1, advantages:
① Compulsory savings and financial planning: China people love to save money, but they lack certain awareness of financial laws and regulations, and their financial knowledge is relatively weak. Insurance can give consumers some help in financial planning. For example, annuity insurance is a relatively stable financial choice.
2 Diversify risks: For high-net-worth people, the core of asset allocation is to diversify risks, not to pursue high returns. In this case, financial insurance is a good choice and can be used to allocate family assets.
(3) As a tool of wealth inheritance, financial insurance can realize the inheritance of wealth. Transferring wealth to designated beneficiaries can not only preserve and increase the value of wealth, but also solve debt and tax problems under certain conditions.
2. Disadvantages:
① Low income: Financial insurance generally has a fixed interest rate. If the inflation rate is relatively high, there is a risk of depreciation in the long run, and it is difficult to resist the impact of inflation.
② The investment cycle is too long: At present, the investment cycle of wealth management insurance in the market is relatively long, usually decades or even longer, and it is more meaningful to invest heavily in the early stage.
③ General guarantee: Although financial insurance has both guarantee function and financial management function, its guarantee function is very weak and almost negligible. When the risk really comes, financial insurance can't make up for the loss caused by the risk.
Therefore, it is recommended that you give priority to purchasing pure protection products, such as critical illness insurance, medical insurance, accident insurance and life insurance.
If you haven't configured guaranteed insurance, I suggest you take a look at this insurance strategy first: how to configure the four major types of insurance? Remember these points and easily buy the most practical and cost-effective insurance!
Pay attention to insurance. 1 Free consultation 1. We will choose products with higher cost performance for you with a professional, objective and neutral attitude, so that you can easily buy insurance!