Is wealth management insurance worth doing? What are the pros and cons? Who is it suitable for?

In recent years, with the reduction of bank deposit interest rates, there has been a rotation of advantages in the market such as ** and insurance, so our financial strategy should be adjusted, and many people will ask whether financial insurance is worth doing? So let me be specific.

I think wealth management insurance is still worth doing, for people with sufficient funds, investment wealth management insurance can be used to avoid debts and taxes, and asset inheritance. For ordinary families, investment and wealth management insurance forces us to save funds and make retirement planning in advance; But for some middle-class families, investing in wealth management insurance is not worth it; Because one of their assets is not large enough to avoid taxes, the financial management function of the second insurance is relatively weak.

The most important advantage of wealth management insurance is that it can ensure the safety of funds, let us develop a good habit of forced savings, and plan the future road. However, all of the above advantages can become disadvantages, because financial insurance is only suitable for certain types of people; Then, when other types of people look at financial insurance, they will feel that there are many shortcomings. One of the most important drawbacks:

That is, it is easier to be misled by salespeople, ignore the protection function of insurance, and simply pursue high returns. Therefore, the focus of financial management insurance is to reduce the premium payment and bear the risks brought by investment, rather than making a lot of money as is commonly preached now. If it does not change, financial insurance will definitely not reflect the advantages.

I feel that the applicable group of people of wealth management insurance is still relatively wide, and the most important point is to have spare money.

Why do you say that you have spare money, because in the short term, the rate of return is really low, so take the 5+5 type insurance that is often used as a gimmick for compulsory savings, save for five years and put it for five years, and the yield is actually around 1% in ten years, and I feel that it is impossible to make a profit in a short period of time.

So if you have spare money on hand, you might as well take it out and invest it.

As the name suggests, wealth management insurance is insurance with financial management functions. Generally speaking, participating insurance, universal insurance, and investment-linked insurance are all financial in nature. Let's talk about these three types of insurance.

Policies have pricing assumptions, participating insurance is the insurance company's operation is better than the pricing assumption, after a certain surplus, the policy will be divided, the insurance regulatory commission stipulates that the insurance company will at least 70% of the distributable earnings to customers. The dividends of participating insurance are uncertain and not guaranteed, and the insurance company can score more points if it operates well, and the dividends may be zero if it is not operated well.

Universal insurance is both protection and investment as one of the insurance, the insurance company will set up a special investment account for universal insurance, this account generally has a guaranteed interest rate, the insurance regulatory Commission stipulates that not higher than 3%, compared with the dividend insurance universal insurance The advantage of universal insurance is that there is a guarantee, and the settlement interest rate is announced every month, and the customer account value can be compounded daily and settled monthly.

Investment-linked insurance is more inclined to wealth management and is not guaranteed, and the value of the customer's investment account will increase or lose in value with the ups and downs of the capital market.

At present, customers prefer universal insurance, because it has both financial management and protection, and at the same time the investment has a guaranteed base. However, compared with pure protection insurance, universal insurance has a stronger investment function, and when customers choose insurance, it should be protection insurance first, and wealth management insurance second. It is recommended to give preference to critical illness, accident, medical treatment, pension and other protection types, and consider financial management insurance if economic conditions permit.

He is a veteran driver in the insurance industry for more than ten years, focusing on financial management and insurance, and is an internationally certified CWMA wealth manager.

Hello! Compared with other investment methods, the most important features of insurance and wealth management are low risk, high security, and guaranteed principal, which can protect the principal from being affected by the investment environment and ensure the stable appreciation of wealth. Moreover, the yield of wealth management insurance is moderate, and the asset allocation ratio and investment plan are determined according to the length of the customer's investment period, which can ensure the basic investment income, and does not require the customer to operate by himself, with a certain amount of compulsory savings, which is worthy of consideration by the majority of consumers.

Regarding whether wealth management insurance is good or not, you can see what its advantages are, and everyone will be clear.

1.High security.

Ordinary investment follows the law of "high yield and high risk", while wealth management insurance investment is very safe. The state's strict supervision of insurance companies and strict monitoring of the use of insurance funds have reduced the risk of investment to a very low level. (The Insurance Act provides:.)

Wealth management insurance companies are not allowed to be dissolved, and when an insurance company goes bankrupt due to poor management, the policies it holds must be transferred to other insurance companies or taken over by a state-designated financial institution. ）

2.Tax savings and property preservation.

