fundamental principle
Principle 1: Buy in time. A major feature of insurance is that the older you are, the higher the underwriting risk of insurance companies and the more requirements for premiums. Therefore, if you buy early and buy in time when you are young, the investment in premium will be less.
Principle 2: Buy in moderation. In order to live within your means, you should decide how much premium to pay each year according to your income. According to the relevant data of the China Insurance Regulatory Commission, for individuals, the most suitable purchase amount should be controlled at 10%- 15% of annual income.
Principle 3: Insurance should be appropriate. Buy insurance according to your family, income and security needs. The choice of insurance should be appropriate. First, choose pure protection products or partial protection products, with "health care" insurance as the main part and accident insurance as the supplement.
What kind of insurance is cost effective?
1 first of all, the working class needs a basic life insurance, and pension should also be considered. Therefore, the old-age insurance with dual functions of providing for the aged and personal security is an economical and practical choice for ordinary wage earners.
2. Secondly, after having basic life insurance, because accidental injuries and "major diseases" are called the two hidden killers in the society at present, wage earners need to consider matching certain critical illness insurance and accidental injury insurance.
3. An endowment life insurance plus a certain amount of critical illness insurance and accidental injury insurance, the basic insurance package for individuals is similar. If economic conditions permit, we can supplement certain "medical insurance" to solve the outpatient or hospitalization expenses caused by common diseases or accidental injuries.
4. After the personal risk protection system is completed, we need to consider the family risk protection system. When a family has actual protection, family property will be safer, which is the best choice for the new class to ease the pressure of life.
Matters needing attention
When the working class buys insurance, they should always understand that they should start with the most basic protection. The first consideration is accident, medical care and death protection, followed by education funds and pension arrangements. Finally, consider investment insurance such as dividend, universal and investment-linked insurance.
It should be noted that the role and emphasis of insurance are different for family pillars with different income levels. You need to make an insurance plan according to your own financial ability and family economic needs.