What is insurance financing, what are the characteristics of

What is insurance financing:

Insurance financing mainly includes two functions: financial function and security function. The guarantee function is the basic function of the insurance product, which can manage the personal risk in the financial management process and ensure that the financial planning can proceed smoothly. Insurance is a risk management tool that prepares for “unpredictable risks”. In the event of an accident, it may seriously jeopardize our normal life and disrupt financial planning. Therefore, it is necessary to invest a small amount of money to purchase insurance when the funds are allocated to make up for the economic losses caused by the accident. The second meaning of insurance financing refers to the function of investment and wealth management. The common insurance functions with strong financial management function include dividend insurance, investment insurance, universal insurance, etc. The maintenance and appreciation of funds on the basis of the guarantee function is an insurance guarantee function. Extension. In recent years, insurance companies have designed a number of insurance products that focus on investment and wealth management. They have low risks and high returns. They are especially suitable for those who are unfamiliar with the financial market or have no time to take care of their own investment.

Characteristics of insurance management:

Insurance and financial management have both security function and investment function. They are closely related to individual and family members, diseases and other uncertain factors, and are related to different investment methods and fund allocation. Therefore, it is necessary to be clear. Personal financial planning. The most important feature of insurance financing is low risk, high security, and guaranteed capital. Insurance is a contractual act. The rights and interests of customers are protected by both law and contract. Compared with the risk investment of funds and stocks, the principal can be protected from the investment environment and ensure the stable and value-added wealth. In addition, the insurance financial return rate is moderate, according to the length of the client's investment period to determine the asset allocation ratio and investment plan, can guarantee the basic investment income, and does not require the customer's own operation, with a certain mandatory savings, more suitable for wealth management products People who don’t understand but want to benefit.

Financial insurance knowledge:

Insurance wealth management is essentially a life insurance product with investment function, divided into dividend insurance, investment-linked insurance, universal insurance and so on. Dividend insurance refers to the fact that an insurance company distributes the actual operating surplus to the policy holder in proportion. The dividend distribution of dividend insurance is not fixed. It is related to the company's operation and can be selected by the customer. Investment-linked insurance divides premiums into two parts: “guarantee” and “investment”. The part of the return on investment is not fixed. The customer can choose the proportion of funds allocated. This guarantees the basic guarantee amount and also obtains certain Investment income. The biggest characteristic of Almighty Life Insurance is that customers can participate in the investment activities in the investment account. The universal insurance usually guarantees the guarantee and the freedom of collection. Most of them are used for education or pension investment and financial management. Insurance financing is a stable investment method. It is recommended that customers allocate goods reasonably and realize the preservation and appreciation of wealth under the premise of guarantee.