The advantages and disadvantages of insurance and banks

Bank advantages: 1. Flexible deposits and withdrawals 2. Relatively stable interest rates (theoretically, it must be a fixed deposit of 5 years and then transferred, Otherwise, it will not be comparable to CPI) 3. Relatively safe (compared to funds, stocks, and futures), but it is easy to be sealed in the event of an emergency.

Disadvantages: 1. It is difficult because it is too flexible Achieve the ultimate financial management goals, especially medium and long-term financial management goals (such as children’s education funds, pensions, etc. may be misappropriated under special circumstances - business, car purchase, house purchase, friends’ urgent needs, etc.)

2. Regular Once the deposit is withdrawn before maturity, the interest will be based on the current interest rate. In the current situation where the CPI is so high, the bank's money is chronically shrinking - the purchasing power is declining.

3. In some special circumstances, the money deposited in the bank may be sealed (when being sued, investigated by the public prosecutor, during financial disputes, even divorce, or even hacked (such cases) (Available everywhere)

Disadvantages of insurance 1. It is convenient to save money, but inconvenient to withdraw money. There may even be huge losses when surrendering the policy

2. I can’t understand the insurance terms and worry about it Sometimes the bamboo basket is empty (if you buy insurance when you are sick, especially if you buy major medical insurance), the insurance company will even terminate the agreement without refunding the premium.

3. The time limit for receiving the insurance is relatively long, usually 20 or even 40 years later.

Advantages 1. Dedicated mandatory savings to complete medium- and long-term financial planning (education funds, pensions, repayment of serious illness), taking into account risk management while managing finances, and transfer risks to insurance companies. Avoid changes in the quality of life of your family due to personal accidental disease risks

2. Participating insurance can resist inflation and interest rate fluctuations to a certain extent (but this must be based on a certain principal +). On the basis of time + interest rate + duration), at the same time, the function of value preservation and appreciation is realized through the compound interest calculation of insurance

3. Ensuring the safety of funds (truly realizing the separation of corporate assets and household assets) is the 21st century The key point that every entrepreneur should pay attention to is what we usually call the firewall function of insurance.

4. To truly protect personal assets, no unit or individual can interfere with the benefits. People receive insurance claims. This is unfrozen funds

5. Convenient and timely cash flow - providing low-interest (or even interest-free) loans to wealthy people as long as they deposit money in the insurance in advance. If you pay enough premiums, we will give you a cash flow loan when you need it urgently.

6. Realize the tax avoidance function, truly realize the inheritance of wealth, and make it possible for three generations to achieve wealth.

7. Once the most important protection function (birth, old age, illness, death, disability) occurs, you can get a large amount of compensation. Although no one wants to take it, it is better to have it than nothing. Be strong!

I hope it will be helpful for you to buy insurance or make a deposit in the bank in the future!

Extended reading: How to buy insurance, which one is better, and step-by-step instructions to avoid these "pitfalls" of insurance