First of all, we should understand that insurance can be roughly divided into two categories according to its essence: consumer insurance and return insurance.
We should keep these two types in mind, so that no matter what kind of miscellaneous risks are recommended to you by others, you will be able to make a clear analysis of whether it is appropriate or not!
100 apprentices came to a five-star hotel to learn cooking. They had to study hard for ten years before they could work independently. The apprentice's salary is not high, only a few hundred yuan a year, but the tableware in the five-star hotel is very expensive, a plate costs 1000 yuan. If an apprentice breaks a plate carelessly, he will not only lose his fortune to compensate for the 1000 yuan, but may also be expelled from his job and study. So the apprentices were very careful, but every year someone broke the plate. This year, the hotel came to a smart financial, he put forward a plan: if each apprentice is willing to pay a little money every year, and put the money together, no matter who breaks the plate, he will use the money to compensate for the plate, and the apprentices will not be punished any more. Everyone thinks this plan is very good, and they are willing to spend a little money to buy peace of mind. How much does it cost? "How many dishes do you break in a year We thought about it for a while and answered, "about four.". So if you need to compensate for four dishes in a year, you need to pay 40 yuan per person. At this time, the financial department suggested that you hire a broker to help you manage the money in case you run away. According to the market situation at that time, it would cost 600 yuan to hire a broker a year, and 400 yuan (booking fee) to rent an office for the broker. The cost of this 1000 yuan is 10 yuan for each apprentice. In this way, each apprentice can only pay 40 yuan (security cost) + 10 yuan (fee) = 50 yuan a year, so that he can break the plate and have admiration, so that he can not be expelled. (the birth of short-term consumer insurance) In a flash of time, more than half a year later, no one broke the plate. At this time, a person who is most cautious and careful when doing things usually thinks: I am the least likely to break the plate. I lose 50 yuan this year and 500 yuan in ten years! No, I have to talk to the finance department. This person said to the finance department, "that's easy. If you don't want to pay it, you don't have to pay it. Anyway, you should bear the risk if something happens." If I break the plate, I can't afford to pay. Ask Finance: "there is no way to have the best of both worlds?" Smart financial brain turns. Since he wants to get back the principal, I have to charge him more money, invest with the extra money, and earn his principal with the investment income. Then the current market yield is about 12.4% (predetermined interest rate, domestic predetermined interest rate is generally no more than 2.5%). Through calculation, if you want to get back the principal after 10 years, you can charge 40 (guarantee cost) + 10 (fee) + 50 (investment cost) = 100 yuan. So the smart financial man said, "I believe you won't break the plate, but in case no one can guarantee it. Otherwise, you can pay a deposit of 100 yuan a year (two risks insurance). If you break the plate, the deposit will be confiscated. If you haven't broken it for ten years, I will pay you back 1000 yuan. If you don't break your plate in ten years, you should be careful if you don't break your plate in ten years! "But we have to make an agreement," said the finance department. "Since you have paid the deposit by 100, you have to pay it for ten years. You can't get the deposit back in the middle of the year, otherwise you will be considered as breach of contract." Careful people think that they will not lose, on a promise: "no problem!" (birth of endowment insurance) This year, the careful man did not break the plate. Seeing that most of the other workers lost 50 yuan, he could not help feeling proud and told his friends his plan. Soon it spread ten to one hundred, and everyone felt that they were not so unlucky. It happened to be the person who would break the plate, so they asked for a deposit. The financial department was also very happy, so he collected a deposit of 10000 yuan the next year. The financial department left 4000 yuan to pay for the plate, 1000 yuan for expenses and 5000 yuan for investment. This year, the market was very good, with the return on investment rising to 15% (interest margin, predetermined interest rate of 12.4%), and this year, the apprentices broke only three plates (dead profit), and the employed brokers only spent 500 (fee differential). By the end of the year, more than one plate was made. When he heard of this, he found the financial man and said, "it's unfair that you didn't give us any money when you used our money to make so much money." The financial man thought for a while and said, "I make money by my own brain and physical strength, and I also have my credit. How about this? If you have more nodes, 150 yuan per year (bonus insurance), ten years later, I will not only return you 1500 yuan, but also give you 70% of the profit each year. How about that? " Careful people listen, think this is more cost-effective, so they immediately paid 150, go back to encourage other workers to make more. This year coincided with the sharp rise in the stock market and made a lot of financial profits. At the end of the year, when we looked at our accounts, we didn't spend 50 yuan as we did last year. On the contrary, we also had a few more dollars in dividends. Therefore, the financial department encouraged everyone to say, "the market will be very good next year. You'd better give me all the money you don't need urgently. In addition to deducting 40 yuan for the security cost of breaking dishes and 10 yuan for administrative expenses. I will help you with the rest of the extra money. I will settle the interest for you every month, and it is a rolling interest. "But if we pay so much money, what should we do in case of emergency?" Someone asked. The accountant said, "it doesn't matter. You can take out the money at any time when it is in urgent need." "What do you do if you lose your investment?" Someone asked again, worried. "Don't worry. I promise you that the monthly interest rate will not be less than 0%. And the annual interest rate must be more than 2.5% ". As soon as people figure out, how can we understand the operation of investment? The financial department is a smart man, so let him rest assured! So all of you 150 and his 180 were handed over. (all risks) At the end of the third year, there were more surpluses in our accounts. Some people felt that they had made a lot of money, but others felt that they had not made the money they wanted. They also found smart finance. The financial department said: the projects with high income are of course, but the risks are also great. If you are not afraid of risks, I can help you to invest in these projects. In this way, I will help you set up several investment accounts. Among them, there are high-risk and low-risk ones. You can choose the investment account according to your preference. OK, I'll do it To help you operate, I only charge you a little management fee based on a few percent of the account value every year, and the rest of the income belongs to you. But in case of loss, please don't blame me (risk linked insurance) as long as the deposit is over five years, I don't even deduct the handling fee. People feel that this can make more money, so they put all the money to the financial department. At this time, a new apprentice came to explain to him the attraction of the project and persuade him to take more money. After hearing this, the new apprentice finally got to the bottom of the story and said, "my family is in trouble. I can only pay 50 yuan for the plate.". Don't make such a high profit. "
From the story, we can see that the premium is composed of three parts: guarantee cost + expense + investment money = premium.
Among them, no matter what you buy is consumer insurance, or dividend, universal, investment linked insurance, the annual insurance costs and expenses are consumed. The reason why the insurance company can return the principal, pay dividends and pay interest is to take the money of customers to invest, and then distribute the investment income to the customers. And because insurance companies are unlikely to invest too aggressively. So the investment returns of insurance companies are relatively low.
So suggestions: try to buy the insurance of consumer protection function, so that you can buy high protection with very low price. Then invest the saved money in other investment projects that can bring higher returns, such as bonds, fund fixed investment, etc. This will make your money more efficient.
In the above story, with the advancement of the story, people's focus is changing, and they begin to pay attention to the protection. With the development of the matter, people's focus is more and more on the benefits and ignore the essence of insurance. Therefore, we still suggest that when we buy insurance, we should not think too much about the return on capital, but should focus on the nature of insurance protection. Personal risk aversion should be the original intention of buying insurance.