??A certain lady is 38 years old and is not planning to get married and have children. Her friend suggested that she configure a pension annuity insurance policy to provide herself with some supplementary pension. Ms. Gao did the math and felt that the fixed interest rate agreed in the insurance contract was too low and "couldn't beat inflation." After much hesitation, she still didn't buy it...
?What makes us feel strange is that among many financial instruments, people pay special attention to whether insurance can beat inflation, as if insurance has no value as long as it cannot beat inflation.
?But as far as we know,??Deposits cannot beat inflation, but no one complains; retail investors who invest in stock funds not only cannot beat inflation, but many also end up with losses or being completely trapped, but we are happy with it.
?So, when we say "insurance cannot beat inflation, so buying insurance is not worthwhile," we also need to think about this: If you don't buy insurance with this money, is there any way you can make it beat inflation? In the current economic situation and investment environment, I am afraid that few people dare to praise this Haikou.
⚠In addition, we also need to understand: the core function of insurance is not to beat inflation, but to transfer risks and obtain a certain cash flow. When a risk occurs, insurance can cover part of the economic losses, such as
?In the family# asset allocation, there must be "offensive assets" mainly used to achieve wealth# value added,like# Stock Fundetc.; we also need to have “defensive assets” mainly to safeguard our bottom line of financial security when risks occur.
?Having said that, even from# wealth preservationFrom a value-added perspective, insurance is also likely to outperform inflation.
✅The most typical one is that it appears during the payment period.# insurance accident, after the insurance company pays the insurance premium, the insurance contract is terminated, and the remaining premium does not need to be paid. In this case, if we calculate the premiums paid and the insurance money received, we will find that insurance outperforms more than just inflation❓
✅Another situation is life annuity insurance (Figure 7). The characteristic of this kind of insurance is that the longer you live, the more insurance money you get.
?So, for this type of annuity insurance, whether it can beat inflation depends on whether the insured lives long enough. Even from a purely investment and financial management perspective, some compound interest-increasing# financial insuranceProducts, as long as they are held for a long enough time, can completely outperform inflation✔.
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