What is the function and significance of life insurance loans?

The loan function of life insurance is more to help fixed assets achieve liquidity.

This is very useful for some large insurance policies, which not only enlarges the value, but also realizes the realization of fixed assets and increases the liquidity of wealth.

However, at present, the domestic life insurance, the general loan interest rate is moderate, different insurance companies, but basically maintained at around 7%-8%, then it depends on whether the money you lend can exceed this value.

This use efficiency is divided into different situations, mainly including liquidity. If you can't get lower money, you can find investment products with higher returns.

liquidity

It's easy to explain. When money is lent, it is liquid. Whether it is a business or a family, the most important thing is the mobility of wealth. Therefore, if liquidity is tight, the interest generated by the loan may be ignored.

Can't get lower money

As far as the loan interest rate of 20 19 1 is concerned, this interest rate is moderate for both individuals and enterprises, and even for enterprises, it is cheap. Therefore, if you can get a loan from the insurance policy, of course you must get a loan.

Looking for investment products with better returns

Of course, this investment product may be itself or an enterprise. This is an arbitrage. What banks have been doing is to convert low-cost funds into high-yield funds. Therefore, if life insurance loans are used well, it can increase leverage and expand family income.