- The feature of insurance is that you can only get money when you need it. If you have nothing to do, you can't get any money back.
- For example, the medical insurance and auto insurance that you are most exposed to in your daily life. Medical insurance reimburses medical expenses only when you are sick. If you do not get sick, you will not get back the money; Automobile insurance is to take responsibility in case of a traffic accident. The insurance company will help you to bear all the losses, but there is no accident and you can't get any money back.
The insurance commonly understood by ordinary people is such a guarantee type.
The biggest feature is that the money you pay is out of proportion to the money you receive. For example, the car insurance is about 2000 yuan a year. However, if the car is good, it will cost six or seven thousand if you rub it with paint, not to mention that if there is a traffic accident, you can compensate up to one million yuan.
Then someone asked, can't the insurance company compensate for death?
This is a way of hedging risks in finance, that is, risk sharing. Everyone has bought auto insurance, but few people have accidents, which is equivalent to the money of those who have not had accidents.
(2) Savings insurance
In fact, savings insurance is the main type of insurance promoted by insurance companies. Generally, insurance sales you see are recommended to you.
It does not provide timely assistance like the insurance. When you encounter an accident, it will give you a compensation far exceeding the payment amount. To put it bluntly, it is a kind of mandatory savings, but the return rate is much lower than other financial products.
Some insurances look like insurance on the surface, but in fact they are just time deposits.
For example, life insurance, which sounds very similar to term life insurance, is a savings insurance.
Because of fixed life insurance, for example, I am 36 years old and expected to work for another 20 years. If I fail in 20 years, I will leave a fortune for my parents and children in the future, so I can buy a fixed life insurance.
If I live well, the insurance will naturally end. The insurance company does not need to make any compensation, but in case of an accident, the insurance premium of several hundred yuan can eventually compensate hundreds of thousands.
However, life insurance means that when I hang up and when I pay compensation, people will die in different ways. So for insurance companies, life insurance will pay compensation. For products that must pay compensation, insurance companies will sell more expensive, so their premiums are high.
To what extent? At the end of the day, the insurance company will pay you almost the same premium as you pay, which is equivalent to the average annual return as you deposit in the bank.
In China for example, someone bought a life insurance at the age of 30, paid the fees for 10 years, and paid more than 30000 premiums every year. For example, someone died at the age of 80, and could get more than 1.3 million in compensation.
