Many people have bought insurance for many years, but most of them still don’t understand what insurance is.
Insurance, to put it more plainly, is a kind of risk transfer, used to avoid risks, not just to pay huge premiums and force yourself to death until you seem to be poor every month.
Often everyone buys a lot of insurance policies that they seem to have never understood before. After buying them, they never look at the long and densely written policy contract.
Then when something goes wrong and you have to settle a claim, you find the original salesperson and he tells you that he is sorry, but there is no insurance coverage available for you.
So before you buy insurance, you really need to clarify what kind of protection the policy you want to buy can bring you.
There is nothing wrong with insurance, it just costs money. But if we are not from a wealthy family and have a limited basic salary, how should we insure it?
Because your funds are limited, when choosing insurance, you should start with a more comprehensive one, and then when you have some extra money, you can then configure multiple policies.
At this time, a policy with dual exemptions to help you save for retirement is very suitable as the first allocation in your life.
We often hear insurance salesmen happily talking to you about how powerful this policy is with "double exemptions"...
It sounds really interesting at the moment, but usually most of them are forgotten immediately after listening to it. After all, it has been laid out in the front and too many things are crammed into the head.
Let me help you explain in a simple and easy-to-understand manner what double immunity is. Those who have forgotten it can also review it carefully.
Exemption: The main contract exempts you from paying insurance premiums again.
This means that if you are unfortunately disabled, the insurance will not only pay out the money you should have, but as long as you do not terminate the policy, the insurance company will help you pay all the subsequent insurance premiums year by year, and the policy value will continue to be valid. .
Double exemption: Additional riders are also exempt from payment
As the name suggests, it is a stack of two layers of insurance, both of which are free of premiums. From the date when the disability is determined, and until the expiration of the payment period, the premium for each period will be paid to you again after adding the discount rate.
To sum up, this clause involves exemptions in two aspects. If the insurance policy is underwritten and unable to continue paying premiums due to disability, the insurance company will waive all subsequent premiums, and the protection of the policy will still be valid. .
Does this explanation make it clearer to understand what double immunity is?
However, in addition to the "double exemption", the biggest effect of more excellent policies is that after reaching the originally set number of years, if the policy is not terminated, there will be a subsequent compound interest rolling system to directly continue to help you increase your assets.
Reading the text explanation sounds very chatty. Let's give a simple example to understand it more clearly and quickly.
Suppose we buy a 20-year policy with a fixed monthly payment of 5,000 and a disability claim of 3 million. If we do not cancel the policy at maturity and claim it back, we can start to have the policy value with compound interest.
Although we have always said that it is best if the insurance does not require compensation, but if you are really unfortunate and become disabled in the second year, of course the compensation will be paid to you.
We discount the cheapest premium and calculate the annual payment:
5000 x 12 x 2 = 120,000
A disability accident occurred in the second year, and then the "double exemption" of the main and sub-contract was activated, that is, you only actually paid "120,000 yuan", and you do not need to pay the remaining "18 years" of premiums. Submit it again.
5000 x 12 x 18 = 1.08 million
Then it depends on whether you want to get back the policy value, which refers to the termination fee that increases year by year. A good policy will usually reach the total amount of premiums you paid near the 16th year. Starting from the 17th year , it will exceed the total insurance amount you paid.
If you don't get it back after canceling the contract, this "20-year policy" will enter a higher compound interest mode starting from the 21st year and you won't have to pay any premiums.
If you don’t want to delay that long, you can also consider a short-term, 10-year policy.
As for how the compound interest rolls over, it depends on each insurance company. Different policy settings will roll out the policy value after maturity. It may double in the next 10 years, double in another 20 years, etc.
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