What kind of insurance and financial management concepts should you have?

1. The concept of the "Three, Four, Six" financial management method

At different stages of life, individuals or families have different financial situations, capital needs and risk tolerance, so financial management needs, The demand for life insurance is also different. Personal growth life cycle, family life cycle, individual and family income levels are all closely related to the formulation of personal financial planning.

Generally speaking, the "Three, Four, Six" financial management method means that financial planners should provide scientific and objective financial planning guidance to customers according to their different families, income levels and age groups. Specifically, the "three" in the "three-four-six" financial management method refers to the "three types of income": high-income people, middle-to-high-income people and middle- and low-income people. "Four" refers to the "four types of families": families in the formative period (from marriage to having children), families in the growth period (from the birth of children to the completion of their studies), families in the mature period (from children joining the workforce to retirement of the couple) and aging families Family (couples retire to death); "Six" refers to the "six age groups": exploration period (15-24 years old), establishment period (25-34 years old), stable period (35-44 years old), and maintenance period (45-54 years old), empty nest period (55-64 years old) and retirement period (65 years old - death).

2. Use the "346" financial management method for personal life insurance planning

(1) "Six" age stages and life insurance purchase

People are families During the growth and life cycle of an individual, their personal income and expenditure balance is very different in different age groups. Of course, the demand for financial management products is also different, so we take the individual life growth cycle as ten years. One age group is further divided into six age stages, and their financial management needs are analyzed separately to determine personal financial management plans for different age stages.

1. Exploration period

The exploration period is about ten years between the ages of 15 and 24. The main problem faced by individuals during the exploration period is the choice of universities and colleges for higher education. After graduating from a bachelor's degree, whether to find a job or continue to pursue further studies. If you want to study abroad, you need to consider the cost in advance. Financial aspect: During this period, individuals are usually single, and their living situation is living with their parents or in school dormitories.

This short-term personal income is usually relatively thin, and may come from part-time work or parents’ pocket money, as well as school awards and grants. Therefore, in terms of life insurance planning, since income is very limited, low-premium accident insurance and medical insurance are mainly considered. Students can consider purchasing student comprehensive protection insurance, and single young people can consider purchasing term life insurance with an insurance amount of 100,000-200,000 yuan or accidental death insurance with an insurance amount of 200,000-400,000 yuan, with both parents being the beneficiaries.

2. Establishment period

The establishment period is approximately between the ages of 25-34. At this time, the individual has just entered the society and has just started in work and career. Its financial characteristics are very Mingming: It means low income and high expenditure (the "money earners" basically appear in this age group), and most people at this stage will choose a life path of choosing a spouse, getting married, and having children, so they often have to ask for help due to lack of funds. to parents. It is recommended that young couples work hard at this stage to increase bank savings; and pay attention to accumulating funds to prepare for the down payment of a house. In terms of life insurance planning: (1) Purchase a term life insurance with an insured amount of 5-10 times the annual income, with your spouse as the beneficiary. (2) Purchase a term life insurance with a sum assured of 2-5 times the annual income, with children as beneficiaries. (3) Purchase children’s education insurance according to the actual situation.

3. Stable period

The stable period is approximately between the ages of 35 and 44. Everyone basically has about 10 years of work experience. After going through this stage, Individuals should fully understand their career development direction.

In terms of personal financial preparation: First of all, for most people in this age group, their children have entered primary school or middle school, so families should actively accumulate sufficient education funds for their children’s higher education; secondly, many people in this age group have People of all ages have bought their own houses. If they buy with a loan, they need to prepare enough funds to repay the house loan; again, people have entered middle age at this time, so they must also have a preliminary awareness of preparations in terms of retirement and pensions. .

In terms of life insurance planning, in addition to the insurance purchased in the previous stages, due to the increase in comprehensive financial resources, you can also increase the types of insurance purchased: (1) Purchase term life insurance. The life insurance insurance amount is always equal to the house loan. The amount is a decreasing insurance amount life insurance. Its significance is that if the repayer unfortunately dies due to some unexpected reasons, the housing loan can continue to be repaid by the insurance company, instead of being auctioned by the bank and the surviving family members will lose the house. (2) Purchase education insurance to continue planning for future education expenses for your children in education.

4. Maintenance period

The maintenance period is approximately between the ages of 45 and 54. After about 20 years of hard work, individuals will more or less achieve certain results in their careers. , its economic strength is the strongest at this time. In terms of financial planning: children are basically in the higher education stage (undergraduate or graduate) at this time, and the children’s education funds have been prepared before; if you take a loan to buy a house, the house loan has basically been paid off; therefore, the main focus of personal finance management at this time is The goal is to prepare an adequate pension. In terms of life insurance planning: (1) Purchase enough health insurance to meet the increasing medical and nursing expenses as you age; (2) Purchase pension insurance. The sooner you buy it, the better. Buy it earlier and you will get the same insurance. The premium will be lower. Of course, since personal economic strength is strongest at this time, qualified individuals can consider the investment function of insurance while considering its protection function when purchasing insurance.

