The higher the income, the higher the risk; You should choose according to your ability to take risks.
In my personal opinion, there is an explanation for family financial management (for reference)
Insurance financing has many benefits.
There are many ways for families to invest in financial management, such as savings, insurance, stocks, bonds, futures, real estate, gold, antiques, stamps and so on. But the first task of financial management is to find ways to protect yourself and your family in case your income suddenly decreases.
To this end, you must first buy suitable life insurance and disability insurance for yourself and your family. Otherwise, even the best financial planning will fall short. It may even put you and your family in a dilemma of living on welfare. The proportion of insurance investment in family investment activities may not be the largest, but it is the most basic and necessary. The advantages of insurance financial management are mainly reflected in the following points.
1. Protector of personal financial security
Why is your life comfortable and happy? The root cause is that your income is enough to cover all expenses. Once your income suddenly stops, your family's living standard will drop rapidly, even to the point of poverty. The simplest, quickest and cheapest way to ensure family economic security is to buy life insurance.
2. Rich return on investment and security
Ordinary investment is the business of investing 100 yuan to earn 1 yuan, and insurance is investing 1 yuan to earn 100 yuan. Ordinary investment follows the law of "high returns and high risks", while life insurance investment is very safe. The state's strict supervision of insurance companies and strict monitoring of the use of insurance funds have reduced the risk of investment to a very low level. (The Insurance Law stipulates that a life insurance company may not be dissolved. When an insurance company goes bankrupt due to poor management, its policy must be transferred to other insurance companies or taken over by financial institutions designated by the state. )
3. Tax saving and property preservation
Life insurance is exempt from income tax and inheritance tax. When making an estate plan, it is almost impossible to preserve career and property without the participation of life insurance.
4. The insurance policy is not frozen, and it is not subject to the debtor's claim.
When an enterprise goes bankrupt, stocks, bonds, deposits, etc. Will be frozen, but only life insurance policies will not be frozen. In addition, the creditor has no right to ask the beneficiary to repay the debt with insurance money. This is also the place where life insurance investment is very different from other investments.
5. Reflect your values and show your economic strength.
How much insurance do you buy? What is your value? The higher your value, the stronger your economic strength. A boss who bought a high insurance policy said, "When you do business with others, tell him how much life insurance you have bought, which shows your financial strength and is very convincing."
Improve credit
When a bank lends money to an enterprise, it requires the enterprise to handle property insurance. Similarly, the credit of enterprises that have purchased life insurance will be greatly improved.
7. Establish an emergency reserve.
The premium of life insurance, with cash value, is ostensibly given to the insurance company, but in essence it is "deposited" in the insurance company, and you can use it at any time. This fund, every little makes a mickle, can be used to tide you over when you are in financial difficulties.
8. Buy time with money
Success = capital × ability × time. With a certain amount of capital and ability, plus enough time, career success is just around the corner. But with capital and ability, no one knows how much time they have. What shall we do? Buy life insurance. Even if you don't have time, you can be guaranteed to succeed financially.
9. Guarantee the value of life
Value of life = your annual income × working hours. A 30-year-old man earns money until he is 60 years old, and he has life value in these 30 years. However, after he retired at the age of 60, he lost his working hours, did not create value for society, and lost his life value. He will buy the value of life before retirement and the income after retirement. Because if there is no accident, the insurance company will give back the principal and interest to the customer, which can be used to supplement the pension. The above only summarizes the benefits of life insurance from the financial and financial perspectives. In fact, there are many benefits of life insurance, such as mortgage loans, things that are easy to realize and so on.
In a word, life insurance is an urgent need for cash, which has three major tasks: income protection, property protection and life value protection. When needed, its value will automatically rise to the highest point.