What is insurance?

Insurance means that the policy holder pays insurance premiums to the insurer in accordance with the contract, and the insurer pays for the property caused by the occurrence of the possible accident stipulated in the contract. A commercial insurance act that assumes the liability to compensate insurance premiums for losses, or assumes the liability to pay insurance premiums when the insured dies, becomes disabled, becomes ill, or reaches the age, term, or other conditions stipulated in the contract.

The significance of insurance

1. View the significance of insurance from a micro perspective: Insurance helps individuals or institutions reduce economic harm and enhance their risk management awareness by compensating the insured for their economic losses. It ensures timely recovery and transfer of risks when damaged, and also helps promote the balance of personal or family consumption and helps enterprises strengthen economic accounting. Strengthening people's understanding of the meaning and function of insurance not only brings good development to individual development, but also has an impact on the development of the entire society that cannot be ignored.

2. The significance of insurance from a macro perspective: Insurance plays a huge role in ensuring social stability and promoting economic development and foreign trade. It can not only ensure the normal progress of social reproduction and actively promote the circulation and consumption of commodities, but also help balance fiscal and credit income, increase foreign exchange income, and enhance the country's payment ability.

3. Economic compensation function. Economic compensation is the foundation of insurance and best reflects the meaning and function of insurance. It is specifically reflected in two aspects: property insurance compensation and personal insurance benefits. After a disaster occurs, the insurance company's timely compensation function is of great significance for restoring normal life and production.

4. The function of financial financing. The idle part of the formed insurance funds will be reinvested into the social reproduction process. In order to stabilize the insurance operation, the insurance company must ensure the preservation and appreciation of the insurance funds. This requires the insurance company to operate the funds, thereby ensuring the funds. The possibility of financing and enhancing the risk awareness in financial financing are also one of the manifestations of the integration of the meaning and function of insurance.

5. The function of social management. The purpose of regulating and controlling the entire society and all links through the social management function of insurance is to properly perform the functions of each system, department, and link, thereby achieving harmony and stability in social relations.

6. The transfer of risk does not mean that the disaster actually leaves the insured, but that the insurance company uses the financial resources of everyone to compensate the insured for economic losses. policyholders with the same risk.

7. Allocating losses is the premise and means of implementing compensation, and implementing compensation is the purpose of allocating losses. In addition, some life insurance products not only have insurance functions, but also have certain investment value. That is to say, if no insured accident occurs during the insurance period, when the benefit period is reached, the insurance money you receive will not only exceed what you paid in the past. Insurance premiums, but also other benefits other than principal. Therefore, insurance is not only a kind of protection, but also has investment income.

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What are the benefits of insurance

1 Don’t put all your eggs in the same basket

Many people are not interested in insurance , believe that the income from insurance is too low, and they would rather invest their funds in stocks, bonds and other projects with relatively higher risks. In fact, anyone who really understands investment knows: Don’t put all your eggs in the same basket. They often divide their funds into four equal parts and invest equally in stocks, bonds, real estate, and insurance. When the first three items achieve high returns, insurance helps them save taxes; when the first three items fail, insurance can promptly protect their financial resources or provide them with funds for a comeback. This reflects that insurance is a special kind of investment: "You should save money at ordinary times. If something happens, you will not be short of money. In case of emergency, you will receive life-saving money!"

2 Purchasing insurance can be reasonably tax-free and tax-avoiding

< p>Insurance compensation is to compensate individuals for accidental and unfortunate losses. It is not considered personal income and is therefore not taxable. According to the provisions of the Tax Law, compensation received by individuals can be used in calculating taxable income. In addition, if the insured dies during the validity period of the insurance, the life insurance company will pay the death insurance benefit as stipulated in the contract. If a beneficiary is designated on the insurance policy, the life insurance company will pay the insurance benefit to the beneficiary. The payment of this kind of insurance money is not treated as an inheritance. It has the following benefits: ① It can be exempted from inheritance tax and income tax, which is conducive to property transfer and tax saving; ② It does not need to be used to pay off debts, and no unit or individual has the right to claim this insurance The funds can be preserved and frozen; ③ inheritance disputes can be avoided; ④ the people you love most can legally obtain property.

3 Is it reliable to raise children to protect against old age?

Since my country implemented the one-child policy, the family structure has become a "4:2:1" type, that is, a couple has to raise four children. With an old man and a child, each person has to bear the living expenses of 2.5 people except himself. This is obviously a heavy burden that cannot be borne. Therefore, "raising children to provide for old age" may not be enough! *Heaven* and earth are not as good as* If you want to live a healthy life in old age, you can only plan ahead and make insurance plans early. This is the general trend of social progress. Life insurance companies can help us enjoy our old age comfortably, maintain our personal dignity, and truly provide for ourselves and have someone to rely on when we grow old.

4 Insurance is the embodiment of identity and worth

Insurance is the best expression of identity, credit and worth. The insurance amount on the policy can prove our own value.

5. Be prepared for danger in times of crisis

The average annual mortality rate of Chinese people is 3‰... An average of 16 people die in road accidents every day... Thieves may not come to visit us, but we still Are willing to install security doors; it may not rain, but umbrellas are a common item we always have; risks do not always happen, but we have to prevent them

6 Buying insurance when you are young is a good idea Responsibilities assumed when you are old

When you are young, prepare for when you are old, and when you have money, prepare for when you have no money. It is extremely wise to prepare for old age when you are young; it is true foresight to be prepared when you have money but not to have money. The greatest tragedy in life is to discover in your later years that you have not set aside enough living expenses for yourself. However, Chinese life insurance companies can ensure financial independence and a dignified life in your later years.

