What Is an Investment Allowance?

Investment insurance is a newly emerged type of insurance. It adds investment functions to the basic protection functions of insurance. Compared with traditional insurance, this type of insurance is more complicated, and it is concerned by the public because of its income. Whether to buy insurance or to invest in financial management is actually not a proposition. As far as the types of insurance products are concerned, insurance has consumer-type insurance, that is, pure consumption insurance like everyone eating meals and buying clothes. There are also savings-type insurance like funds, government bonds, and bank deposits. It also guarantees financial management and gains.

Investment insurance

Right!

Investment insurance is a newly emerged type of insurance. It adds investment functions to the basic protection functions of insurance. Compared with traditional insurance, this type of insurance is more complicated, and it is concerned by the public because of its income. Whether to buy insurance or to invest in financial management is actually not a proposition. As far as the types of insurance products are concerned, insurance has consumer-type insurance, that is, pure consumption insurance like everyone eating meals and buying clothes. There are also savings-type insurance like funds, government bonds, and bank deposits. It also guarantees financial management and gains.

Chinese name

Investment insurance

Attributes

Insurance

Corresponding

Safeguard function

Object

Investment function

Xiao He has a fixed monthly income. He lives in his parents home, and the daily expenses are not large. He also pays great attention to saving. Except for some fixed expenses and the monthly food expenses of 600 yuan paid to his parents, Xiao He unknowingly saved 50,000. yuan. Compared with the "moonlight" lifestyle of some young people now, Xiao He has saved a considerable amount of fixed assets.

With this first bucket of gold, Xiao He first thought of investment. After all, the money is in the bank. Although the insurance, the yield is really not good. The interest for one year is sometimes not enough for a piece of clothing. So, Xiao He started to read various financial magazines, but after reading it for a month, although she was good at bookkeeping in the liberal arts, she felt a little foggy in the face of various stock, gold, and fund investment methods. As a new graduate, how can Xiao He properly invest the 50,000 yuan in his own hands?

The first step beyond investment:

</ strong> The question of determining financial goals, Xiao He, is very common among some young people nowadays. Facing the ever-changing investment market, they have established an investment philosophy. But there is no clear goal and direction on how to put it into practice. In this regard, it is recommended that those young people must first clarify their financial goals. The so-called financial management goal is not simply a general "more money is better", but to formulate and express an achievable financial management goal as accurately as possible according to your actual situation. Then, develop a practical financial plan around this clear goal, and strictly implement it to achieve your financial goals. Conversely, if your goals are unclear and your financial plan is just following your feelings, then the final effect will vary greatly. So what kind of financial goals are clear? Here are three criteria: clear time, measurable quantity, and ability to achieve. For example, you can expect to buy a house, no problem. When will it happen? Don't you wait until you retire? There is a big financial difference between achieving within 10 years and achieving within 30 years, so the financial management goals must first have a clear time to complete. Once you have decided that you want to buy a house, consider the amount of money. Cheap suburban second-hand housing can be realized as long as 200,000, while the high-end single apartment in the urban area is 700,000-800,000. Finally, it is necessary to consider its achievability based on individual capabilities and market environment requirements. It is difficult to overcome and avoid the difficulties in investment and wealth management.

Insurance investment:

The starting point for beginners in financial management is that compared to other financial products, because insurance investment risks are low, the returns are generally inferior to those of funds and stocks, but it is very stable. Because of this, insurance investment is especially suitable for beginners who are unfamiliar with financial markets or have no time to take care of their investment because of busy work. Maybe some people are wondering: Isn't insurance as a risk management tool "prepared for unforeseen things"? How can you manage your investment? In fact, "insurance and financial management" has two meanings. The first is to use the protection function of insurance products to manage personal risks in the financial management process and ensure financial planning. This is not only necessary, but also very efficient. The financial mentality of "don't be afraid of 10,000, just in case" was established by our ancestors a long time ago, and the most obvious way is to save and manage money. Whether it is at home or a bank, this money cannot be spent casually. This is like insurance for yourself. But if you go to an insurance company to apply for insurance, you won't need that much money to get the same protection. The extra liquidity can be invested in other financial products and create more benefits. Isn't it more efficient? Second, insurance itself comes with financial management functions. In response to the increasing willingness of the common people to invest, many insurance companies have also designed many new types of insurance in recent years. Based on the protection function, they can better add value to insurance funds.

