There is also an inherent logic to buying insurance.
The purchase of insurance products needs to follow the internal logic, and you cannot believe the statements that "something is better than nothing" and "buying is better than not buying". If you buy an insurance product that is not suitable for you, you may regret it more in the future when the risk occurs. The internal logic of buying insurance mainly includes the following three aspects.
First, clarify the needs. That is, what risks need to be protected against with insurance products. Because insurance products are now becoming more and more detailed, it is important to clarify your needs before purchasing. If you want to cover the medical expenses in case of illness or accident, then for the average family, Million Medical Insurance is the first choice. If you want to deal with family responsibilities that you can't take on due to an unexpected departure, then term life insurance is the best option. The need to purchase each insurance product should be as single and accurate as possible.
Second, follow the order of purchase. Although the insurance product is not suitable for a one-time purchase, it needs to be adjusted in due course according to the family's risk profile. When you start purchasing an insurance product, you must ensure that all family members have the basic coverage in place.
What are these basic guarantees?
First, everyone can be at risk for illness and accidents. Therefore, the basic coverage includes million medical insurance and one-year accident insurance products. On this basis, according to the family budget and each person's contribution to the family income, consider adding term life insurance, critical illness insurance and other products. Therefore, the correct purchase order is to provide basic coverage for all family members first, and then add other benefits according to individual circumstances.
Third, focus on leverage. The leverage mentioned here means that when you spend the same money and take out the insurance at the same point in time, you can get more claims. Such products have higher leverage. The purpose of insurance is to solve the uncertain risks that may be faced in the future, and it is also necessary to solve the uncertain living expenses that may be faced in the future, such as pension, children's education, etc.
The above three points are the internal logic of purchasing insurance products, and I hope that it will help you to purchase insurance products to solve family risks.
Follow me and share your knowledge of insurance and financial management from time to time. If you have any questions, please leave a message in the comment area.
