8 Rules You Need to Know Before You Buy Insurance(2)
5. Clarify the category of insurance
A wide range of insurance in the United States, such as fixed-term life insurance, life insurance, universal insurance, universal investment type insurance, universal index insurance and so on, every term of insurance design, claims are not the same, so before you buy must ask you: just want a life insurance can be compensated, or hope to add more "life benefits" in life insurance?
Term and life insurance are great options if you just want a life insurance policy. But if you want to get some "life benefits" in addition to life insurance, consider buying universal, investment-based universal or exponential universal insurance directly.
These three types of insurance in addition to its own life insurance functions, also has a portion of cash value, i.e. the company will take a portion of the premium for investment management, earned money as a dividend distributed to each insured, the policyholder can use the money to supplement retirement income, pay for children's education funds or household expenses. , etc., in short, may be free to use, and will not be like 401K or IRA retirement account.
6. Find out more about the warranty mechanism
If you buy insurance with a "return" policy, then be sure to ask yourself if the insurance has a guarantee mechanism, because once the deficit is too large, the policyholder will need additional funds to maintain the validity of the policy, I think that is not what the policyholder would like to see.
For example, universal investment-type insurance, although its returns are not capped (sometimes can get a high return), but it is not guaranteed, investors are very likely to have no return.
But universal index-type insurance has a guarantee mechanism, in the market environment is not good, to give investors at least 0% of the protection, but in exchange, in the right time of the market, insurance companies to give the return is also capped.
Looking at the data, IUL's 20-year return on investment can also be as high as 7% to 9%, and anyone who knows how to invest knows that it's certainly not a small return on all a solid investment. So, greedy chemo, investment is the most important thing is to guarantee the bottom, if the principal is gone, talk about what income?
7. Ask if it can be purchased with long-term care and serious health insurance
Some universal index insurance can be purchased with long-term care insurance and serious health insurance. Be aware that long-term care and serious illnesses in the United States are very expensive, and many people even have to give up their jobs and take care of patients at home with a small government subsidy.
But if you have long-term care or serious health insurance, you don't have to worry about the financial burden. Once a doctor has been identified as a serious illness or needs long-term care, you can get an insurance claim in advance, using the application to cover the care and treatment required.
Note, however, that all businesses or insurance policies have such additional offer conditions, so be sure to ask before you buy.
8. Find a professional insurance broker
The insurance market in the United States is so complex that it is even more difficult to obtain a satisfactory insurance policy. So, before you buy insurance, you can consult a professional insurance broker, it can choose the most reliable and appropriate for you from a professional and affordable point of view, for you to save a lot of problems and problems.
Remember, don't be shy or feel embarrassed, but anyone who has questions should contact the broker in a timely manner, so as not to cause misunderstanding and therefore affect their own vital interests