There are many ways to manage money, including stocks, funds, trusts, gold and so on.

however, for some people who have poor risk tolerance and pursue stable income, the financial management methods such as stocks and funds are risky, and the fluctuation of income is easy to make people's mentality collapse.

Therefore, insurance financing has increasingly become the preferred financial management method for people pursuing stable income.

so, is it reliable to buy financial insurance products? What are the benefits of insurance financing? Is there anything to pay attention to?

These questions must be in the minds of many people who are going to manage their finances through insurance, so the following senior sister will give you detailed answers.

Because insurance also involves a lot of professional contents, it is suggested that people who are new to insurance should learn some basic insurance knowledge first, so that we can better understand: before buying insurance, we must first understand these key knowledge points!

This article focuses on:

Are financial insurance products reliable?

what are the benefits of insurance financing?

what should I pay attention to when buying financial insurance?

1. Are financial insurance products reliable?

Financial insurance products are reliable and safe.

First of all, insurance companies are reliable, and domestic insurance companies will basically not go bankrupt. To set up an insurance company, many conditions need to be met, such as the minimum registered capital of RMB 2 million, and the registered capital must be paid-in monetary capital. After the establishment of insurance companies, they should always accept the strict supervision of China Banking and Insurance Regulatory Commission.

even if an insurance company has any financial problems in its operation, it will be taken over by other insurance companies or directly by the China Banking Regulatory Commission, thus protecting the interests of customers. Therefore, it is safe to buy financial insurance and hand over the money to the insurance company.

Secondly, wealth management insurance itself is reliable. Like other insurances, wealth management insurance has to be strictly audited by China Banking and Insurance Regulatory Commission before it can be sold in the market.

Also, buying insurance requires both parties to sign a contract, and so does financial insurance. Insurance contracts are bound by law. If insurance companies dare to breach the contract, we can take proper rights protection measures to protect our rights and interests.

After reading this article, you can also have a deeper understanding of the reliability of insurance and insurance companies: Is it reliable to buy insurance? Will the insurance company be a rogue and refuse to pay compensation?

Second, what are the benefits of insurance financing?

There are many advantages in managing money by buying financial insurance products:

1. Safeguard

Insurance has safeguards, such as our common critical illness insurance, medical insurance, accident insurance and life insurance, which can transfer the economic risks caused by the insured's illness, accident or death; And financial insurance also has a protection function, which generally provides death protection. Another financial function can also be said to protect personal property.

Most financial insurance can also provide financial assistance to individuals and families. Generally, financial insurance supports policy loans. If we are in urgent need of funds, we can realize the realization of funds through policy loans, so as to obtain a share of funds for emergency.

2. Profitability

Many wealth management insurances in the market can preserve capital and increase value, and their benefits will be written into the contract. For example, whole life insurance, which is very popular among people, also has the function of compulsory savings, and its insurance coverage will increase.

Another example is annuity insurance. After insurance, the insured pays the premium to the insurance company in one lump sum or on schedule, and the insurance company will pay the annuity annually or monthly according to the agreed time, which can be used for pension, education, marriage leave and so on.

This article also introduces other financial insurance types, so you can learn more about them and see which one you are suitable for: dividend insurance, universal insurance and increased whole life insurance. What is the difference between these financial insurance types? Which one is the most cost-effective?

Third, what should I pay attention to when buying financial insurance?

1. Weak protection function

The protection function of financial insurance is relatively weak, generally only death protection, which may not be able to transfer economic risks caused by diseases, accidents and other factors.

moreover, the income of some wealth management insurance is uncertain. For example, the dividend income of dividend insurance cannot be guaranteed. In addition, for universal insurance, only the minimum guaranteed interest rate is determined, and the actual income beyond the guaranteed interest rate will fluctuate.

So, if you have enough insurance such as critical illness insurance, medical insurance, accident insurance, etc., and you still have a lot of spare money on hand, then consider buying suitable financial insurance products.

why should I buy guaranteed insurance? The reasons are explained in this article. I suggest everyone take a look: Do you want to buy insurance? If you don't get out of danger, won't the money be wasted?

It should also be noted that financial insurance should be properly allocated according to one's own financial situation and living conditions, so as to achieve financial goals more effectively. Otherwise, blindly taking out financial insurance and directly investing a lot of money may have an impact on life.

2. Earnings should be specifically analyzed

Different wealth management insurance has different income levels. Most wealth management insurance can at least protect the capital and have higher security. Buying insurance plays a more important role in compulsory savings.

however, some financial insurance, such as investment-linked insurance, is risky and may incur losses, and the risk loss is borne by the insured.

However, most kinds of wealth management insurance products can still protect their capital, and some products will realize asset appreciation on the basis of capital preservation, so we can compare the income of different products and choose the products that can achieve our expected income.

before applying for insurance, we should calculate IRR internal rate of return according to the data such as policy year, payment and cash value. Generally, the higher the IRR value, the better the income.

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