Among all kinds of old-age financial instruments, the advantages of commercial old-age insurance have special significance for the old-age. In a complete pension portfolio, there is no doubt that insurance is a solid foundation, just like a "risk stone". What are the unique advantages of commercial endowment insurance? Understand the six advantages of commercial endowment insurance.
First of all, commercial insurance such as pension insurance is relatively simple and operable. After the insurance, as long as the annual payment is made on time, basically there is no need to do anything. Fund management can be done by the insurance company.
Moreover, the return of pension insurance is particularly clear. As long as you determine how much pension you want to receive from the insurance company every month after retirement as a supplement, you can let the insurance company help you to calculate the amount of money you need to buy and the payment time. When you reach the agreed time, you can start to receive money on a monthly basis. However, it is difficult for other financial products to accurately predict the expected annual returns after 120 or 20 or 30 years, to give a positive and accurate answer, and to be controlled by individuals. Of course, because the return is relatively fixed and can be planned, the expected annual return level of insurance is relatively low.
Third, as a pension fund, the most basic requirement is to pursue the safety of principal, moderate expected annual income and resist inflation, which is different from the principle of general capital investment in pursuit of greater expected annual income, which is also an advantage of stable financial management type of commercial insurance to assist pension.
Fourth, insurance can also force personal savings. There are many ways to spend money in youth. If you don't force yourself to make some preparation in advance for the future pension, the money will be spent. Long term insurance just has the feature of compulsory saving, so we must pay the premium on time and quantitatively. This feature has a "heteronomy" effect, which is more stable and more effective for people with obvious ordinary consumption tendency, low savings rate and poor investment habits. Moreover, the earlier the plan is planned, the lower the rate of endowment insurance will be due to the younger age.
Fifthly, the Pension Reserve is a long-term financial management plan. The insurance that calculates the expected annual income through compound interest rolling is also the insurance that the longer the reserve time is, the better the effect is. The 'magic of compound interest' can be clearly reflected through the long-term commercial insurance such as pension.
Sixthly, the life-long pension insurance can make people live longer and get more. It can partly solve the economic pressure brought by 'too long life' after retirement, which is a feature that no other financial instruments can achieve.
The advantages of commercial endowment insurance are great, so most consumers will provide themselves with a commercial endowment insurance. But when choosing the insurance plan, we must combine our own actual situation and choose the appropriate insurance type.