Not everyone is suitable to buy investment insurance

At present, investment-linked insurance has become a major wealth management product for many investors in home finance. “Not everyone is suitable to buy investment-linked insurance.” Insurance experts said that investment-linked insurance is a risk-investing investment wealth management product. There is no guaranteed income. The actual income is directly linked to the investment account income selected by the investor. The insurance company does not Committed to return on investment. Insurance experts suggest that the following three categories of people are not suitable for purchasing investment-linked insurance.

First, only those who protect demand are not suitable for purchasing investment insurance. “Investment-linked insurance is an investment-type insurance. There is no pure consumption-type insurance in terms of protection.” Insurance experts say that after the investor purchases the investment-linked insurance, the premium paid is divided into two parts according to the insurance contract: one part enters the insurance account. To give investors life insurance protection; the other part enters the investment account, that is, entrusted to the insurance company for investment operation according to the agreed management fee, and the investor realizes the income through the growth of the investment account net value. Therefore, only those who have insurance coverage needs are not suitable for purchasing investment-linked insurance, but should start with risk protection such as planned diseases and accidents.

Second, the elderly do not want to buy investment insurance. Insurance experts said that investment-linked insurance allows insurance companies to invest 95% of their clients' funds in stocks, funds and other "double-high" products, plus the purchase of investment-linked insurance, which requires initial fees, policy management fees, and asset management fees. Investors, such as fees, fees, etc., investors need to bear a lot of "loss of income" risk. Therefore, elderly people with weak risk tolerance should not purchase investment-linked insurance.

Third, people who need to use funds in the short-term do not buy investment-linked insurance. “Investment insurance is suitable for long-term investment.” Insurance experts say that in the short run, regardless of the performance of the capital market, investment insurance is difficult to fully satisfy the policyholders.

In addition, if the product is forcibly redeemed because of short-term emergency funds, the insured will have to pay a certain surrender fee for this. According to the actuarial regulations of investment-linked insurance, the surrender rate of investment-linked insurance is decremented in the first five years of the policy year, which are 10%, 8%, 6%, 4%, 2% of the premium, and the premium is refunded after the sixth year. The rate is zero.