Is it better to buy insurance products or funds?
1 insurance products
Advantages:
1, stable income: wealth management insurance can help the insured to lock in the income in the next few decades in advance, so that the insured can obtain sustained and stable income. For example, annuity insurance will inform the insured in advance how much annuity they can receive in the agreed year, so that the insured can know in advance what the total income is and what the rate of return is.
2. It has the function of risk protection: For example, the pension can help the insured to solve the risk of insufficient income after retirement, and whole life insurance can solve the risk of poor wealth inheritance.
Disadvantages:
1, payment is mandatory: once the financial insurance is purchased, the insured must pay in the agreed way. If the payment continues for 5 years, 10 years and so on.
2. General liquidity: Most wealth management insurance in the market has poor liquidity and it is difficult to withdraw cash flexibly. Only whole life insurance, which increased the amount, was slightly better. Therefore, to buy financial insurance, we must use idle funds that have not been used for a long time.
2 fund products
Advantages:
1. There are many choices: according to different investment targets, fund products are divided into money funds, bond funds, stock funds and hybrid funds. Different products show different asset fluctuations, which may be small or large. Using fund products to manage money, users have the opportunity to get higher income than financial insurance.
2. Strong liquidity: For example, some money funds in the market can be withdrawn at any time, and short-term funds, medium-and long-term funds and long-term funds are all suitable for purchase. And the purchase threshold is not high, just have spare money.
Disadvantages:
1, high risk: different types of fund products have different risks. Usually, money funds have the lowest risk and stock funds have the highest risk.
2. Non-guaranteed income: the income of fund products is unstable, and sometimes it will face losses. Like financial insurance, future income will not be written in black and white in the contract.
To sum up, financial insurance and fund products have their own advantages and disadvantages and cannot be generalized. Investors can make choices according to their actual needs when making decisions.