With the continuous growth of China's economy and the continuous rise of residents' savings balance, financial management has become a word that attracts the attention of residents
As a product with protection, savings and investment functions, insurance has become a financial tool that cannot be ignored.
First of all, from the perspective of life insurance, one is that the person who occupies the main position in the family income, as the insured and the insured, buys whole life insurance, and when he dies, the family can use the insurance money to solve the problem of maintenance and education expenses. The second is to take the next generation as the insured and the death of the insured as the condition for paying the insurance benefits. All this minimizes the risk of a sharp decline in the main household income.
Second, for the vast majority of wage earners, they will face financial problems such as reduced economic income capacity and excessive burden of child support after retirement. If you buy annuity insurance during work, it can play a role in smoothing cash flow, which is also an advantage that other financial planning does not have. Finally, from the perspective of non-life insurance, various risks that can be transferred due to economic losses such as property damage and civil liability.
The insurance benefits of the beneficiaries under the laws of our country are not regarded as the inheritance of the insured. That is, when the insured dies, the insurance money received by the beneficiary of the policy does not have to pay various taxes and does not have to pay the insured's debts. This will give insurance financial management a tax advantage over other financial products and close the after-tax income gap with other high-yield investment products.
Insurance means that the insured pays the fee according to the contract, and when an accident occurs, the insurance will relieve their financial pressure, make their funds less tight, and better face difficulties.
Regarding financial management, there is no unified definition in China, and the definition of financial management by the American Financial Planner Certification Committee is: personal finance refers to how to formulate and rationally use financial resources to achieve personal life goals. As can be seen from this definition, financial management is very different from familiar investing: the purpose of investment is simply to preserve and increase value. Financial management is a long-term plan that can be implemented step by step, and life goals can be achieved one by one. The purpose of financial management is not only to increase the value of assets, but also to ensure financial security Risk protection, ensuring that the elderly have support, providing education funds for children and many other aspects.
It can be seen from the meaning of insurance and financial management that the connotation of financial management is broader than insurance, and financial management includes insurance planning. Insurance is an important part of financial management, and insurance is the first step to successful financial management. Insurance keeps us from getting into trouble when disaster strikes.