Why should we buy insurance?

Nowadays, buying insurance for yourself or your family has become one of the most common household purchases. As an important part of family financial management, insurance has been increasingly valued by everyone, but how should you insure your family? Woolen cloth? It is well known that you should first buy insurance for the main breadwinner of the family, but the following important principles when buying insurance are often ignored by people.

Below we use 5 cases to illustrate the 5 major principles of buying insurance. Please be patient and read it, you will finish it soon.

1. Buy insurance for adults first

An opposite point of view is "buy insurance for children first". There are many people who have this idea and do it. According to the According to a survey in a community in Beijing where the author lives, about 80-90% of families have bought insurance for their children, but the majority of these families have parents who do not buy insurance.

Parents often think that children have no protection, and adults can protect themselves, so they provide insurance for their children; there are also many parents who are very emotional and love their children so much that they will take any good things they have. Give it to your children first. When you hear that insurance is good, you also buy it for your children first. You think it is like food, drink, and fun. Buying insurance for your children is a manifestation of responsibility, but you should give it to your children first. Adults buy it themselves. It is understandable that these parents love their children, but they have overlooked the most important point: parents are their children's insurance!

When adults are around, you can never give your children too much care and love. However, the biggest risk for children is that their parents have an accident. Once this happens, have you ever thought about what your children will do? ? How many children have lived a miserable childhood because of the sudden death of their parents...

Case story:

Zhang is a businessman in Beijing. He has a wife who is a civil servant and With a 6-year-old daughter, Zhang’s business is going very smoothly and the family conditions are very good. This is a very happy family. In 2001, after many visits from an insurance salesman, he finally agreed to buy insurance from this salesman. He bought an education insurance and a participating pension insurance for his daughter. Although this business The staff repeatedly told him that he should buy an insurance policy for himself first, but he always said that it would be enough to buy it for his children. In this way, he himself was out all day without any insurance.

In the summer of 2002, Zhang and his wife were driving on the highway when they were hit by a car overtaking from behind. As a result, several cars collided and two people died on the spot, leaving a year-old family behind. The daughter is only 7 years old... In addition to the fact that the mother of the child is a civil servant and has funeral expenses, the couple does not have any life insurance with death liability. It is very difficult for children who become orphans to rely solely on the savings left by their parents to maintain their lives independently and receive higher education in the future.

Conclusion:

When a child suddenly loses her parents, she loses all protection, because her parents are her protection at any time. As a parent, you should think of Can you take care of your children when the two of you are together, but what about when both parents are gone? Therefore, buying adequate life insurance for adults first is a solid protection for the family and children.

One of the principles of buying insurance for the family: Be sure to buy insurance (life insurance) for the adults first, because the adults are the children’s insurance (protective umbrella)!

2. Buy insurance for the breadwinner of the family first

When dealing with insurance agents, people often say: "I don't need insurance, my wife and children need insurance the most."< /p>

This is the thought of many men. When agents talk to them about insurance, they wave their hands and say: "I don't need insurance. I have money. Even if I buy insurance, it will be for my wife and children." "Buy." This is also a very common group. They are generally the main source of family income and the maintainers of family life. Many people have good jobs or have achieved little success in their careers. In their view, they are a family. The boss, who can make money, is the strong one in the family, while the wife and children are relatively the weak ones in the family and need the most protection. Therefore, it is natural to buy insurance for the wife and children first. Even when talking about specific types of insurance such as medical health insurance, they said: "My company has medical insurance, but my wife and children don't have much insurance. They need insurance the most."

In fact, they cover the family. The two strong and weak relationships are confused. In terms of income, they are "strong", but from a family perspective, they are a weakness in family risk. The reason is obvious. Since the person is the main source of family income and the financial backbone of the family, once a risk occurs, it will have the greatest impact on the family. Therefore, as the financial backbone of the family, it is actually the one that needs protection the most.

When an accident or serious illness occurs to this economic pillar, the family's main source of income will be interrupted, which will reduce the quality of life and even lead to the collapse of the family economy.

Case story:

Mr. Wang is engaged in the building materials business in Shanghai, with an annual income of more than 500,000 yuan. His wife used to teach in a middle school and has a 10-year-old son. People live a happy life. Later, because her children’s tutoring was always unsatisfactory, the wife simply quit her job and became a full-time housewife, while she became her son’s tutor.

After many contacts with insurance agents, Mr. Wang decided to buy several insurance policies for his family.

But he put aside the 2 million life insurance plan that the agent designed for him and said: "I have protection now. My wife and children need protection most now. You can design a plan for my wife and children."

In this way, Mr. Wang finally bought a critical illness insurance and a pension insurance for his wife, and an education insurance for his children.