7 Buying insurance for yourself is a responsibility to your family

If you love your family, you can say: As long as I am here, I will take care of you. If you have one With insurance, you can say: Whether I am here or not, the policy will take care of you. An insurance can make you live a magnanimous life.

8 Buying insurance for your family is a responsibility for the future

Sometimes, insurance is... the responsibility that some people bear for others to continue to live! A little sacrifice in times of peace is worth a thousand times more prayers in times of disaster.

9 reasons to buy life insurance for your children

The premiums are cheap. The younger you are, the cheaper the premiums are and the more cost-effective the life insurance you buy is. This is well known. Establish good risk planning and educate children to understand risk management concepts early. Train children to have a sense of responsibility, develop good values, and develop a sense of responsibility. Transfer risks and ensure a stable family life. If you can insure your child with a whole life insurance policy soon after he or she is born, this policy will be the best gift when he or she reaches adulthood. Transfer property to children by buying life insurance for them and transfer assets to their names. From stumbling to steady steps, children have a long way to go. Parents may not be able to protect their children for a lifetime, but they can use life insurance to convey never-ending love and help their children get through every difficulty safely.

10 Rich people need to buy insurance

With the rise of insurance craze in China, many rich people have taken the lead in buying insurance. But there are also a small number of people who think: I have enough money and don’t need to buy insurance. In fact, rich people need to buy insurance more. Let’s take a look at the reason! Being rich does not mean that there are no risks in life, no accidents and diseases? Life insurance has the effect of "four ounces and a thousand pounds" in protecting risks. Life insurance can diversify financial risks, is exempt from inheritance tax, and can legally transfer property. Insurance is a small sum of emergency cash, so do we want to reject cash?

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How insurance can be the icing on the cake

1. Buying insurance is to buy peace, just like when we go to a temple to donate money and make a wish to the Buddha In the same way, it is a kind of spiritual sustenance, seeking peace and peace of mind.

2. Accumulate wealth, develop good habits of saving, and educate and cultivate children’s correct and good long-term financial management concepts.

3. Make adequate preparations for your children’s future education funds or entrepreneurial funds. No situation will affect the financial expenses for their success.

4. This health fund can enable people to maintain financial independence and personal self-esteem in old age. Not only can it reduce the burden on their children in the future, but they can also make their own decisions about whatever they want to do.

5. This is an excellent gift for children and babies. The love of adults will accompany the children throughout their lives.

6. Transfer property to children: Transfer property to the children’s names by helping them buy life insurance. Completely tax-free, prepare for the safe and complete transfer of assets in the future.

7. Insurance not only gives yourself and your family an extra guarantee, an extra responsibility, and an extra love in real life; at the same time, insurance is also a charity and love undertaking. , has helped many people in need, and is also a responsibility to the country. So it is a manifestation of a person's noble character, taste in life and status symbol!

8. Reflect your own value and show your economic strength. How much insurance you buy will determine your worth. The higher your worth, the stronger your economic strength.

9. Improving credit can be used as a commitment and credit to the lender when investing in corporate or personal loans.

10. Establishing a reserve fund is essentially "saving" funds in the insurance company, which can be used at any time. If there are good investment projects, funds can be withdrawn at any time without affecting the benefits of the policy. You won’t have to worry about being prepared when you travel or participate in colorful activities in the future.

11. Buy time with money, success = capital × ability × time. With certain capital and ability, and given enough time, career success will be just around the corner. With capital and ability, insurance can ensure your financial success in any situation.

12. The economic value of life = your annual income × working hours. Insurance allows people to have continuous financial income after retirement without being affected by anything to achieve their goals.

13. Insurance can transfer risks because we use the financial resources of everyone to help individuals.

People who do business know best and are good at leveraging their own strength. They can use four taels of gold to maximize the use of small funds, so that everything is guaranteed and they are in an invincible position.

14. Insurance is not the fastest channel for investment returns, but it is one of the best tools for financial management, risk avoidance, and tax avoidance. Insurance proceeds can be exempted from income and inheritance taxes, saving taxes and preserving property. Especially if the amount of property is huge, you may want to consider using insurance to transfer assets safely.

15. The fundamental reason for a comfortable and happy life is that the income is enough to cover all expenses. People with a long-term perspective know how to ensure a continuous source of income and keep their and their families' living standards stable and gradually rising.

16. Insurance is a stable and healthy financial management that can ensure our future quality of life and increase our financial resources. Improving the reasonable investment allocation of property can enable us to choose better living conditions in the future and be prepared to ensure the quality of life.

17. Insurance has the function of preventing inflation and currency devaluation.

18. One method of investment and financial management is not to put all the eggs in the same basket and divert part of the funds to invest in insurance. This is a strong and safe financial barrier.

19. People who own properties in public places can not only protect their own property, but also protect other people in public places.

20. The insurance money will not be frozen and is completely under your control. This can avoid falling into debt repayment and can be used as a precious resource to be retained for a comeback.

21. When we are rich, capable and healthy, buying insurance is not a burden (assuming there is 6,000 yuan per month, if it is 1,000 yuan less per month, do you think it will have any impact on your life? A particularly significant impact?), which is the icing on the cake of life.

22. Provide basic guarantee for continued operations for small enterprises or small operators, and provide better and safer capital and cash flow solutions for medium and large enterprises.

Extended reading: How to buy insurance, which one is better, and step-by-step instructions to avoid these "pitfalls" of insurance