In the work of the community broker of the American Life Insurance Guide Network, policyholders often ask, “Hello, I want to buy insurance”. In further communication, the policyholder will further indicate that what is needed is car or house insurance. At this time, the community insurance consultant will conduct a voluntary science popularization work: insurance such as auto insurance and house insurance belongs to the field of consumer insurance, while American life insurance belongs to the insurance with cash value and belongs to the field of wealth management insurance.
In addition to the commonality of the word “insurance” in their names, “consumer insurance” and “financial insurance” belong to completely different professional fields. If policyholders choose wealth management insurance according to the inertia of thinking about consumer insurance, they are likely to face relatively large losses and risks.
In order to correctly distinguish these two types of insurance, American Life Insurance Guide will use this article to help policyholders understand What isConsumerInsurance< /strong>Insurance, what is financial managementfinancialinsuranceinsurance , what is the difference between them >, which insurance are consumer expenses, and how to purchase< /strong>Knack of Experience.
What is consumerconsumertype insuranceinsurance?
Consumer insurance is a kind of consumer insurance, that is, the customer signs a contract with the insurance company. If the insurance accident stipulated in the contract occurs within the agreed time, the insurance company will compensate or pay according to the originally agreed amount; In the event of an insured accident, the insurance company will not return the premium paid.
We use an easy-to-understand way to understand “consumer insurance”, which is something we buy from insurance companies with money. The money handed over will be paid as soon as it is paid, as the cost of purchasing this “commitment”.
Common types of consumer insurance include:
- Home Insurance
- Car/Motorcycle/Truck/Yacht/Aircraft Insurance
- Health insurance
- Pet Insurance
- Commodity/Product Insurance
- Term Life Insurance
- Other…
What is financial managementfinancialinsuranceinsurance?
Financial insurance is different from consumer insurance. Consumer insurance does not have a cash value, while financial insurance has a cash value. To use a metaphor to understand “financial management insurance”, the policyholder goes to the insurance company to open a savings and financial management financial account, then deposits the money in it, hands it over to the insurance company, and obtains the benefits promised by the insurance.
Common types of financial insurance include:
- Participating Insurance
- Index Insurance
- Universal Insurance
- Securities investment insurance
- Annuity Insurance
- Hybrid long-term care insurance
- Other…
From this comparison, we can see that “consumerfeetype insuranceinsurance”, we we use money to pay< strong>Changea serviceCome back, wewelost all strong>moneyownershipright;“management</strong >WealthInsuranceInsurance”, it’s usWeWe strong>openset a financial account, you can access, I< strong>Wehave not lost allmoneyownership. There is such an essential difference between the two.
If we treat the allocation of “cash value insurance” according to the inertial thinking of purchasing “consumer insurance”, we will find that a policy with an insured amount of $1 million, the same brand and the same product, can be bought for $700/month, and $1500/month It is easy to get confused if you can buy it, so how should we choose? May wish to continue to look down.
How toChooseConsumerExpenseInsurance ?
The purchase of consumer insurance is a simple process of purchasing goods, through comparisoncomparison of different insuranceinsurancecompany credit and price , you can quickly make a judgment.
For example, a car insurance with a payout amount of $100,000/$300,000, and other compensation conditions are the same, but the premium of company A is $100/month cheaper than company B on average. If both companies have good credit ratings, then buy the insurance People usually choose A company’s products with higher “cost performance”.
In addition, because consumer insurance products are easy to standardize, many subdivisions have fully realized Internet insurance and claim settlement. This method can help insurance companies and agents reduce labor costs and bring benefits in terms of brand prices to policyholders. like:
Internet Car Insurance: Root
Internet home insurance brand: Hippo
Internet Renter insurance brand: Lemonade
Internet consumer term life insurance brands: Ladder / Banner / Haven
How to choose financial insurance?
Because financial insurance is essentially a “personal financial account”. How much money should be put into this account can be deduced according to the following two steps:
- Needs: Clarify “What exactly do I want?”
- Product selection and design: Policy selection and comprehensive design based on demand
1.Needs, what do I want?
To configure financial insurance, first of all, it is a selection process of requirementguideddirection (what I want).
On the demand side, from comprehensive sickness protection, tosupplementaryretirement incomeplanningtrusts and < /strong>assetssegregation,estate planningand wealth transmission Admittedly,The field of wealth management insurance has formed a set of rigorously segmented professional markets.
Every financial insurance company that enters this field has its own segmented field of expertise. Different policy products are suitable for different stages of life or different needs. A situation where one company or one product takes all does not exist and cannot exist. Only with correct product selection and reasonable allocation can the interests of policyholders be maximized at all stages.
So, returning to the above question, how much money we need to put in our policy account, whether to deposit $700/month or $15,000/month, It is completely based on the needs and goals of the policyholderGoal , choose product and program design these to decide .
2. How should I choose products and design solutions?
In the survey conducted by the American Life Insurance Guide community for policyholders, it was found that policyholders do not lack trust in “insurance”.
Some policyholders worry that insurersinsurance brokersor financial advisors themselves know and learningknowledgeand training >, is a higher level organization, knowledge of Framework deliberately filtersresults. In this training given by the upstream organization Under the framework, insurance brokerspersons or financial advisorsaccepted and mastered “KnowledgeKnowledge“ frame, yes“ Natural”withinclinations and limitations. In this case,forfrombusiness and policyholders are not beneficial.
In response to this situation, at the product selection stage, we recommend that policyholders learn and understand the relevant basic knowledge of cash value whole life insurance in advance, and have a preliminary understanding of the key questions of various design schemes—this is also what the American Life Insurance Guide Network has always advocated. Learn Before You Buy” insurance concept.
Ultimately, policyholders need to cooperate with professional independent market agents or insurance consultants, or purchase insurance from professional consultants with fiduciary responsibilitiesServe. In the process of communicating with professional practitioners, our actual needs are always the same insurance orientation, and the knowledge framework and product resources of professionals can answer our questions and provide us with a basic service framework. Through such an interactive knowledge learning process, policyholders can not only deepen their real understanding of American life insurance, but eventually, they will also find products and design solutions that can truly protect themselves and their families. (Finish)
