1. Provide necessary protection: insurance can provide protection for common risk factors such as accidents, health and death, reduce risk losses and effectively resist risks;

2. Risk planning: individuals or families can use insurance tools to plan their lives and transfer possible risks in advance;

3. Rational allocation of funds: insurance is a tool for allocating funds, which has certain investment and can inherit wealth by designating beneficiaries;

4. Leverage: Insurance can exchange a relatively small premium for a higher insured amount. With leverage, the insured can get better protection.