Is insurance considered financial management, and is there a difference between financial management

Insurance is of course financial management, and is the basis of all financial management, if you have achieved 200,000 income through financial management, but an accident causes you to have to spend 300,000, fake you have 300,000 accident insurance, the insurance company will solve the problem for you, if not, your own financial management of 200,000 is not enough, but also to take the old capital or borrow, so insurance is the basis of financial management, must have. Moreover, most of the current insurance products are financial management, there is protection for something, and financial management is done without anything, killing two birds with one stone, why not? Don't, you must buy insurance that suits you, don't spend money in vain.

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First of all, people will face some unexpected risks in their lives, such as personal risks, property risks, liability risks, etc., and the management of risks also includes risk control, risk avoidance, risk diversification, risk retention, risk transfer, etc. The most important of these is risk transfer, the main form of which is insurance. For example, someone finally had an income of 100,000 yuan through hard financial management, but suddenly suffered a serious illness, and the 100,000 yuan was not enough, and he borrowed 20,000 yuan to save his life.

There is another person who also has 100,000 yuan, but he bought medical insurance, so the medical insurance paid 80% of the cost, and he only paid 10,000 yuan to save his life.

Therefore, insurance is a very important part of financial management.

Insurance protection is an important part of financial management to reduce expenditures, insurance dividends and pension and education and other annuity insurance, universal insurance, both insurance, through additional accidents, medical treatment, critical illness, etc., to reduce expenditures and regular savings, savings dividends organically combined, forming a new financial model insurance financial management.

Whether to focus on protection or income, the choice of insurance type is the most critical.

Insurance is a part of financial management, and insurance shopping guides are right.

1. Insurance products and bank wealth management products are two different concepts. The main basic function of an insurance product is the protection function, such as the death or disability of the insured during the insurance period, the insurance company also bears the insurance liability.

2. The business entities are different. Bank wealth management products are the business operated by banks, and insurance products are the business operated by insurance companies.

3. The role is different. The main role of bank wealth management products is to pursue capital security and certain returns, and compared with insurance products, there are differences between the two in terms of risk prevention, access methods and ownership. In terms of risk prevention, insurance products and bank wealth management products can prepare for future risks, but using bank savings to cope with future risks is a self-help behavior, while insurance can transfer risks to insurance companies, which is a mutual aid behavior.

4. In terms of access and withdrawal, the bank deposits and withdrawals are free, and the interest is calculated at the current interest rate for early withdrawal, and there is no loss of principal, while the insurance product has no concept of access and interest, and whether the insurance money can be obtained is uncertain, and the insurance money can only be obtained when the insurance expires or the insured accident occurs, and the insurance will bear certain losses if the insurance is surrendered early. Whether it is insurance products or bank wealth management products, they are all affected by the general economic and financial environment, and there are uncertain risk factors, so insurance products and bank wealth management products cannot be simply compared.

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

Wealth management and insurance are the right hand of your wealth, and they should each do their own thing, not be mixed. Financial management pursues income, and insurance seeks protection.

The reason why insurance cannot be justified is because insurance is a part of financial management, not equal to financial management. The financial management role of insurance is manifested in the following points:

1. Value preservation. The predetermined interest rate of insurance products approved and filed by the insurance regulatory department is slightly higher than the interest rate of savings deposits. Moreover, insurance companies implement equilibrium rates, and even in the case of inflation, the depreciation of the renminbi will not affect the payment of insurance premiums.

2. Income. The income of insurance and wealth management is reflected in two aspects: first, the direct income of dividend products.

Through scientific asset management, insurance companies use huge capital allocation, or real estate investment, or issue loans, or enter the capital market in the form of equity assets, obtain dividends that are difficult for ordinary investors to achieve, and directly return to policyholders. Second, through maturity benefits or survival benefits or liability compensation, the beneficiary of the policy can obtain insurance benefits that are much higher than the insurance premiums paid by the policyholder. In a sense, this form is the practice of rational economic man to achieve the expected benefits by using the smallest opportunity cost.

3. Safety. The financial security of purchasing insurance is reflected in the constraints of the Insurance Law on the insurer, even if the insurer fails, the interests of the policyholder will be realized by the receiver approved by the regulatory authority.

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