Category: Insurance tips Release Date: 2006-08-01
In the decision to purchase insurance, many people believe that the bigger the better insurance amount. The greater the amount of insurance, the greater will be the amount of payment due to the more their own benefit. In fact, this idea is wrong, and buy insurance depends on their needs. In determining the insurance needs should note the following points:
First, understand their needs, decide on the appropriate type of life insurance protection and savings, both financial management functions. If an accident or disease to reduce the burden of the family to take care of his family life and Education Fund, please prefer to protect high-goods; if the preparations for their children's education funds or pension funds to prepare, places a high savings choose the goods is appropriate.
Second, understand their needs, determine the appropriate amount of insurance necessary to protect or prepare carefully calculating the cumulative amount of savings, the first payment in accordance with the present ability to determine the appropriate amount of insurance. Each insurance product the amount of premium to be paid each year and insurance is proportional to the size of the amount. If the affordability of insurance need not reach the amount of time could be considered in the affordability increases, the successive increase in the amount of insurance or re-purchase of second, third new policy to meet their needs.
Third, to measure their ability to decide on the appropriate premium life insurance protection features, is a personal or family financial planning, risk transfer, one of the best tools, like to buy necessities of life, should be the necessary expenditures. Paid an annual premium, generally speaking, an individual or family's annual disposable income (income after deducting the balance of a variety of taxes) of 10% suitable. Life insurance savings function is to prepare children's education fund, individual or family and long-term savings, retirement pension, one of the most robust financial management, this part of the premiums paid each year should be no more than an individual or family's annual disposable income , less the amount to be paid all their living expenses, that is, income and expenditure balance.
