Is wealth management insurance pure financial management and no personal protection?

Mondo Finance Updated on 2024-02-21

After the basic insurance protection is done, many friends have turned their attention to financial insurance products.

Achieving wealth growth through financial insurance seems to sound really good.

However, financial insurance is a place where many friends step on the pitfall.

So, is wealth management insurance pure financial management, without personal protection?

Insurance wealth management refers to a financial management method that realizes wealth appreciation or protection through the purchase of wealth management products issued by insurance institutions.

This type of wealth management product is usually issued by insurance companies and is mainly invested in low-risk, fixed-income investment areas.

Such as treasury bonds, treasury bonds reverse repo, large-amount certificates of deposit, bank deposits, bank wealth management and other low-risk varieties.

Usually, there are several types of financial insurance:Annuity insurance, increased whole life insurance, universal insuranceWait.

Annuity insurance and increased whole life insurance are suitable for people with long-term financial planning, with certain returns, but not high yields.

Universal insurance is more suitable for people who have spare money and want to manage their finances in the medium term, with guaranteed returns, but the total returns are uncertain.

We can take a look at the definitions of these types of insurance products.

Annuity insurance is based on the survival of the insured as the payment condition, and the insurance money is paid on an annual and monthly basis until the death of the insured or the expiration of the insurance contract.

Obviously, annuity insurance has protection against death.

Incremental whole life insurance is also a type of life insurance.

After the contract is concluded, the insurance company should pay the insurance benefits regardless of when the insured dies.

As a life insurance, you must have understood that it is a protection against death or total disability.

In this way, in fact, these two types of financial insurance have a certain amount of protection.

In other words, wealth management insurance is still essentially an insurance product, but due to the product design, it comes with certain financial management functions.

This is also why the returns of wealth management insurance are not very high, because their main function is not financial management.

On the basis of personal protection, through long-term holding of the policy, compound interest is calculated, and the cash value of the policy is accumulated, so as to generate income, which is financial insurance.

Compared with common bonds, ** and other financial products, wealth management insurance mainly has these differences.

The first is high security.

Because insurance contracts are protected by law, and the regulators have very strict control over wealth management products.

Therefore, we do not have to worry about the safety of the financial insurance policy we hold.

The second is that the stability is relatively high and the risk is small.

After all, the higher the return, the higher the risk.

However, the general income of wealth management insurance products is relatively low, but it is better to be stable, and there is no need to take too high risks.

Moreover, although the income is low, it is still relatively certain.

After all, the income of annuity insurance and incremental whole life insurance is related to the cash value of the policy, and the cash value of the policy can be directly calculated.

The amount of money that can be received each year, how long it can be received, and how much it can be received in total are clearly recorded in the contract.

This is also relatively good.

Finally, there is also protection.

After all, it is still an insurance product, and it can still provide protection for accidental injury, medical treatment, pension and other aspects.

In general, insurance and wealth management is a financial management tool with relatively low risk, flexible investment period and stable income.

If you want to invest steadily and have certain returns, then this is indeed a good choice.

Of course, it is also necessary to clarify your needs and choose the right product.

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