I want to buy insurance, but I don't know why Please give me a reason to buy insurance.

Why should we buy insurance? What can it bring us?

Insurance has many functions, the most important of which gives us four reasons: people will inevitably encounter birth, old age, illness, death and disability in their lives, among which death and disability are the most worrying. When a family suddenly faces one of death, disease and disability, presumably only those who have experienced it know the bitterness, pain, helplessness and helplessness best. Therefore, people are looking for a way to make their families fully prepared for these disasters. So there is insurance. Therefore, buying insurance is a very responsible behavior for yourself and your family. I'm worried that if something happens to me and I get sick, I'll add extra financial burden to my family, or I'll leave enough living expenses for my family to rely on in the future.

First, transfer risks and provide protection. The more developed modern society is, the greater the risk we face. The risk is unknown. We don't know when it will happen, whether it will happen or not, and how much it will lose. But when we participate in insurance and pay a certain premium, we can transfer this possibility of bearing losses to the insurance company. In the event of an insurance accident, the insurance company will make economic compensation for our losses or the losses caused by us to others. Therefore, after the insurance accident, the insured can get funds in time to transfer risks and return to normal life as soon as possible.

Second, insurance is an investment. Some types of insurance, especially old-age insurance, are self-help. If an insurance accident occurs during the insurance period, you can get compensation. If there are no accidents, you can get insurance money from the insurance company every month after reaching a certain age. This part of the insurance premium will exceed the sum of the premium paid by us and the interest income from premium appreciation over a period of time. Some types of insurance will also pay dividends from insurance companies to the insured. This is because in order to ensure the stable operation of the company and pay the insurance premium in full and on time, the insurance company must concentrate and effectively invest the premium collected to enhance its financial strength, and dividend is the return to the insured. The insurance premium obtained by participating in insurance will never fluctuate like stock investment, coin investment and stamp products investment, but a fixed amount determined according to the insurance contract and will not change due to market changes. This kind of income stability can make the insured know fairly well and facilitate the reasonable arrangement of funds. Income tax and interest tax are not levied on the compensation or monthly payment obtained by participating in insurance, and there is no insurance premium inheritance tax internationally. This is where insurance investment is superior to bank savings and buying corporate bonds.

Third, insurance has the function of balancing consumption. Many high-income people have no intention of spending, and the biggest balanced consumption is to buy a house with a loan. With a house, the pressure of life is relatively small, so they relax their financial arrangements, which easily leads to a passive situation of "knowing less when spending money", especially after the reform of the pension, medical care and education systems, when we can't work, our income will be much worse than before, and medical expenses will be reimbursed nowhere or incompletely. Even in nine-year compulsory education, it costs a lot of money to send children to a school with satisfactory software and hardware, and the trend of university merger is becoming more and more obvious. However, China's traditional concept determines that parents can't throw their children out of the house when they are 18 years old, so children's education will be a big expense. Insurance can limit people's consumption and act as a reservoir. Because once we participate in insurance, we will be forced to pay part of our income on time. Otherwise, if you surrender midway, the insurance company will deduct the handling fee and guarantee premium, which is not worth the loss. At the same time, taking out medical insurance for yourself can pool the usual idle funds to pay for serious illness: taking out life insurance for children and forming an insurance fund. Insurance companies can pay a sum of money when children go to middle school, go to college, get married and have children, thus reducing the pressure on us to pay the necessary expenses. This function of adjusting surplus and deficiency and balancing consumption also makes the insurance industry more and more developed.

Fourth, ensure the stability of life and give us a sense of psychological security. Insurance, as its name implies, has the function of ensuring the stability of life and giving us a sense of psychological security, which can alleviate the tension, fear and worry brought by modern competition. Therefore, in addition to food, clothing, housing and transportation, if conditions permit, you should also buy a certain amount of insurance for yourself and your loved ones, so that no matter what happens in the future, you will have a response. Living in a carefree state of mind will make it easier for us to work and enjoy life more fully.