Why are most people not suitable for buying financial insurance, and what are the advantages of financial insurance?
The essence of security insurance is a kind of consumption. Through the annual premium expenditure, we obtain the amount of insurance with high leverage. Security products transfer our family financial risks caused by death and high medical expenses. In contrast, the essence of financial insurance is a kind of investment. Financial insurance is essentially no different from P2P, bonds, stocks and other ways, which are both investment tools. However, due to the robustness of insurance, it has some remarkable characteristics compared with other ways. If the security insurance has been fully configured (accident insurance, serious disease insurance, term life insurance, medical insurance), it is possible to buy financial insurance, and the purchase of financial insurance is mainly used for the following aspects: children's education fund, pension, asset preservation, asset inheritance, etc.
The role of financial insurance in use, the first is forced saving - reasonable financial planning. The hot sale of financial insurance, although the pit of many people, but also disguised popularization of the importance of financial planning. Chinese people have never been in the habit of financial planning, but we have seen that foreign countries have formed a relatively stable lifestyle and standard. Many young people have learned the role of financial insurance from their parents, so they will have a high degree of acceptance. It is a very stable choice to deal with their children's education and retirement through annuity insurance. Taking pension insurance as an example, the effect of pension insurance and life insurance is opposite. We buy term life insurance for fear of income loss caused by early death. And pension insurance is worried that we live too long, not enough money to spend.... So we need to be able to prepare for a rainy day. A true pension is a steady stream of cash that lasts as long as life, with a certain income. This is the only way to ensure that no matter how volatile and changing the economic environment may be, we can continue to receive money from insurance companies to cover our living expenses and medical burdens in old age. Therefore, if we have the needs of education and pension, we can solve them through financial insurance when we are young. People with accounting habits will know that most of us consume very randomly and irrationally. In this case, financial insurance is an option that can be considered. The second is risk diversification - the proper allocation of household assets. For high net worth individuals, the core of asset allocation is to diversify risk, rather than pursue high returns. We want to make more wealth steady appreciation, so in this case, financial insurance is also a good choice.
Financial insurance also has a special role. The insurance policy that protects amount to be in 10 MILLION above, early already is nothing new. These entrepreneurs, who pay hundreds of thousands of dollars a year in cash for insurance, are not stupid, they are smarter than most. So what is their motivation to buy financial insurance? The answer is: with the help of insurance to achieve wealth inheritance, the wealth will finally be transferred to the designated beneficiary, in addition to realizing wealth preservation and appreciation, under certain conditions, but also can solve the problems of debt and taxes.
In fact, there are many advantages of financial insurance, but the reason why financial insurance is not popular is that such products are too complex and suitable for very few people. Without understanding the nature of financial insurance and solving problems, blindly buying financial insurance will lead to large losses in subsequent surrender. So when it is suggested to buy financial management insurance, we must analyze and compare more, do not get off to a good start because insurance companies or salesmen sell enthusiastically, protect in a hurry.
