I. The concept of the "three, four, six" financial management method

At different life stages, individuals or families have different financial status, capital needs and risk tolerance, and thus financial needs, life insurance needs are also different, personal growth life cycle, family life cycle, the income level of the individual and the family have a close relationship with the development of individual The development of financial planning has a close relationship.

The "3-4-6" financial management method, in general, means that financial planners should provide scientific and objective financial planning guidance to clients according to their different families, income levels and age groups. Specifically, the "three" in the "3-4-6" financial management method refers to "three types of incomes": high-income people, middle-upper-income people, and low- and middle-income people. "Four" refers to "four types of families": formative families (from marriage to children), growing families (from the birth of their children to the completion of their education), mature families (from the children's participation in the workforce to the couple's retirement) and aging families (the couple's retirement to death);. The "six" refers to the "six age groups": exploration (15-24 years), establishment (25-34 years), stabilization (35-44 years), maintenance (45-54 years), empty nest (55-64 years) and old-age (65 years-death). death).

Two, with "three, four, six" financial method for personal life insurance planning

(a) "six" age stage and life insurance purchase

People are the constituent elements of the family, the individual in their growth life cycle, their personal The balance of income and expenditure in different age groups are very different, of course, for the demand for financial products are not the same, so we take the life of the individual growth cycle to ten years for an age and then divided into six age stages, respectively, to discuss and analyze their financial needs, so as to determine the personal financial plan for different age stages.

1. Exploratory period

The exploratory period is between the ages of 15-24 years old, and the main problems faced by individuals in the exploratory period are the choice of universities and colleges at the higher education level, and whether to be employed after graduation from undergraduate studies or to continue to take the route of further education, and if one goes abroad for further studies, one needs to consider in advance the cost of the problem. Financial aspects: this period of time individuals are usually single, living with their parents or living in the school dormitory.

Income for individuals in this short period of time is usually quite meager, and may come from part-time jobs or pocket money from parents, as well as school awards and grants. Therefore, in terms of life insurance planning, since income is very limited, the main consideration is low-premium accident and medical insurance. Students can consider purchasing student comprehensive protection insurance, and single young people can consider purchasing term life insurance with a sum insured of 100,000-200,000 or accidental death insurance with a sum insured of 200,000-400,000, with the beneficiaries being both parents.

2. Establishment period

Establishment period is between the ages of 25-34, when an individual has just entered the society, and is just starting out in his work and career, and his financial characteristics are very distinctive: low income and high expenditure ("moonlight family" basically appears in this age group), and most people in this stage will choose to choose a spouse, get married, or get married. At this stage, most people will choose to choose a spouse, get married and have children, so they often have to turn to their parents for help due to a lack of funds. It is recommended that young couples work hard to increase their bank savings at this stage; and pay attention to accumulating funds for a down payment on a home. In terms of life insurance planning: (1) purchase a term life insurance policy with an insured amount of 5-10 times the annual income, with the spouse as the beneficiary. (2) Purchase a term life insurance policy with a coverage amount of 2-5 times your annual income, with your children as beneficiaries. (3) Purchase children's education insurance as appropriate.

3. Stabilization period

The stabilization period is about 35-44 years old in this decade, each person basically has about 10 years of work experience, after this stage, individuals should be fully clear about the direction of their career development. In terms of personal financial preparation: most people in this age group, first of all, their children have entered elementary school or secondary school learning, so the family should be active for the children's higher education to accumulate enough education funds; secondly, many people in this age group have purchased their own homes, if it is a loan to buy, then you need to be ready to pay back the home loan enough money; again, at this time people have entered the middle age, so in terms of retirement pensions also need to initially have a sense of preparation.

Life insurance planning, in addition to the first few stages of the purchase of insurance, due to the increase in comprehensive financial resources, but also in the increase in the purchase of insurance varieties: (1) the purchase of term life insurance, life insurance coverage is always equal to the amount of housing arrears, belonging to the amount of diminishing life insurance, the significance of which lies in the repayment of the person due to certain unforeseen reasons unfortunately passed away, the housing loan can continue to be repaid by the insurance company and the bank will not auction and make the life insurance. This means that if the payer passes away due to some unforeseen reason, the insurance company can continue to repay the home loan, and the living family members will not lose their home to the bank. (2) Purchase education insurance to continue planning for your children's future education expenses.

4. Maintenance period

Maintenance period is about 45 years old - 54 years old period, individuals after about 20 years of hard work, in the career more or less will achieve certain results, its economic strength at this time is the strongest. In financial planning: children at this time basically in the stage of higher education (undergraduate or postgraduate), children's education in the previous has been properly prepared; loan to buy a house, the housing loan has been basically paid off; therefore, at this time, the main goal of personal finance is to prepare enough pension. In life insurance planning: (1) buy enough health insurance to meet the increasing medical costs and care costs with age; (2) buy pension insurance, the sooner you buy the better, buy early, the same amount of premiums will be less. Of course, because at this time the individual economic strength is the strongest, so the purchase of insurance when the conditions of the individual in the consideration of its protection function at the same time can also consider the investment function of insurance.

