Huize Insurance Network · A year ago568 people viewed
Life insurance products are based on the condition or change of a person’s lifespan or physical condition as a condition of compensation and ensure the person’s life and body. Nowadays, more and more people pay attention to insurance, and through insurance, they can get a higher level of protection with a small amount of money. Life insurance is essential for those who bear the source of the family’s income. So, what are the types of life insurance? Which is better to buy?
1. Introduction to the classification of life insurance
Life insurance is mainly divided into life insurance, endowment insurance, and annuity insurance. The following is an introduction to the meaning and function of these types of insurance:
- Life insurance
Life insurance is personal insurance that takes the death of the insured as the insured accident.
Divided into term life insurance and whole life insurance according to the guarantee period. Among them, term life insurance refers to the occurrence of death within the validity period of the insurance, such as coverage for 10 years, 20 years, or coverage until the age of 60. If death or total disability occurs during the coverage period, the insurance company will compensate a sum of insurance money as agreed. If the insured survives during the validity period of the insurance, the insurance company will not pay the insurance premium and will not refund the premium paid. Whole life insurance coverage is generally guaranteed until the insured reaches the age of 100 by default, but it does not mean that there is no compensation if the insured is over 100 years old and does not die. That is, no matter when the insured dies, the beneficiary will receive compensation from the insurance company. Therefore, whole life insurance can be passed on to the next generation as a wealth.
- Endowment insurance
Endowment insurance is life and death insurance, and its role is to ensure that the insured can get a sum of money no matter what. It means that if the insured dies during the coverage period, the death benefit will be paid according to the agreement; if the insured still survives during the coverage period, the insurance company will refund the premium or the insured amount, depending on the terms of the contract. Endowment insurance is generally sold as additional insurance and is often paired with medical insurance and critical illness insurance. Relatively speaking, the premium is relatively high, and it is suitable for people with a sufficient budget to purchase insurance.
- Annuity insurance
Annuity insurance is a kind of survival insurance, that is, during the life of the insured, the insurer pays a certain amount of insurance money according to a certain period, which is a kind of survival insurance. The main function of annuity insurance is that it is dedicated, safe and stable, and can be used for education and pension protection.
What is the best life insurance to buy?
Buying insurance needs to be based on your own needs and budget. For users who have a limited budget and want to leave a sum of money for their family members after their death, they can choose to buy term life insurance, which has low premiums, high protection, and higher cost performance.
For users who have a sufficient budget and want to leave their assets to the next generation to transfer assets reasonably to avoid tax, they can choose to purchase whole life insurance. Although the premiums of such products are relatively high, they may have the possibility of asset appreciation and are suitable for wealth inheritance.
After the basic protection products are perfected, if you still have a budget, you can consider annuity insurance to increase wealth and provide economic protection for the unknown future. If you have spare money, annuity insurance is still worth considering.
Here is the introduction to life insurance, I hope it can help you. Before buying life insurance, it is recommended that you check whether your basic protection products are fully equipped, such as accident insurance that can avoid accidental risks, health insurance that can avoid disease risks, and life insurance that can avoid death risks. After these protections are perfected, if you still have a budget, consider purchasing endowment insurance or annuity insurance.