Dividend insurance:

</ strong> The fastest-growing insurance investment. Here, let s first take a look at what is dividend insurance. In a simple analogy, dividend insurance is like giving a portion of the company's operating results to life insurance consumers. Its role is similar to the price reduction and discount of commodities. Its role in attracting consumers, activating the life insurance market, and promoting the development of the life insurance market is: It goes without saying. Compared to deposits of pure savings business, dividend insurance is a business with investment function and investment risk. Its advantages are good security, no interest tax deduction, in addition to interest, it can also share the operating results of insurance companies. It also comes with a certain insurance function. But at the same time, there is a certain degree of unpredictability in dividend insurance.

The following is a comparison of the "Hongyu" dividends newly introduced by China Life Insurance in 2005 with bank savings deposits. First of all, this is a "discount-type" insurance, which is guaranteed for 6 years and is returned to investors at a rate of 800 yuan for every 10,000 yuan. In other words, the investor only needs to pay a principal of 9,200 yuan. After maturity, the investor can be divided into "principal + accumulated bonus". The bank's 5-year 10,000 yuan savings deposit interest is about 1,400 yuan, although it is a lot higher than 800 yuan, but if the cumulative dividend is high, it can not only "offset" the difference, but also the insurance itself, it is quite good for investors attractive. According to calculations, if the annual dividend rate is 1.5%, the cumulative dividend is 386.4 yuan. Generally speaking, the profit of dividend insurance of expert financial management will be higher than the one-year bank deposit interest rate. However, the financial management income is subject to many factors. The amount of dividend depends on the death compensation of insurance companies, low operating expenses, investment channels, and capital utilization Whether it is smooth and effective, and the situation varies from year to year, the results can only be obtained after the annual accounting settlement is completed. Dividends are therefore unpredictable and cannot be guaranteed. If you believe that the insurance company's dividends will be more than 1.5% per year, it is cost-effective to buy dividend insurance, otherwise it is not cost-effective.

In general, dividend insurance is a combination of insurance and investment functions. Basically, it is returned on time, and there will be dividends. However, for families who need money in the short term, generally don't use the urgent money to buy dividend insurance, because the profitability of dividend insurance is poor, once they are insured, they must be reinsured with cash in the middle. It's hard to get everything. If you really need to buy dividend insurance, you must first save a portion of the funds for emergency use by the family. For families with unstable income, it is not appropriate to buy more dividend insurance. These families should mainly save savings deposits. Even if they buy insurance, it is best to choose one-year short-term insurance. In the event of an accident, the amount of compensation is also high. For families that have a stable source of income and do not have a bulk purchase plan in the short term, buying dividend insurance is an ideal investment. For singles, investment insurance is also a better way to solve the problem of retirement. If the investment purpose is not very clear, but just have some spare money in hand, and feel that it is not cost-effective to deposit a bank, and want to change investment tools, this situation can consider universal life insurance.

How to invest a large return

</ strong> Purchasing investment-type insurance generally requires a relatively abundant economy. For example, the funds for universal life insurance should be funds that consumers are sure not to use in the short term. If they want to withdraw the money after a few years of insurance, it would be better. Savings in a bank. Dividend insurance is no different. Because the profitability of dividend insurance is poor, once it is insured, it must be reinsured with cash in the middle, and it may be difficult to obtain the principal even if the surrender is insured. If you really need to buy dividend insurance, you must first save a portion of the funds for emergency use by the family. It is worth noting that universal insurance products are similar to investment-linked insurance in that their premiums are deducted from high fees before entering the wealth management account. Therefore, the guaranteed income like universal insurance is not the rate of return of all the premiums, but the part of the premiums after deducting the costs and the protection costs into a separate account.

Therefore, if the customer purchases universal insurance, the cost is relatively high a few years before the payment. At the same time, in selecting universal insurance products, in addition to comparing the minimum return rates they promise, the level of capital utilization and comprehensive management capabilities of insurance companies are also important because it directly affects the cost of investment.