The annual premium is more than 30,000 yuan. Yuan. And I don’t have any commercial insurance. One day a year later, Mr. Wang was driving past a construction site when a brick accidentally flew down from an iron frame and hit the car. The car lost direction and crashed into a wall. He died on the spot. After learning the bad news, his wife cried to death. In the past...

In addition to limited compensation from the construction site, Mr. Wang did not receive any compensation after his death. Mr. Wang's sudden departure caused a heavy blow to the family. Mr. Wang had many business partners in business, but after he left, all those who owed him money disappeared, and all his creditors came to visit. The family's cash quickly ran out, and the wife had to sell the house to pay off the debt. Mrs. Wang suddenly went from having no worries about food and clothing to becoming homeless, not to mention the hardship of life...

Conclusion:

For a family, ensuring the financial support of the family is Protect a family, this case has taught us a profound lesson! Because the financial support of a family is so important, when making insurance planning, you must remember who should be insured the most? Who is the first to protect? That is the person who brings the main source of income to the family. As for the financial support itself, your responsibility is to make full preparations for your family, especially what to do when you can no longer make money, and life insurance is the best way to provide your family with Life safety barrier.

If this order is reversed, the insurance you buy for the so-called "people who need it most" will not only have no effect if the pillars are at risk, but will also become a heavy burden on the family.

Principle 2 of buying insurance for the family: Buy insurance for the family’s breadwinner first. Protecting the breadwinner means protecting the family!

3. Buy accident insurance and health insurance first

Many people ask when they meet an agent talking about insurance: "What good insurance do you have?" What they usually say is This kind of "good insurance" refers to investment-type insurance, and the kind of "good" refers to good investment returns. These people generally have investment experience, including using stocks, funds, bonds, futures and other investment methods. Especially when they hear that some investment insurance has stable returns, they who suffer from risks seem to be interested in it. This "new" way of investment and financial management has placed great hope on it.

This is why participating insurance was so popular when it first appeared in China. When many people hear that insurance can also be used as an investment, their eyes suddenly light up, and they forget about the original protection function of insurance. Until now, many people still have a special preference for participating insurance, investment-linked insurance, and universal insurance, and then there are education insurance and pension insurance with some savings functions, but they pay little attention to health insurance, life insurance, and accident insurance. .

There are three major risks in life: accidents, diseases and pensions. The most difficult to predict and control are accidents and diseases, and the protection significance of insurance is largely reflected in these two types of insurance. However, many people feel that the premiums of these two types of insurance are often gone forever, or come back very little, and are not considered an investment, or are "very uneconomical". Therefore, the insurance with the most protective significance has not received enough attention. of attention. So when the real risk comes, many insurances "don't work", causing some people to fall into more and more misunderstandings about insurance. In fact, it is a misunderstanding of insurance.

Scientific insurance planning should start with accident and health insurance. With these basic guarantees, we can then consider other types of insurance. In other words, if you do not have any commercial insurance, buying insurance is generally It should be in the following order:

Accident (life insurance) → health insurance (including critical illness and medical insurance) → education insurance → pension insurance → investment and financial management, dividend insurance

Case story:

Xiao Zhang is a 27-year-old young white-collar worker who has just been working for three years. He majored in finance at university and worked in a bank after graduation. He has some savings on hand. Because he has a background in finance, Xiao Zhang is very interested in investment and financial management, and pays close attention to some financial and financial products.

In 2003, one of his college classmates entered the business of an insurance company. Soon he found Xiao Zhang and recommended to Xiao Zhang two of his company’s best-selling insurance products, a health insurance and A kind of participating insurance, Xiao Zhang’s focus was on that participating insurance. He listened to the manager of the sales department where his classmate worked on the analysis of this participating insurance and compared it with similar products. He found that it was very good, so he spent the money I spent four to five thousand yuan to buy a participating insurance policy but not health insurance.

In the summer of 2004, Xiao Zhang felt very uncomfortable in his abdomen for a while. When he went to the hospital for a check-up, he was told that there was a shadow on his kidney. The doctor recommended that he go for a cancer medical check-up, and he was later diagnosed with kidney cancer. This was a huge blow to the young man and his poor family! At this time, he remembered an insurance he had bought, but when he looked up the policy, he regretted it: he bought participating insurance instead of critical illness insurance...

The family scraped together enough to get the surgery. money, but at this time his participating insurance was of no use at all, and he was still worried about the premium for the coming year. At that time, Xiao Zhang’s idea was very simple: I was still young and in good health; that participating insurance was really good.

But this taught him too much. His young life will have no chance of insurance in this life, because he can no longer buy insurance after suffering a serious illness...

