am also a life insurance consultant, so I also want to do something to make people see more about life products.
Thank you for reading the entire article, and hope the above knowledge will be useful to you.
CTV: Cao Tran My Dung – Blogchiasekienthuc.com
Edit by Kien Nguyen
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