Financial Insurance "Subsidize" Inflation

"You can't run Liu Xiang, but you must run. CPI " This is a ridicule in the market in 2007 when the consumer price index (CPI) increased by 5% in a single month. This year the CPI grew by 4.4% in October this year. Faced with rising price and inflation expectations, how to invest in financial management has become the most popular topic for ordinary people. Real estate, shares Precious metals and so on can be used as an anti inflation tool. It is necessary to resist inflation, including the bonus insurance and universal insurance financial management.

　　 Dividend insurance: anti inflation protagonist

Dividend insurance has become the protagonist of anti inflation in the insurance family. It is understood that the advantage of dividend insurance is that the income is linked to the interest rate at that time and the investment performance of the insurance company. Therefore, it can avoid or partially avoid the threat of inflation to the devaluation of the pension, so that the pension will be maintained or even increased.

However, there are also financial planners who point out that insurance is for protection, not for profit. Dividends mainly Investment In terms of interest rate related products, such as bonds, securities, and large infrastructure projects, it is decided that dividends will vary with interest rates. Generally speaking, the best annual rate of return is 5%-6%. After deducting the operating cost of the insurance company, the rate of return of the insured is 2.5%-3.5%. The purchase of dividend insurance is, to a certain extent, a "subsidy" to a certain extent.

　　 Universal insurance: long term ownership is the only way to deal with it.

Universal insurance also has the function of resisting inflation. However, universal insurance has many uncertainties and risks are higher than dividends. However, the universal insurance payment is flexible, the bottom is guaranteed, the top is not capped, and the extra high security is also favored by the public.

The income level of universal insurance is relatively transparent, and the insurance company announces the settlement rate of universal insurance products every month. At present, the universal insurance settlement interest rate is mostly between 3%-4%, but the investment income of universal insurance is not the total premium paid, but only part of the premium to enter the investment account. At the initial stage of insurance, the initial cost of universal insurance may be as high as 50%, with only a small percentage of investment in the investment account, so the initial 5 years' income is limited. It is worthwhile to have long-term insurance to cover all risks.

Investment linked insurance: protection is not always adequate.

In contrast, the traditional fixed rate insurance products focus on risk protection, compensation for illness or accidental death, but because of the fixed interest rate policy, it can not alleviate the inflationary pressure caused by rising prices.

An insurance company said that the investment risk of bonus insurance, universal insurance and investment linked insurance increased gradually. Although higher risk of investment linked insurance could be higher than inflation, but because of high risk and insufficient guarantee, it was not the first consideration.

　 Investment tips

Demonstrating interest rate is not equivalent to actual income.

Dividend insurance has been selling well since its inception. However, due to low yield, some of the mature products can only complete the task of "capital preservation", leaving behind a conservative image.

For example, the insurance company has launched some 5 year dividend insurance. When the time comes, many people find that the rate of return is less than 2%, which means that they put the funds in the insurance company for several years. These short-term bonus risks are not fully guaranteed.

Another problem that consumers often encounter is the fact that the actual dividend level of the product is different from the expectation, and the false interest rate is the actual income in the future. At present, dividend insurance products will be used to demonstrate interest rates when they are publicizing. The demonstration rates are divided into three levels: high, medium and low. According to the regulations of the CIRC, the high, medium and low rates of dividend insurance for the demonstration of interest rates should not be higher than 6%, 4.5% and 3% respectively.

The proceeds of dividend insurance mainly come from two aspects, one is the bottom income (that is, the fixed return part), the other is the dividend income. According to the regulations of the CIRC, insurance companies will allocate 70% of the total distributable earnings to the policyholders in each fiscal year.

These demonstrative interest rates only provide a reference index, do not represent the future definite income. In some years of good benefits, some insurance companies will prepare special dividends in addition to conventional sub IR, but even in poor years, they may not even pay dividends.

It is also worth noting that some dividend products promise to repay a certain percentage of premium annually, but consumers should see clearly that the return written in insurance products may refer to the premium paid in that year, not the original accumulated premium.

　 Tips

The insured amount should be checked regularly.

Most of the current insurance products belong to long-term insurance. From the expiration of insurance coverage or claims, it often takes 10 years, 20 years, or even longer. When the insured person thinks that the insured amount is enough, it will probably become inadequate after many years. In addition to inadequate planning, inflation erosion is also the main reason.

Assuming that inflation increases by 4% per year, 1 million yuan is only 500 thousand yuan after 18 years, compared with half of the purchasing power of insurance. To avoid inflation erosion, policyholders need to regularly inspect the policy size and adjust them in a timely manner.

In addition, universal insurance and investment linked insurance can allocate funds for security accounts and investment accounts, and policyholders can pay attention to whether there is room for added value of investment returns. If the current rate of return is low, the investment can be appropriately adjusted.