Advantages of insurance investment:
1, safety original
Besides capital, the funds available to insurance companies are mainly various insurance reserves, which are liabilities on the balance sheet and the undertaker of insurance credit. Security means that funds can be recovered as scheduled, and profits or interest can be fully recovered.
2. profitability
The purpose of insurance investment is to improve its own economic benefits, make investment income an important source of income for insurance companies, enhance the ability to pay, reduce the rate and expand business. Insurance investment, to a certain extent, limits risks, and the maximum income is about 20% plus the company's annual compound interest dividend.
3. Asset liquidity
Insurance funds are used for compensation and payment and are governed by the law of contingency. Under the premise of not losing value, insurance investment can immediately turn assets into cash, pay compensation or pay insurance money.
Disadvantages of insurance investment:
1, it is difficult to resist the impact of inflation, because the products purchased are fixed interest rates. If the inflation rate is relatively high, there is a risk of depreciation in the long run.
2. Dividends are uncertain. The amount and existence of dividends are related to the operating conditions of insurance companies, and it is also possible that the company's poor operating performance leads to losses.
3. Investment-linked insurance is easy to be blindly adjusted due to short-term fluctuations, resulting in losses.
Adoption. Oh, thank you
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.