Wealth management insurance benefits are exempt from income tax and inheritance tax, and it is almost impossible to preserve all business and property without the participation of wealth management insurance when formulating an estate plan.

3.The policy is not frozen and not subject to debt collection by the debtor.

When a business goes bankrupt, **, bonds, deposits, etc. will be frozen, only life insurance policies will not be frozen. In addition, the creditor has no right to demand that the beneficiary repay the debt with the proceeds of insurance. This is also where wealth management insurance investment is very different from other investments.

4.Improve credit.

When banks lend to enterprises, they require enterprises to take out property insurance, and in the same way, for those who have purchased wealth management insurance, their credit and the credit of the enterprise will be greatly improved.

5.Establish an emergency reserve.

The insurance premium of wealth management insurance, with cash value, is handed over to the insurance company on the surface, in essence, it is "savings" in the insurance company, the policyholder can use it at any time, this fund, accumulated into a lot, when the policyholder encounters financial difficulties, you can use the funds to tide over the predicament.

After reading the above content, everyone should have an answer to the question of whether financial insurance is good or not. Wealth management insurance has the above advantages, and consumers can choose the financial insurance products that are suitable for them according to their actual situation.

Some people say that although the premium of consumer-based insurance is low and the payment is flexible, it is not returned, and it feels like the money is spent in vain; Return-type insurance, although the premium is high, can be recovered "with interest" at maturity. Therefore, it is more cost-effective to buy a return type.

What is the difference between consumer insurance and return insurance?

What's so bad about the "return" of return-type insurance?

Consumption type or return type, which one should we buy?

01Return-based insurance vs. consumer insurance.

The so-called return insurance, in layman's terms, means that if everything is fine and there is no compensation when the insurance contract expires and is terminated, the insurance company will return the premium paid before or the insurance amount specified in the contract to you.

Consumer-based insurance is the premium paid after the expiration is gone, similar to when you eat and consume, the money is spent and will not be returned. Just like car insurance, paying every year means spending every year. But don't you think the money was paid in vain because you didn't crash and didn't make a claim?

On the contrary, if you give people this kind of insurance, you feel that it is a loss if you do not recover the cost, well, is this considered "discrimination"?

Let's take a closer look at how much each of them costs:

Take critical illness insurance as an example. Lao Wang is 30 years old, assuming the same insurance amount of 100,000 yuan, the protection period is 30 years, and the payment period is 20 years.

If you buy a consumer type, pay 1,500 yuan per year, and pay a total of 30,000 yuan;

If you buy a return type, pay 3,200 yuan per year, pay a total of 60,004, and then return 100,000 yuan of insurance at the age of 70.

Looking at it this way, the return type is very suitable, although it pays an extra 1,700 yuan every year, but in the end it can get back 100,000 yuan, which is equivalent to making 30,006 yuan for nothing! Although the premium is a little more expensive, the money paid will definitely come back. In this way, it's quite a good deal.

However, you have missed one important point, inflation!

To put it another way, buying a returnable type is equivalent to buying the previous consumer-type critical illness insurance (with the same protection), plus saving 1,700 yuan per year for the insurance company to help you manage your finances. Since it is financial management, it is worth it by the rate of return

Use Excel to calculate IRR (it doesn't matter if it will be calculated, just know the general logic), the annualized rate of return corresponding to this investment is about the same, and it is not certain whether this income can outperform inflation! Besides, what can 100,000 yuan do in a few decades?

Besides, it is not difficult to save 1,700 yuan per year to achieve an annualized return of 5% on your own financial management.

If you don't believe it, you can get 50,000 yuan after 20 years: if you continue to invest at 5% of the rate of return to 70 years old, you can finally get 160,000 if you continue to invest at 5% until you are 70 years old.

In fact, it is still very good, he is basically a financial product, insurance is only incidental, so the interest rate is still relatively high, but it must be about three years to take out, there is a certain number of years, relatively speaking, if you are not in a hurry to use the money, it is still relatively okay.

Wealth management insurance is not risk-free. Depending on the type, the risk factor is different for each product.

Is it worth buying financial insurance from an insurance company? How is it different from other wealth management products?

Is wealth management insurance really a pit?

There are no other financial channels, this is okay.

The true meaning of insurance and financial management is long-term deposit and long-term income, with a little mandatory saving, and there is urgent cash when you need to save a little money every year. It is not cost-effective to buy insurance at once.