Conclusion:

We are now Fashionable financial management, financial management is actually divided into three steps. The first step is to transfer risks, that is, insurance protection. This is the foundation. Only make other consumption arrangements and investment and financial management after ensuring insurance protection. Investment without insurance protection is like a castle in the air and cannot withstand wind and rain. Therefore, when choosing insurance types, putting accident and health first, and then other insurances such as education, pension, investment, etc. is scientific financial management.

The third principle of buying insurance for your family: In terms of insurance types, put accident and health first, then education, pension, investment and others

4. Buy insurance before buying a house

“I want to save money to buy a house now, and I will buy insurance after I buy a house and a car.” This is a saying that many people in their 30s who do not own a house often say to insurance agents. Similar statements are still made Some people say "I don't have the spare money to buy insurance now." In their view, insurance is a luxury consumer product that is not urgent now, or that insurance is consumed by rich people.

In fact, this concept is very incorrect. Insurance is a necessity of life. It does not need to wait until your life is well-off or even better. Insurance is a way to transfer risks. A good means, and the risk does not appear after your life is better.

Nowadays, houses, cars, and insurance have become the "three big things" in our lives in the new era. Among them, insurance is the most important. To manage finances scientifically, insurance should be bought before the RV. As we all know, a car cannot drive on the road without insurance, so why do you need to buy insurance before buying a house? Here is a story we are familiar with...

Case Story:

Lausanne Driving Accident Therefore, the old parents were forced to return to Tibet

On October 2, 1995, Luosang was driving drunk. Because the speed was too fast, he crashed into a large truck parked on the road that was being repaired. Due to his serious injuries, He died immediately at the age of 27.

Losang’s master Bolin recalled: “On the night of the incident, Lausanne had dinner with his parents and was very happy. When he left, Lausanne left his mobile phone with his parents. On the way, he was constantly being paged. There was no call to answer on the roadside, so he might have been a little anxious. In addition, he had just returned from the performance and was quite tired..."

After settling in Beijing in Lausanne, he picked up his parents who were far away in Tibet. In Beijing, he rented a house at first, then took out a loan to buy a house after conditions improved a little. Until the accident, he had only paid off the loan for a few years. After the accident in Lausanne, his parents suffered the loss of their beloved son and the pain of being forced to return to their hometown. Because after the accident in Lausanne, the mortgage could no longer be repaid, and the two elderly people had no source of income, so the bank took back the house.

Conclusion:

This case is very special. Lausanne was driving under the influence of alcohol. Since the accident caused by drunk driving is excluded, even if there is insurance, no compensation will be paid. But the old parents in Lausanne who were forced to return home gave us too much to think about. If you don’t have insurance after taking out a loan to buy a house, it is very unscientific and dangerous. I believe that many people who have just bought a house have already felt the pressure. Before buying a house, they lived a free life, but after buying a house, the pressure becomes acute. Why? A 20-year mortgage means that your work cannot be interrupted during these twenty years. Once work is interrupted due to accidents or illness and your income is interrupted, you will be even more stressed. And no one can guarantee that you will not get sick or have any accidents during twenty years. If a major personal accident occurs, such as death or disability, and your income is permanently interrupted, the house will be repossessed if there is no other way. Your family will be the most harmed at that time. Generally speaking, how much life insurance you will have during the loan repayment period depends on how much mortgage you have to repay. For example, if your mortgage loan is 300,000 yuan, then you need term or whole life insurance of at least 300,000 yuan to prevent personal risks during the loan repayment period. It would be even better if you can buy health insurance at the same time to provide good health protection.

Principle 4 of buying insurance for your family: You must buy insurance before buying a house. It protects you and your family!

5. Even young people should buy insurance

According to statistics of people who have purchased insurance in major cities, the current people buying insurance are mainly people in the 30-45 age group. They may Buy insurance for yourself or a family member. Young people in the 20-30 age group, including college students who are not yet independent and graduates who have not been out of society for a long time, rarely choose insurance. They usually think that they are young, in good health, and will not get any diseases, but they feel that accidents are far away from them, and other risks such as pensions are even further away from them, so they do not need insurance.

But we now see that serious diseases are affecting younger and younger people. More than 20 years ago, when we heard that someone around us had cancer, we would be extremely surprised. But now if you hear that a 2-year-old child has a malignant tumor, you will not be too surprised. Nowadays, air pollution, food pollution, and environmental pollution , too much pressure on students and many other reasons have become the inducements for young people to get major diseases.

