Financial insurance, also called investment insurance, is a very fashionable term nowadays. The so-called financial insurance is actually an insurance product that takes into account the dual functions of investment and protection. It is currently mainly divided into three categories: dividend insurance, universal insurance, and investment-linked insurance. With the advent of the era of universal financial management, more and more people are buying financial insurance. Have you cleverly avoided the misunderstandings?

What are the misunderstandings about purchasing financial insurance?

In order to allow investors to choose financial products that are more suitable for them, I have compiled some misunderstandings about purchasing financial insurance. I hope they can help everyone Bring reference value.

Myth 1: Participating insurance is equal to bank deposits

Participating insurance is the most popular type of financial insurance. It means that in addition to the agreed insurance coverage, the policy holder can also enjoy company dividends , so many people think that participating insurance is equivalent to bank deposits, with higher interest rates!

In fact, this is not the case. The dividends that can be distributed by participating insurance are uncertain and there is no fixed ratio. The level of dividends mainly depends on the operating results of the insurance company. Customers may get higher returns than bank deposits, or they may be lower. Dividend insurance cannot simply be equated with bank deposits. Which insurance company is the best? I just compiled the relevant content. I hope it will be helpful to you: the latest list! Ranking of the top ten insurance companies in the country

Myth 2: All premiums for universal insurance are used for investment

The so-called universal insurance emerged after traditional life insurance, participating insurance and investment-linked insurance A more flexible insurance product. The reason why universal life insurance is "universal" is that after purchasing this type of product, policyholders can adjust the insurance amount, premium paid and payment period according to their protection needs and economic conditions at different stages of life, so that the ratio of protection to financial management can be adjusted. Reach the best in every period. What are some good life insurance recommendations? I just compiled the relevant content. I hope it will be helpful to you: An inventory of the top ten insurance companies’ best-selling life insurance in 2020!

The settlement interest rate of universal insurance products has a guaranteed interest rate, and the portion exceeding the guaranteed interest rate is uncertain. So, do all the premiums paid by consumers go into the investment account? The answer is no. From the premiums paid by customers, after deducting risk premiums and operating and management fees, the remaining portion will enter the investment account. Therefore, the risk of universal insurance is higher than that of participating insurance, but lower than that of investment-linked insurance.

Myth 3: Investment-linked insurance returns are guaranteed

Investment-linked insurance is an insurance product that combines insurance and financial management. Compared with universal insurance, investment-linked insurance The proportion of funds invested in the securities market can be as high as 100%. Therefore, the prices of many investment-linked accounts have a high correlation with the securities market. Part of the premium paid by investors has the protection function of insurance, and the other part is linked to the investment income of the insurance company and is operated by investment experts. Investors enjoy all investment income and bear corresponding investment risks.

It should be noted that the investment returns of investment-linked insurance products are uncertain, and the investment risks are fully borne by the policyholders. Investment-linked insurance products generally have multiple accounts. Due to different investment channels, the risks and returns of each account are different. Consumers should choose investment accounts based on their own risk tolerance.

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