5. Empty nest period

The empty nest period is approximately between the ages of 55 and 64. Most people are in the period before and after retirement at this stage. From a career perspective, managers At this stage, most of them should be in executive positions; technicians have accumulated a lot of technical experience and have become senior technicians or senior engineers; children are generally employed, and they may continue to live with their parents or live outside. Financial situation: People in this age group should adopt a sound financial management strategy, reduce the purchase of investment products, increase the number of deposits and increase the amount of stable income financial products. In terms of life insurance planning: (1) If you purchase pension insurance, you must continue to pay premiums. If you feel that the amount is not enough, you can increase the insurance amount appropriately; (2) Considering estate planning issues, you can purchase whole life insurance because insurance has a legal tax avoidance function.

6. Pension period

The pension period is the period after the age of 65. If you are re-employed by the employer in your career, you can continue to use your spare energy or work as a consultant. At this time, your children Most of them are married and have their own families. In terms of financial planning: receive pensions and spend your old age in peace, with fixed-income products as the main financial products. In terms of life insurance planning: receive pension insurance benefits until death.

(2) "Four" types of family and life insurance purchase

Personal financial management not only analyzes the life cycle of personal growth, but also considers the family life cycle, because financial planning is based on the entire family. out. The family life cycle can be divided into four stages: formation, growth, maturity and aging. The formative period is from marriage to the birth of the child, the growth period is from the birth of the child to the completion of schooling, the mature period is from the completion of schooling and independence to the retirement of the couple, and the aging period is from the retirement of the couple to the death of both parents.

Generally, in the formation stage, families have a strong risk tolerance, and then the proportion of high-risk investments gradually decreases, and savings, pensions and medical reserves gradually increase.

Financial management needs of different family life cycles

Cycle

Family changes

Risk tolerance

Major household expenditures

Insurance arrangements

Formation Period

Marriage to birth of children (1-3 years)

Very strong

House purchase

With the increase in family members, the Life insurance amount

Growth period

Children’s birth to completion of school (18-22 years)

Strong

Higher education

Reserve children’s education expenses in the form of education annuity

Maturity period

From when the children start working to when the couple retires (10-15 years)

Weaker

Prepare for retirement funds

Prepare for retirement with pension insurance or deferred annuity

Senescence period

Couples retire until both of them pass away

Weak

Living and medical expenses

Insure nursing insurance or convert pension insurance into immediate annuity

1. Formation period

The formation period refers to the period from the couple getting married to having children, usually 1-3 years. The financial situation during this period: gradually stabilizes from the instability of the single period. Many couples will buy their own homes, so they need to prepare a down payment. You must also plan for the education of your children born in the future. In terms of life insurance planning: (1) Purchase medical insurance and accident insurance to prevent major fluctuations in financial status due to serious illness or accidents; (2) Purchase term life insurance with your spouse as the beneficiary to prevent your death and the decline in your spouse’s living conditions; (3) Purchase term life insurance with the life insurance amount equal to the mortgage amount to prevent the house from being auctioned due to the death of the repayer.

2. Growth period

The growth period refers to the period from the birth of the child to the completion of schooling. It generally lasts for 18-22 years. In terms of family status, the couple’s work experience continues. Improvement, work skills continue to be strengthened, at the same time, the age of children gradually increases, financial status: family income gradually and steadily increases, education expenses are increasing, as the family income and expenditure situation gradually enters a stable state, investment finance should be gradually increased The quantity of the product purchased. In terms of life insurance planning: (1) Purchase education insurance to accumulate education security funds for your children; (2) Purchase pension insurance and medical insurance to relieve worries caused by the increasing age of the couple; (3) Purchase new investment insurance, including Including participating insurance, investment-linked insurance and universal insurance.

3. Maturity period

The maturity period refers to the period from when the children start working to when the couple retires. It is generally 10-15 years. At this time, the family has entered a completely stable period, and the children They have become financially independent, their family income has steadily increased, their expenses have continued to decrease, their total assets have continued to increase, and their liabilities have gradually decreased. Their careers have also entered their peak period. However, the couple has grown older and their physical condition has continued to decline. In terms of financial arrangements: the main task is to prepare for increasing retirement funds, the risk investment ratio will gradually decrease, and the stable investment ratio will increase. Life insurance planning: mainly purchase pension insurance to increase retirement pension after retirement.

