Is financial insurance worth doing? What are the advantages and disadvantages? Who is the applicable group?

In recent years, with the downward adjustment of bank deposit interest rate and the rotation of market advantages such as securities and insurance, our financial management strategy should also be adjusted. Many people will ask, is financial insurance worth doing? So let me introduce it in detail.

I think financial insurance is still worth doing. For people with sufficient funds, they can avoid debts and taxes and inherit assets by investing in financial insurance. For the average family, investment and financial insurance forces us to save money and make retirement plans in advance; But for some middle-class families, investment in financial insurance is not worth it; Because one of their assets is not big enough to need tax avoidance, the second insurance has a weak financial management function.

The most important advantage of financial insurance is that it can ensure the safety of funds, let us form the good habit of compulsory savings and plan our future path. But all the above advantages may become disadvantages, because financial insurance is only suitable for certain types of people; Then, other types of people will feel that there are many shortcomings when they look at financial insurance. One of the most important shortcomings: it is easier to be misled by salespeople, ignoring the protection function of insurance and simply pursuing high returns. Therefore, the focus of financial management insurance financing is to reduce premium expenditure and bear the risks brought by investment, rather than making big money as widely publicized now. If it does not change, financial insurance will never show its advantages.

I feel that financial insurance is suitable for a wide range of people, and the most important thing is to have spare money.

Why do you have spare money? Because in the short term, financial insurance does have a low rate of return. Take 5+5 insurance as an example. This kind of insurance is often used as a gimmick to force savings for five years. After ten years, the yield is actually around 1%. I feel that it is impossible to make a profit in the short term.

So if you have spare money, you might as well invest it.