There are many reasons why this product is popular among the public.

First of all, it has low risk and low threshold without considering time value and inflation. There are many financial investment products on the market now, such as: stocks, funds, futures, foreign exchange, gold and silver. Stocks and funds are affected by government and international economic policies and are subject to great uncertainty. Financial news and the situation of listed companies need to be analyzed. Futures and foreign exchange are traded in two directions during the day. Not only are investment funds large, but the market fluctuations are also large. It is also affected by international financial policies. Although gold and silver have small market fluctuations, they are expensive and have high investment thresholds. Compared with the previous financial products, this product is "safe". After all, most people are risk averse.

Secondly, the apparent return of this product is high. When time value and inflation are not considered (the following is an example of buying three points), the total value of investment = 3000*110*1253* 10=32630, total recovery value=3000300*15+10*bonus+terminal bonus+accidental compensation, (check the information and know that the bank’s current interest rate is 0.4% and regularly 3%). Among them, 10*bonus = (3000*0.4% *15+3000*0.4%*14+3000*0.4%*13+…+3000*0.4%*6)*10=12,600 yuan, so under ideal conditions of no accidents and no illness, the income is >17,100. And if this fund is deposited in the bank in installments using one of the commonly used financial management methods, the income will be =3000*3%*15+3000*3%*14+3000*3%*13+…+3000*3%*6= 9450. Compared with low-risk investments such as depositing in banks, this investment product has higher returns.

At the same time, it has many attractive features. While the income is higher than that of bank deposits, it also enjoys the protection of insurance. This is a long-term investment, so you have to consider whether it can be recovered after many years. Compared with buying corporate bonds, the reputation of banks is much higher than that of many companies, which makes the recovery of funds more guaranteed.

For banks, because the apparent income of this product is obviously greater than the savings income, many people are willing to buy this product, which is a good thing, but at the same time, savings are reduced, and customers who buy this product are They are risk averse, so the growth of this business may be entirely due to the reduction of savings. Moreover, in this era of highly developed technology, accidents occur frequently. In addition to paying higher financing costs than savings, they also have to pay high accident compensation. , so from the perspective of bank interests, this is unreasonable for banks, but this product has its unique charm. Therefore, banks should reduce the benefits to customers, such as not paying terminal dividends and paying single dividends. In this way, surface income = 300*15+(3000*0.4%*15+3000*0.4%*14+3000*0.4%*13+…+3000*0.4%*6)=4501260=5760 Although the income is reduced But it still has its appeal, because people only spend 3690 (9450-5760) yuan to buy insurance for fifteen years, which is more cost-effective than buying other insurance separately and is completely acceptable for most families. Acceptable, this not only increases business but also reduces expenses.

For ordinary people, I would like to give you some suggestions on investment. Consider time value, inflation, and investment purposes.

Let’s still analyze this product as an example. If it is a general investment, this product is not suitable because when investing, don’t just look at the surface return. Generally, investment institutions will set the surface return relatively high. . Money has a time value, so consider its time value when investing. Here we still take this investment product as an example to illustrate. Below we convert the total expenditures and recoveries into present values ??for comparison. Because treasury bonds are issued by the state and can be regarded as risk-free investments, we usually use its interest rate as the time value rate. According to the data, the average interest rate is 6%, because 3263 is paid every year for ten years, so this is a set of Annuity (characteristics of annuity: 1. Periodic, 2. Equal amounts, 3. Two or more cash flows, 4. Same direction), and 47,100 will be recovered after 15 years (terminal bonus is ignored here), so it is represented in the cash flow diagram as follows ( i represents the beginning of the i+1th year, the downward arrow represents expenditure, and the upward arrow represents income)

The present value of the total payment: A* =3000*6.802=23406 yuan

(Explanation: Represents the present value of payment, A represents annuity, represents the present value coefficient of an annuity with a time value rate of 6% and a term of 9 years. 6.802 is obtained by looking at the annuity present value coefficient table, because the first year is paid at the beginning of the year, so there is no need for discounting So there are only nine years instead of ten. The mathematical method in the above formula is slightly different from the annuity calculation, but the difference is small and acceptable.

)

The present value of the total amount recovered: =FV* = ( )= (300045012600)*0.417=19640 yuan

(Explanation: Indicates the present value of the total amount recovered, FV represents the final value of the total recovery, and represents the compound interest present value coefficient with a time value rate of 6% and a period of 15 years. =0.417 is obtained by checking the compound interest present value coefficient table. The mathematical method in brackets is the same as the compound interest present value. The calculation result has a small difference and is acceptable)

The difference in present value between investment and recovery is 3766, so if it is for profit, this product is not cost-effective. This product is not as good as treasury bonds because For any investment, risk control must be considered first, and profit second. The maturity of government bonds is much shorter than that of this product, so the returns are more substantial and risk-free. If you value its insurance claims, then it is advisable. After all, with the current value of 3,766, you can buy a three-fold car accident compensation package, with 15 years of critical illness coverage, and you can still enjoy 70%-90% Hospitalization medical reimbursement.

After considering the time value and investment purpose, you must also consider inflation. The inflation rate in China is increasing year by year, so money is becoming less and less valuable, so investments under inflation must establish correct investments. concepts and a correct understanding of various investment products. For example, physical investment is a better investment under inflation, which can offset part of the inflation rate to a certain extent. Of course, no matter what kind of investment, it must be determined according to personal circumstances.