Is it better to choose fixed term or lifelong annuity insurance? What are the differences between annuity insurance and life insurance?

Is it better to choose fixed term or lifelong annuity insurance?

The conclusion of buying annuity insurance is different from person to person. If it is for the purpose of purchasing education funds for children, life annuity insurance can be selected if the budget is high, and term annuity insurance can be selected if the budget is insufficient. If the purpose is to allocate endowment insurance, it is better to choose lifelong annuity insurance when economic conditions permit, so as to avoid the risk of "longevity". Fixed term annuity insurance and life annuity insurance meet different security needs. In order to select products that are suitable for you, it is important to know your security needs and learn to act according to your ability. Choosing regardless of economic conditions may be counterproductive.

What are the differences between annuity insurance and life insurance?

1. The concept is different: annuity insurance takes the survival of the insured as the payment condition of the insurance benefits. The applicant pays the premium in the early stage, and the insured can start to receive the annuity when they reach the agreed age for receiving the annuity, such as 60 and 70 years old; Life insurance is based on the survival and death of people as the conditions for the payment of insurance benefits, mainly for death or total disability;

2. There are differences in the way of receiving annuity insurance: annuity insurance can be received by year, half a year, quarter or month only after reaching the agreed receiving age. Some annuity insurance can also be received at a time, or the annuity can be put into the account for compound interest and interest increase; Life insurance requires the insured to be dead or totally disabled before receiving the insurance benefits. However, if the life insurance is increased, the policy holder can receive part of the cash value of the policy at any time by way of insurance reduction during the protection period;

3. There are differences in the amount of benefits: the amount of annuity insurance benefits is related to the life time of the insured. Generally, the longer the life time of the insured is, the more annuity insurance benefits will be paid; Life insurance is a one-time payment of insurance benefits after the death or total disability of the insured, which can generally compensate the insured amount;

4. The purpose of insurance is different: annuity insurance is mainly for compulsory reserve; Life insurance is mainly for wealth inheritance and tax avoidance;

5. Income difference: annuity insurance generally gains more income by adding a universal account, with a minimum income of 1.75% - 3%, but the actual income will be higher, but it is uncertain. And annuity insurance income needs to be accumulated over the years, and there is not much income in the short term; The increased life insurance in the life insurance can lock in the income in advance. The insured amount will increase year by year according to the interest rate agreed in the insurance contract, and its cash value will also increase with the increase of the insured amount. The interest rate is generally about 3.5% - 3.8%. However, if it is fixed life insurance, the amount of coverage will not increase.

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