Annuity insurance is a kind of financial insurance. Different from other wealth management products, its income is very fixed. As long as you pay the required premium on time, you can get a refund when you reach a certain age. Much like pensions, they all pay the prescribed premiums and can receive pensions at the prescribed age (after retirement). Annuity insurance means that we pay a sum of money first and return it to us every year after the agreed time limit. So it has another name, called pension annuity insurance, which makes financial management safer.
Another advantage of buying annuity insurance is that it is simple to operate, unlike other wealth management products that need to look at the market, such as stocks and funds. After purchasing annuity insurance, you only need to pay the annual fee regularly, and you don't need to look at the market. Therefore, the operation is simpler, and even if you don't know how to manage money, you can get benefits.
Pensions can be supplemented, although many people have participated in social security now, and they can receive pensions after retirement to protect their basic needs. However, relying solely on social security for the elderly may not be enough to have a high-quality old-age life. If you have a good financial ability when you are young, you can configure annuity insurance in advance and use it to supplement your pension after retirement.
As an educational fund for children. Nowadays, raising a child requires not only a lot of living expenses, but also education. If you want your children to receive a high-quality education, or if you have an idea to let your children study abroad, you can configure annuity insurance in advance to prepare for education funds. Annuity insurance is a long-term financial management tool, and surrendering in the middle will cause economic losses. Therefore, it has the function of compulsory savings, making plans for future education or pension.
As a wealth inheritance. For high net worth people, reasonable tax avoidance can be achieved by insuring high insurance. Annuity insurance is a kind of life insurance policy, which is guaranteed by "insurance protection fund". Even if the insurance company goes bankrupt, it is transferred to other insurance companies according to law, and its effectiveness is still valid and will not be damaged at all. We should know that if we want to leave assets to the next generation, if it is through stocks or real estate, not only the process is complicated, but also the inheritance tax is collected, so annuity insurance will be much simpler.