This article is the original 90th article of [Cute Moms on Risks]. Author: Xie Feiran recently saw a picture, which even surprised me. Insurance will top the investment list in 2021. In fact, I have some doubts about its authenticity. Even I, an insurance agent, have never felt h

This article is the 90th original article of [Cute Mom on Risk]

Author: Xie Feiran

I saw a picture recently, which even surprised me. Insurance will top the investment list in 2021. In fact, I have some doubts about its authenticity. Even I, an insurance agent, have never felt how much people love and recognize savings insurance. How come it has become the top of the investment list?

Every time I talk about savings insurance, most people deflect the problem with the excuse that it cannot beat inflation, is slow to recover capital, has low returns and is inflexible. To tell a joke, buying bank fixed deposits does not care about inflation, buying funds or stocks does not care about the safety of the principal, but when it comes to savings insurance, there are various reasons. In the final analysis, savings insurance is not recognized. It doesn’t matter if you don’t recognize it. No special recognition is required, as long as you use it as a financial tool without prejudice.

Reason 1. Forced savings. It seems that these four words are easy to do, but in fact it is very difficult. Just like posting a certain treasure's bills every year, it's the same reason why you spend so much even though you don't make that much money. I obviously planned to connect to this financial product every time after I bought it, but when I was busy at work, I went home to tutor my homework and forgot about the financial product that I needed to connect to next time.

As soon as there is money in the bank card account, various merchant festivals will come, and countless people will rack their brains to get you to spend money. It is still difficult to save consciously. Instead, choose to pay premiums every year and make mandatory savings. No matter what, we all know that there will be losses in surrendering the policy in the early stage. In order to avoid losing money, we can force ourselves to complete the premium payment, and the rest is time to rest and win. There are two situations when you are anxious for money: getting sick and buying a house. Fund fixed investment is flexible, and it is possible to use the long-term savings to buy a house at any time.

Reason 2: Guaranteed capital and guaranteed income, risk-free income is pretty good. The cornerstone asset in family assets should be considered savings insurance. The cornerstone assets must be principal-guaranteed, and the income may not be high, but the principal must not be lost. Products currently on the market that can guarantee principal and interest include bank deposits, certificates of deposit, and treasury bonds. I really can’t think of any other products. Whether it is a certificate of deposit, a bank deposit, or even a treasury bond, there is no lifetime guarantee of income; they all have a fixed number of years. Savings insurance can achieve lifelong principal protection and income, and permanent positive income. For cornerstone assets, do you really care about high short-term returns? In the long run, the income from savings insurance is much higher than the several financial products mentioned above that guarantee principal and interest.

Reason 3. Reserve funds for children’s education. If we are already parents, what we have to pay attention to is the education of our children. In addition to daily expenses, we need to plan in advance the expenses for our children's further education. After all, whether the child goes abroad is always a multiple-choice question for the child, and the parents provide financial support. Early planning is better than no planning at all. The cost of going abroad is at least 1 million. Savings insurance can also have a leverage effect. If you start planning when your child is 0 years old, you will pay 60,000 yuan per year for 10 years. By the time the child is 20 years old, the cash value of the policy will exceed 1 million. The converted simple interest exceeds 4.5%.

Reason 4: Lock in exclusive pension. An old saying goes: "Be born in sorrow and die in happiness." No one wants to live a high-quality life when they are young, but in old age it has dropped to the point where even if they want to eat Magnum ice cream, they have to think about whether it is higher than the price of vegetables. As long as you can maintain a certain quality of life in old age, you need a large amount of financial support. After all, when we are young, we have the ability to earn more money, but in old age, we can only rely on pensions to support our entire lives, which seems very thin no matter what. When you are young, plan to use part of your funds for life support in old age. This is a long-term plan, and there is no need to pay too much attention to short-term gains.

Summary

In my opinion, these four reasons are really heartbreaking. When you are young, facing reality head-on and escaping cannot solve your future life. Sooner or later we have to face it, and the sooner we face it, the smaller the cost we have to pay. If you plan a savings insurance at the age of 30 and if you plan a savings insurance at the age of 50, even with the same principal, the effect you want to achieve will be very different. The age of 30 is a full 20 years longer than the age of 50. 20 years is almost enough time to double the principal. This is the time value of compound interest.

Savings insurance is a simple and unpretentious financial product, and its existence is very meaningful. While transferring risks, it can protect the principal and income for life. This is a function that cannot be replaced by other financial assets. Each financial product has its own unique advantages. Asset allocation teaches us to use different financial products to plan our lives in advance, and to make our lives better.

As an insurance consumer, if you encounter problems that you don’t understand during the process of buying insurance or don’t know how to purchase insurance products, especially it involves claims.