5. Empty Nest Period

Empty Nest Period

Empty Nest Period is about 55-64 years old, most people at this stage in the period before and after the retirement, from the career, management personnel in this stage should be done in most of the senior management position; and technical personnel have accumulated a lot of technical experience, so as to become a senior technician or senior engineers; children are generally already employed, they may continue to live with their parents or outside the home. They may continue to live with their parents or live outside. Financial situation: This age group should adopt a prudent financial management strategy, reduce the purchase of investment products, increase the number of deposits and increase the amount of stable income financial products. Life insurance planning: (1) the purchase of pension insurance to continue to pay premiums, if you feel that the amount is not enough can also be appropriate to increase the amount of insurance; (2) taking into account the issue of estate planning, you can buy whole life insurance, because insurance has a legal tax avoidance function.

6. Pension period

Pension period is the period after 65 years of age, career if the unit is rehired, you can continue to play a role, you can also do consultants, etc., the children at this time, basically have become a family, with their own families. Financial planning: to receive a pension, to spend their twilight years in peace, financial products to fixed income products. Life insurance planning: receive pension insurance premiums until death.

(2) "four" kinds of families and life insurance purchase

Personal finance not only analyzes the life cycle of personal growth, but also consider the family life cycle, because financial planning is made based on the whole family. The family life cycle can be divided into four periods: formation, growth, maturity and aging. The formation period is from marriage to the birth of children, the growth period is from the birth of children to the completion of children's schooling, the maturity period is from the completion of children's schooling and independence to the couple's retirement, and the aging period is from the couple's retirement to the death of all of them. Generally, the family's ability to bear risks is stronger in the formative stage, followed by a gradual reduction in the proportion of high-risk investments, and a gradual increase in savings, retirement and healthcare provisions,

Financial needs of different family life cycles

Cycle

Family changes

Risk bearing capacity

Major family expenditures

Insurance arrangement

Formative period

Marriage to children's birth (1-3 years)

Very strong

Home purchase

Increase life insurance coverage as family members increase

Growth period

Children's birth to completion of education (18-22 years)

Strong

Higher education

To Educational annuities to reserve for children's education

Maturity

Children in the workforce to couple's retirement (10-15 years)

Weak

Preparation for retirement

Preparation for retirement in the form of pension insurance or deferred annuities

Senescence

Couple's retirement to death of all

Weak

Taking out caretaker insurance or converting pension insurance to immediate annuity

1. Formative period

The formative period is the period from the couple's marriage to the birth of a child, which is usually 1-3 years. The financial situation during this period: gradually stabilizing from the unstable period of being a single person, and many couples will be purchasing their own homes, so they have to prepare for the down payment and also plan for the education payment for their future Planning for the education of children born in the future. Life insurance planning: (1) buy medical insurance and accident insurance, to prevent major illnesses or accidents lead to large fluctuations in the financial situation; (2) buy term life insurance, with the spouse as the beneficiary, to prevent his or her own death and make the spouse's survival situation declined; (3) buy term life insurance, life insurance coverage is equal to the amount of the mortgage, to prevent the death of the repayment of the person who led to the auction of the house.

2. Growing up period

The growing up period refers to the time from the birth of the children to the completion of the children's education, generally lasts 18-22 years, the family situation of the husband and wife's work experience continues to improve, job skills continue to be strengthened, at the same time, the children's age is gradually increasing, the financial situation: the family income is gradually and steadily increasing, the expenditure on education costs are more and more, with the family income and expenditure situation gradually enter a stable state, should gradually increase the number of investment financial products to buy. Life insurance planning: (1) purchase education insurance, for children to accumulate education protection money; (2) purchase pension insurance and medical insurance, lifting the worries arising from the gradual increase in the couple's age; (3) purchase of new types of investment insurance, which includes participating insurance, investment-linked insurance and universal insurance.

3. Maturity period

Maturity period refers to the children to join the work to the couple's retirement period, generally 10-15 years, the family at this time has entered a period of complete stability, the children have been economically independent, the family income steadily increased, the expenditure is decreasing, the total amount of assets continue to increase, the liabilities are gradually reducing the cause of the same time into the peak period, but the couple's age, the physical condition is declining. However, the couple is getting older and their health is declining. Financial arrangement: the main task is to prepare for the increase of pension, the risk investment ratio is gradually adjusted downward, and the stable investment ratio should be increased. In terms of life insurance planning, the main task is to buy pension insurance to increase the retirement pension after retirement.