The income from buying insurance is not necessarily, you don't look at the income promised by the bank, it is all fooling! I think that my ability to learn the best ticket is not as strong as buying insurance, because you have less money now, and you can't lose much, but after you learn the experience, you can earn much more than the tuition you pay now. Personal opinion!

1. The insurance is not suitable or inappropriate.

2. Insurance is a way of financial management, just like bank deposits, we all know that it is not appropriate to deposit in the bank, but the bank still needs to save some money.

3. Eggs can't be put in one basket, everyone understands this truth.

Some wealth management insurance is indeed good, such as Taiping Life's Fushou Lianlian.

Dividends are uncertain, and there is no accurate data to provide in the short term!

Insurance and financial management pay attention to long-term returns, and the longer the time, the more benefits will be, and banks, **, etc. are far from reaching!

Personally, I think that insurance should not buy a wealth management type, because the main function of insurance is to protect, and if you want to manage your money, you can buy professional financial products.

In fact, if you don't usually know how to manage money, you can go down and buy a financial insurance, after all, financial insurance is relatively valuable, but it is difficult to increase value, because the interest rate of financial insurance is generally very low, and he is stable, maybe it has been put there for 20 or 30 years, and there will be no loss of money.

However, I personally think that buying insurance is mainly based on protection, because the original intention of insurance is to help people resist risks in the event of risks, so whether it is accident insurance or illness insurance, it is more worth buying than financial insurance.

So if you know some financial management methods, such as buying special financial products or, buying, etc., as long as you can manage your money normally, you don't need to consider buying financial insurance, but you must take into account the risk, after all, different financial products have different degrees of risk, for example, ** are high-risk products, you must grasp the risk, don't put all your money in one basket.

Before asking a formal question, let's first clarify the concept of "wealth management insurance". In my opinion, participating life insurance itself is not a wealth management insurance, based on the basic definition of it by the China Insurance Regulatory Commission (Article 2 of the Interim Measures for the Administration of Participating Insurance): The term "participating insurance" in these measures refers to a life insurance product in which the insurance company distributes its actual operating results to policyholders in a certain proportion compared to the surplus of the pricing assumption. Participating insurance is essentially a process in which the insurance company returns the excess profit (or the insurance premium overpaid by the customer) to the policyholder in the form of cash return or increased insurance amount, so as to realize the principle of insurance pricing fairness (and also strive for more customers under full market competition). Therefore, in general, participating insurance is not closely related to financial management. The wealth management insurance I refer to below is mainly universal insurance and investment-linked insurance.

Secondly, my so-called financial management does not simply focus on investment income (although this is worth paying attention to and has an important impact), but more on the effective use of premiums and the reasonable adjustment of the insured amount of the insured product, and thus brings "the minimum protection cost, in exchange for greater security", the basic proposition of insurance.

Based on the above two points, I think:

1. Wealth management insurance is worth buying.

2. The advantages of wealth management insurance: the transparency of the use of premiums is high, and the basic strategy of insurance companies in the use of premiums can be clearly understood, and then there is more information to judge the products of a certain company and a certain product that are more worthy of purchase. For example, most wealth management insurance policies will clearly state the proportion of deductions (the cost of insurance companies to manage the policy), the cost of protection (net premium), and the savings premium (account value), through which we can easily understand a company's investment strength, operating product strategy, and pricing assumptions.

The payment amount and frequency are flexible, and the payment frequency can be determined according to the actual account value, so as to avoid the suspension of the policy effect due to untimely payment, and facilitate the turnover of funds. The amount of insurance can be adjusted, according to its own actual situation, save part of the premium, improve the efficiency of the use of premiums.

3. Disadvantages of wealth management insurance: it is easier to be "fooled" and misled; Ignoring the protection function of insurance, and simply pursuing high returns (and the actual investment return of all insurance on the market is up to 5%-6%). Therefore, the focus of the "financial management" of wealth management insurance is how to invest in the operation of the insurance company, improve the efficiency of the use of high premiums, reasonably reduce the premium expenditure, and bear higher risk protection, rather than "making a lot of money through insurance" as is commonly preached now.

If this blind spot is not removed, financial insurance will definitely not be able to reflect the advantages.

4. What kind of people are suitable for? On the premise of fully understanding the connotation of wealth management insurance, because its payment is flexible and transparent, and the amount of insurance is adjustable, different groups of people can adjust it appropriately according to their actual conditions, and I think that wealth management insurance is suitable for a wide range of people.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"