Annuity insurance means that you sign a contract with an insurance company, and you pay the premium to the insurance company every year (usually a large amount), and the insurance company will start to refund you in the agreed year.

China can sell trillions of insurance every year, many of which are annuity insurance. The reason why we can sell so much is because annuity insurance does have many advantages.

First of all, annuity insurance is very safe. Insurance involves the national economy and people's livelihood and is the safest financial product. If you hold it for a long time, annuity insurance will not lose money.

In addition, the interest rate of annuity insurance is certain, although it is only 3%-4%, but it can remain unchanged for hundreds of years. These are the promises written into the contract.

In addition, annuity insurance also has the function of wealth inheritance. Through reasonable design, annuity insurance can also achieve very safe asset isolation and wealth inheritance under certain circumstances.

Of course, every coin has two sides, and the disadvantages of annuity insurance are also obvious:

(1) The guarantee is very small. The only guarantee of annuity insurance is to return the premium after death. In case of serious illness, the money is hard to resist the risk. Unlike critical illness insurance, a premium of 3,000 yuan can pay 500,000 yuan, which can play a real insurance role. Therefore, I have always stressed that buying insurance should be "guaranteed first, then managed".

(2) the income is not high, and the yield of annuity insurance is generally 3-4%, which is not much higher than that of bank deposits.

(3) The access to funds is not flexible enough. In the first few years of insurance, annuity insurance can't be taken out, but it can only be surrendered or loaned through policy. But at this time, if you surrender, you will generally lose money and even get the principal back.

Generally speaking, if you have complete insurance and some spare money, you can consider annuity insurance.

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