4. Aging period

The aging period refers to the period from the couple's retirement to their deaths, with the decline in overall income, living and medical expenses increasing, the family's risk-resistant ability is gradually declining. In terms of financial arrangements: we should emphasize the safety of funds, reduce the proportion of risky investment, and arrange funds for a peaceful old age and arrange for the aftermath. In terms of life insurance planning: to receive pension insurance pension.

(C) "three" income levels and life insurance purchase

In accordance with the economic income status, consumers are divided into high-income class, middle-high income class and middle-low income class. [4] By analyzing the major risks of each, appropriate life insurance planning is developed.

1. High-income class

The high-income class refers to the part of the population that has a very high level of economic income, ranks among the best in the country, and has a very strong resistance to risk, which usually refers to the part of the population that gets rich first, such as successful entrepreneurs, bosses, and sports and cultural stars. The financial situation of this part of the population is characterized by a very large income and expenditure. Life insurance planning: (1) buy whole life insurance, for their own huge inheritance legal tax avoidance, although China's inheritance tax is still in the planning process, but the large amount of inheritance tax is sooner or later; (2) buy accident insurance, high-income people suffered an accident after the financial fluctuations of the amount of large, the family impact is even greater, so the accident insurance can make the high-income group of people with accidental expenditures more smoothly; (3) buy health insurance, high-income people with health problems, the income of the family, the income of the people with health problems, the income of the family, the income of the people with health problems, the income of the high-income people with health problems, the income of the high-income people with health problems. High-income people have health problems, income loss is greater than the loss of other classes, so to buy high-end medical, medical combination of health insurance, to lift the worries of health problems. In short, high-income people can buy protection insurance, health insurance, whole life insurance and other insurance, premiums accounted for about 20% of annual income.

2. Middle- and high-income groups

Middle- and high-income groups refer to the part of the population that lives a privileged and affluent life, with a high and stable level of income, but no longer enjoys the welfare system of the state-owned enterprises, for example, such as the senior staff of foreign enterprises, middle and high-level managers, and senior technical personnel. These people have a strong ability to purchase insurance, have a high demand for insurance, and have a relatively high degree of recognition of insurance, so they are the main target of insurance sales. In terms of life insurance planning: (1) purchase pension insurance, whole life insurance, for retirement, death to lift the worries; (2) purchase health insurance, medical insurance, to avoid a significant drop in income level due to health problems; (3) purchase new types of life insurance, middle- and high-income people are more affluent, and often there are still surplus funds after the purchase of the basic insurance, you can consider the purchase of dividend-paying type, universal life insurance and investment-linked insurance to achieve steady growth of assets; (4) purchase new life insurance, middle and high-income people are more affluent, and often there are also spare funds after the purchase of basic insurance, you can consider the purchase of profit-sharing, universal insurance and investment-linked insurance to realize the steady growth of assets; (5) purchase new life insurance. Insurance to realize the steady growth of assets; (4) the purchase of accident insurance, with family members as beneficiaries. In short, middle and high-income people can buy pension insurance, whole life insurance, health insurance, investment insurance, accident insurance, its total insured amount is lower than the high-income class, the total premiums accounted for 10% -20% of annual income.

3. Lower-middle-income class

Lower-middle-income class refers to the three low-income class with low income, low welfare, and low risk-resistance, and since China is in the primary stage of socialism, the proportion of this part of the population is still relatively large. For the purchase of insurance, low and middle-income class is divided into two categories: one is just to solve the problem of food and clothing, can not afford to buy any commercial insurance; the other is in addition to meet the food, clothing, housing and transportation, income surplus, and the ability to buy insurance. Because of the limited ability of China's social insurance protection, many people also need to buy commercial insurance to supplement. Life insurance planning: (1) the purchase of term life insurance, short-term accident insurance, due to low income, in the variety of reasons, try to consider low premiums, comprehensive protection of the type of insurance; (2) the purchase of medical insurance, due to the low and middle-income people weaker anti-risk ability, as a way of insuring good health, insuring against serious illnesses is the most important; (3) in the type of investment in the type of insurance to choose the savings type of insurance, would have been less than a rich life, the savings type of insurance to time Uninsured can return the principal. In short, low- and middle-income people can buy accident insurance, major medical insurance, premiums accounted for 3% -10% of annual income.

Third, conclusion

In short, life insurance is one of the important tools in the process of personal finance, life insurance finance plays a very important role in personal finance, it has other financial tools do not have the advantages and characteristics. At present, the concept of insurance is gradually gaining popularity, and life insurance management should attract great attention from people. The "3-4-6" financial management method is a financial management method that divides individuals into different age groups and income levels, and divides families into different periods for separate financial management. This method is more efficient and scientific, and has been successfully utilized in life insurance management. Therefore, every insurance company agent should master the "three, four, six" life insurance financial management method, so as to be able to do a good job of life insurance financial planning for customers more efficiently, and at the same time more easily realize the success of the company's life product sales.

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