How does the insurance industry deal with the impact of inflation, and can insurance hedge inflation

The impact of inflation insurance is not small, so is there a way to resist inflation, in fact, there is still a way, Daddy does not sell Guan Yuanzi, let's take a look directly.

1.Extension of the payment period

In general, the life insurance and critical illness insurance on the market can choose to pay the payment period of 5 10 20 30 in a single payment, and we may wish to extend the payment period, because if the payment period is extended, the annual amortized premium will be less, and the relative policyholder will pay less for Hu Xiao's premium.

Although the total premium will increase with the extension of the payment period, our salary is also **, and the annual premium has also decreased, which can actually alleviate the impact of inflation on insurance to a certain extent.

2.Do high sum insured

As mentioned earlier, the actual value of the insurance will become lower and lower over time, so in order to resist inflation, we can try to make the insurance amount as high as possible.

This is like the fact that 500,000 in a few decades is not as valuable as 500,000 now, but it is certainly higher than the 200,000 at that time.

3.Buy a top-up plan

The sum insured of the incremental insurance will increase according to the number of years the policy is held, and the specific increase rate will be specified in the insurance contract.

Since the sum assured of the increase plan will grow slowly, it will not be affected by the same large inflation as the fixed sum assured plan.

How to avoid inflation is a problem that many people are concerned about, and choosing the type of insurance that can invest in dividends and yield changes can curb inflation to a certain extent. Rounds of price increases have made more and more consumers worry that if they buy insurance now, they will definitely be inflationary in the future, and the money at this time is worth more than the money in the future, so isn't this a loss? According to expert analysis, consumers should choose the type of insurance products, and it is best to choose the type of insurance that can invest in dividends and changes in yields, so that it has a certain inhibitory effect on inflation What should I do?

The following is an analysis of how to avoid inflation by buying insurance according to the size of risk appetite. 1. If the income is not high, and you want to avoid risks as much as possible, you can obtain a certain guaranteed income to compensate for inflation, and exchange the minimum expenditure for the maximum sum insured, you can choose to allocate as many regular non-return life insurance products as possible in the protection plan, or principal-protected universal insurance. Universal insurance is the only insurance approved by the regulatory authorities to set up guaranteed returns, which does not require the maximum amount of income, and can bring considerable income to the policyholder under specific market conditions.

Second, if the income belongs to the middle class, there is not much time to take care of their finances, with the ability to accept a small range of financial ups and downs but relatively conservative investors can choose dividend insurance, thinking that this kind of insurance by the customer to participate in the dividend distribution of the insurance company, the profit is slightly higher than the bank interest rate, but not like universal insurance. Generally, long-term insurance has a dividend function, in fact, the essential role of dividends is not the common understanding of dividend investment, in fact, it is an inflation regulator. 3. If the income is high, the investor is willing to accept the higher risk, and the investor with considerable financial knowledge can choose investment-linked insurance with no fixed income and all depends on the investment income status, and the risk and return of investment-linked insurance are relatively high.

It should be reminded that when applying for these three types of insurance, you should try to be calm, if you want to make money through insurance, it is basically impossible. As the name suggests, insurance is to protect the dangers that may occur around us at any time, and it is a kind of protection against uncertain dangers that will occur in the future, so it is necessary to give ourselves a protection if we have the ability. In addition, children's education** is the most likely financial product to increase investment in the future.

1. In fact, neither participating insurance nor critical illness insurance can resist inflation. The first thing we have to understand is that insurance is its surname Bao. It's about protection, not financial management.

2. But when we buy insurance. Insurance companies have taken inflation into account, so they have been using equilibrium rates, because the premiums paid are the same every year, but the value of the premiums paid 20 years ago is not the same as the current premiums.

3. We can increase the sum insured by means of fiber or insurance portfolio loss. For example, medical insurance, critical illness insurance, and life insurance are all bought, so as to deal with various risks in the future more comprehensively and effectively hedge against inflation.

4. At the same time, it is also possible to use lifelong heavy insurance + consumer heavy insurance. Or "dynamic insurance", the idea of re-insuring within the insurance period, and repeatedly configuring the insurance amount to make it higher. If you don't have a lot of budget, don't buy any dividends, returns and other insurance, the core of buying insurance is to protect people, not to get higher interest through insurance companies.

To be precise, insurance is not fully protective against inflation.

As mentioned above, what can outperform inflation, and what is practical, can only be that the appreciation of investment exceeds the inflation rate, and insurance, as a non-debt asset, cannot outperform inflation.

According to the inflation rate, 50w will be discounted in 30 years and will probably be less than today's 20w, so in this case, what is the use of the current 50w insurance amount in 30 years?

This problem is not complicated, long-term insurance uses a balanced rate, which takes into account inflation, that is, the premiums you pay every year are the same, not like prices from year to year**. Otherwise, the money you pay in the 20th year will not be the same as the first time you paid 20 years ago.

Take 10,000 steps back, even if the insurance company collects the money, it will not be inflationary, and "money is not worth it". Therefore, this money is actually a place, and it will depreciate if you put it in the bank or at home.

What's more, the core of insurance is the protection of people, if something happens during the insurance period, then you can apply for a claim. If you are sure that nothing will happen in the future, then you don't need to buy insurance at all.

There are many types of insurance, including accident insurance, medical insurance, critical illness insurance, life insurance, annuity insurance, etc., most friends don't know what the reason is to buy them? Then you can open this link, where Daddy answers this question in detail. Top 10 Reasons Why You Should Buy Insurance?

How is insurance configured? 》

Both participating and universal insurance can play a role in protecting against inflation.

Because the price of goods is high, the return required by the investment will become higher, and the corresponding dividends of the insurance or the value of the insurance account will increase, offsetting the decrease in purchasing power caused by inflation.

Directly and in layman's terms, it is to be able to make a profit, and having money to earn is the most important thing, and then it is to think more about customers when distributing, so as to be able to resist inflation.