What is insurance? Insurance means that the policy holder pays insurance premiums to the insurer in accordance with the contract. The insurer shall bear the liability for compensation for property losses caused by the occurrence of possible accidents stipulated in the contract, or the death or injury of the insured.

Commercial insurance activities that bear the responsibility of paying insurance benefits when the insured is disabled, ill or reaches the age, term and other conditions stipulated in the contract.

The significance of insurance 1. View the significance of insurance from a micro perspective: Insurance helps individuals or institutions reduce economic harm by compensating the economic losses of the insured, enhances their risk management awareness, and ensures timely recovery and transfer of risks when they are damaged. At the same time,

It is also conducive to promoting the balance of personal or family consumption and helping enterprises to strengthen economic accounting.

Strengthening people's understanding of the meaning and function of insurance not only brings good development to individual development, but also has an impact on the development of the entire society that cannot be ignored.

2. Looking at the significance of insurance from a macro perspective: Insurance plays a huge role in ensuring social stability and promoting economic development and foreign trade.

It can not only ensure the normal progress of social reproduction and actively promote the circulation and consumption of commodities, but also help balance fiscal and credit income, increase foreign exchange income, and enhance the country's payment ability.

3. Economic compensation function.

Economic compensation is the foundation of insurance and best embodies the meaning and function of insurance. It is specifically reflected in two aspects: property insurance compensation and personal insurance benefits.

After a disaster occurs, the insurance company's timely compensation function is of great significance for restoring normal life and production.

4. The function of financial coordination.

The idle part of the formed insurance funds will be reinvested into the social reproduction process. In order to stabilize the insurance operation, the insurance company must ensure the preservation and appreciation of the insurance funds. This requires the insurance company to operate the funds, thereby ensuring the funds.

The possibility of financing and enhancing the risk awareness in financial financing are also one of the manifestations of the integration of the meaning and function of insurance.

5. The function of social management.

The purpose of regulating and controlling the entire society and all links through the social management function of insurance is to properly perform the functions of each system, department, and link, thereby achieving harmony and stability in social relations.

6. The transfer of risk does not mean that the disaster actually leaves the policy holder, but that the insurance company uses the financial resources of everyone to compensate the policy holder for the economic losses suffered by the disaster. This actually means that the loss is evenly distributed to the policy holders with the same risk.

7. Allocating losses is the premise and means of implementing compensation, and implementing compensation is the purpose of allocating losses.

In addition, some life insurance products not only have insurance functions, but also have certain investment value. That is to say, if no insured accident occurs during the insurance period, when the benefit period is reached, the insurance money you receive will not only exceed what you paid in the past.

Insurance premiums, but also other benefits other than principal.

Therefore, insurance is not only a kind of protection, but also has investment income.

What are the benefits of END insurance? 1. Don’t put all your eggs in one basket. Many people are not interested in insurance and think that the income from insurance is too low. They would rather invest their funds in stocks, bonds and other projects with relatively higher risks.

In fact, anyone who really understands investment knows: Don’t put all your eggs in the same basket.

They often divide their funds into four equal parts and invest equally in stocks, bonds, real estate and insurance.

When the first three items achieve high returns, insurance helps them save taxes; when the first three items fail, insurance can promptly protect their financial resources or provide them with funds for a comeback.

This reflects that insurance is a special kind of investment: "You should save money at ordinary times. If something happens, you will not be short of money. In case of emergency, you can receive life-saving money!" 2 Purchasing insurance can be reasonably tax-free and tax-avoiding. Insurance compensation is to compensate individuals for accidental and unfortunate losses.

It is considered personal income and therefore not taxable.

According to the provisions of the Tax Law, compensation received by individuals can be used in calculating taxable income.

In addition, if the insured dies during the validity period of the insurance, the life insurance company will pay the death insurance benefit as stipulated in the contract. If there is a beneficiary designated on the insurance policy, the life insurance company will pay the insurance benefit to the beneficiary.

The payment of this kind of insurance money is not treated as an inheritance. It has the following benefits: ① It can be exempted from inheritance tax and income tax, which is conducive to property transfer and tax saving; ② It does not need to be used to pay off debts, and no unit or individual has the right to claim this insurance

The funds can be preserved and frozen; ③ inheritance disputes can be avoided; ④ the people you love most can obtain the property legally.

3. Is it reliable to raise children to protect against old age? Since my country implemented the one-child policy, the family structure has become a "4:2:1" type, that is, a couple has to raise four elderly people and one child. In addition to themselves, each person has to pay 2.5 People’s living expenses are obviously a burden that they cannot afford, so “raising children to protect them in old age” may be more than enough! The world is not as good as yourself. If you want to live a healthy life in old age, you can only prepare for a rainy day. , Make insurance planning early, which is the general trend of social progress.

Life insurance companies can help us enjoy our old age comfortably, maintain our personal dignity, and truly provide for ourselves and have someone to rely on when we grow old.

4. Insurance is the reflection of identity and worth. Insurance is the best reflection of identity, credit and worth. The insurance amount on the policy can prove our own value.