4. Aging period

The aging period refers to the period from retirement to death. As the overall income declines, living and medical expenses continue to increase, and the family's ability to resist risks gradually decreases. . In terms of financial arrangements: it is necessary to emphasize the safety of funds, reduce the proportion of risk investment, and arrange funds to spend your old age and arrange for funeral arrangements. Life insurance planning: receiving pension from endowment insurance.

(3) "Three" income levels and life insurance purchase

According to economic income status, consumers are divided into high-income class, middle-high-income class and low-middle-income class. [4] Develop appropriate life insurance plans by analyzing their main risks.

1. High-income class

The high-income class refers to that group of people who have extremely high economic income levels, are among the best in the country, and have a very strong ability to withstand risks. They usually refer to those who get rich first. The group of people who have risen up, such as successful entrepreneurs, bosses, cultural and sports stars, etc. One characteristic of the financial situation of these people is that their income and expenditure are very large. In terms of life insurance planning: (1) Purchase whole life insurance to legally avoid taxes on your huge inheritance. Although the collection of inheritance tax in our country is still under planning, taxation of large estates will be a matter of time; (2) Purchase accident insurance to avoid high taxes. The financial fluctuations of high-income people after encountering accidents are large and have a greater impact on families. Therefore, accident insurance can make the unexpected expenses of high-income people more stable; (3) Purchase health insurance. After high-income people have health problems, their income losses are higher than those of other people. Classes have greater losses, so they should purchase high-end medical and medical combination health insurance to relieve worries about health problems. In short, high-income people can buy protection insurance, health insurance, whole life insurance and other insurances, and the premiums account for about 20% of their annual income.

2. Middle- and high-income groups

Mid- and high-income groups refer to those groups who live a superior and prosperous life and have a high and stable income level, but who no longer enjoy the welfare system of state-owned enterprises, such as Such as senior staff, middle and senior managers and senior technical personnel in foreign companies. These people have strong ability to purchase insurance, have a large demand for insurance, and have a relatively high recognition of insurance, so they are the main targets for insurance sales. In terms of life insurance planning: (1) Purchase pension insurance and whole life insurance to relieve worries about retirement and death; (2) Purchase health insurance and medical insurance to avoid a significant drop in income level due to physical health problems; (3) Purchase new life insurance , middle- and high-income people live a relatively prosperous life, and often have surplus funds after purchasing basic insurance. They can consider purchasing dividend-based, universal insurance and investment-linked insurance to achieve steady growth in assets; (4) Purchase accident insurance to benefit your family. people. In short, middle- and high-income people can purchase pension insurance, whole life insurance, health insurance, investment insurance, and accident insurance. The total insured amount is lower than that of the high-income group, and the total premium accounts for 10-20% of the annual income.

3. Low- and middle-income classes

The low- and middle-income classes refer to the three lower classes with low income, low welfare, and low ability to resist risks. Since our country is in the primary stage of socialism, The proportion of this group of people is relatively large. When it comes to purchasing insurance, the middle- and low-income groups are divided into two categories: one is those who have just solved the problem of food and clothing and cannot afford to buy any commercial insurance; the other is those who have enough income to meet the basic necessities of life and still have the ability to buy insurance. . Since the protection capacity of my country's social insurance is limited, many people also need to purchase commercial insurance to supplement it. In terms of life insurance planning: (1) When purchasing term life insurance and short-term accident insurance, due to low income, try to consider insurance types with low premiums and comprehensive protection; (2) When purchasing medical insurance, due to the ability of low- and middle-income people to resist risks Weak, this is the most important thing to protect your health and protect against serious illness; (3) Choose savings insurance as an investment type. Your life is not rich to begin with. Savings insurance can return the principal when the time is up and you are not out of danger. In short, low- and middle-income people can buy accident insurance and critical illness insurance, and the premiums account for 3-10 of their annual income.

3. Conclusion

In short, life insurance is one of the important tools in the process of personal financial management. Life insurance financial management plays a very important role in personal financial management. It has other financial management tools. advantages and features that it does not have. At present, the concept of insurance is gradually gaining popularity, and life insurance financial management should attract people's great attention. As a financial management method, the "three-four-six" financial management method divides individuals into different age groups and different income levels, divides families into different periods, and manages their finances separately. This method is more efficient and has more scientific financial management effects, and has been successfully used in life insurance financial management. Therefore, every insurance company agent should be proficient in the "Three, Four, Six" life insurance financial management method, so that they can more efficiently plan life insurance financial management for customers, and at the same time achieve successful sales of the company's life products more easily.

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