Poisonous leeks pumped out with pesticides, black-bone chickens raised with arsenic, fish fed with contraceptive pills, poisonous hams, poisonous pickles, etc. make it hard for us to guard against. There is a building in Beijing Children's Hospital that is almost full of major diseases such as leukemia and malignant tumors. News about young patients and college students suffering from serious diseases also frequently appear in major media. If you take a walk around the inpatient departments of major hospitals, you will deeply understand what "shocking" means. If you ask: "Do you need insurance?", then don't even think about leaving today.

In such an environment, on the basis of taking precautions and health care, we must also prepare for emergencies. Don’t expect that one day all the skies will be blue and all the food will be available. Now that you are safe and your life is no longer stressful, one thing you need to prepare is where will the medical expenses come from if you suffer from a serious illness?

Case 1:

On February 1, 2005, the Beijing Times published this news: "500,000 medical expenses threaten young boy with blood cancer."

A college student who has represented the country in international rugby competitions many times and achieved excellent results was diagnosed with acute myeloid leukemia. Niu Jian, 22, is looking forward to the society lending a helping hand to him. , his life can be extended. Niu Jian is now being treated at Peking University Third Hospital. Niu Jian is a 2002 student of the Law Department, School of Humanities and Development, China Agricultural University. He has participated in major domestic and international events such as the China, Japan and South Korea Youth Rugby Championship and the Asian Rugby Championship. He has become a reserve member of the national team from a national youth player.

In September 2004, at the first World University Rugby Championship held at China Agricultural University, Niu Jian, who had always been in good physical condition, gradually felt exhausted. When he returned to his home in Shijiazhuang to rest, he was diagnosed with acute myeloid leukemia, which is called a "blood cancer," during an examination at the Second People's Hospital of Hebei Province.

The attending physician told Niu Jian’s parents that currently the most effective way to treat leukemia is hematopoietic stem cell transplantation. The doctor found that 5/6 of Niu Jian’s mother’s genes are consistent with Niu Jian’s genes, so the transplant can be performed. Hematopoietic stem cell transplant surgery, and the surgery should be done as soon as possible. "Niu Jian's body is relatively large, and the most conservative estimate is more than 500,000." For Niu Jian, whose parents are ordinary workers, the cost is astronomical. Niu Jian's teammates, classmates and teachers have lent a helping hand. Although 50,000 yuan has been raised for him, the 500,000 yuan needed for the operation is still only a drop in the bucket.

Case 2:

On October 17, 2004, Liu Hongbin, a student at Beijing Jiaotong University, died suddenly during the 2004 "Capital University Marathon Challenge". On October 20, teachers and students of Beijing Jiaotong University held a memorial service for Liu Hongbin. "Life is fragile, we can only live strong!" A banner in memory of Liu Hongbin made by students hung between two trees in front of the experimental building of Beijing Jiaotong University. Hanging below are notes written by classmates as well as paper cranes and white flowers.

On the issue of compensation after the "sudden marathon death incident", the school offered a condition of "compensation of 40,000 to 50,000 yuan per day," and this money also included the food of 10 of Liu Hongbin's family members during their stay in Beijing. , housing, transportation and other expenses, "if these are deducted, we may only have more than 10,000 yuan left. Liu's father refused to agree to such conditions at first. Liu Xijian said: "We are farmers, and our family background is not good. It is not easy to raise a child and send him to college. The family just wants to rely on the baby to support him in the future. Now the child If it is gone, who will fill the holes in our future life, including pension and other aspects? "Liu's father became more and more excited, while Liu's mother and Liu's aunt could not stop crying...

Perhaps Liu's father was not aware of rural insurance because of the family's poor financial situation, and did not Buy insurance for Liu Hongbin, but through this incident, every young person can realize what insurance is...

Conclusion:

Risks always seem so ruthless. But if. It's too late to think about insurance when the risk comes. Insurance is a scientific plan to prepare for a rainy day. As young people or their parents, we should establish this risk awareness as early as possible. Taken together, young people have the following problems

Three reasons to buy insurance:

1. Accident. Liu Hongbin’s father raised this very cruel question. He only has one son. Now that his son has passed away in an accident, who will take care of them in their old age? Parents work hard to raise their children, and every child has the responsibility to support their parents.

2. Illness As mentioned in Case 1 above, major illness insurance can resolve critical situations.

3. Scientific planning. It is foreseeable that it will be difficult to survive without insurance in the future. So since you need to get insurance in the future, it is better to get insurance now, if your financial conditions permit (including those with income). Young people with higher incomes). Because premiums increase with age, it is more “cost-effective” to buy insurance when you are young.

Principle 5 of buying insurance for your family: It is more important to buy insurance when you are young. What you buy is a responsibility and a scientific plan for the future!

Extended reading: How to buy insurance, which one is better, and step-by-step instructions to avoid these "pitfalls" of insurance