Inflation, so will the insurance you buy now still be useful in 20 years?
To be honest, inflation is worthless, and this is an inevitable phenomenon.
In other words, none of us can escape inflation, whether you buy insurance or not, whether you do financial management or not, inflation will affect your purchasing power. Even if you hold the money in your hands and put it in the bank, he himself will depreciate.
Whether it is investment money or insurance money, it will shrink when it encounters inflation, and we can't change this.
Then someone is going to say, since inflation can't escape, then I will use the money to invest, buy**, buy**, and outperform inflation.
Logically so.
But you have to know that investing is risky.
Many people who want to beat inflation by investing not only fail to outperform in the end, but may even lose their principal.
So no matter what you buy, the priority must not be inflation.
And many people don't realize that buying insurance itself is actually a way to fight inflation.
For example, if you prepare a pension of 500,000 yuan for yourself, if you spend money to save it yourself, then you have to spend 500,000 yuan.
However, if you choose to increase your sales, you may spend more less.
Because your principal can grow steadily at a compound interest rate of 3% per year.
A 30-year-old person earns 50,000 yuan a year, and it only costs a total of 250,000 yuan for five years.
But when he was in his 50s, the money doubled directly, and 250,000 could become 500,000, which was equivalent to spending 250,000 principal and getting a pension of 500,000.
And as long as people are alive, this pension can continue to increase.
This type of investment is itself a way to fight inflation.
Therefore, if you are really worried about inflation, you should choose the right product in advance.