1. Safety: It is safer to manage cash with insurance than other financial products. Because of this, insurance can be used as a long-term financial management tool. First of all, keeping it safe will be missed by people (including relatives or children) at home or in the bank.
2. Supportability: You can use the "benchmarking effect" to understand the security characteristics of insurance. In popular terms, it means "doing great things with very little money". Term life insurance, accidental injury, periodic serious illness, hospitalization and subsidies are all well guaranteed. For this reason, insurance has become a benchmark to incite a harmonious society, and insurance agents are messengers to promote social harmony.
3. certainty: the so-called certainty means that the insurance contract can stipulate the benefits in the next few years or even for life. Other financial instruments can generally only determine short-term returns, but cannot lock in the returns after decades, such as bank deposits or government bonds, and stipulate the principal and interest within five years at most. Stocks and funds only reflect historical transactions and cannot predict the future. Therefore, it is not advisable to solve the long-term capital problem only with tools such as deposits, stocks and funds.
Extended data:
1. Insurance (insurance or abbreviated as insurance), which means safety and reliability; Later, it was extended to a guarantee mechanism, a tool for planning life finance, a basic means of risk management under the condition of market economy, and an important pillar of financial system and social security system.
2. Insurance refers to the commercial insurance behavior that the applicant pays the insurance premium to the insurer according to the contract, and the insurer is liable for the property losses caused by the possible accidents agreed in the contract, or the insured is liable for paying the insurance premium when he dies, is disabled, falls ill or reaches the age and time limit agreed in the contract.
3. From an economic point of view, insurance is a financial arrangement to share accident losses; From the legal point of view, insurance is a contractual act, a contractual arrangement in which one party agrees to compensate the other party for losses; From a social point of view, insurance is an important part of the social and economic security system and a "subtle stabilizer" for social production and social life; From the perspective of risk management, insurance is a method of risk management.
References:
Insurance (Contract Economic Relationship)-Baidu Encyclopedia