In the context of the constantly evolving economy and increasingly complex investment market, understanding investment insurance is crucial to ensure the financial safety of oneself and one’s family. So, what is investment insurance? Should you consider purchasing investment insurance? Follow this article to find the answers.
1. What is Investment Insurance?
Investment insurance is a type of insurance product designed to both protect against financial risks and combine investment activities to increase accumulated assets. The distinguishing feature of this product compared to conventional insurance products is that the premium is divided into two separate parts: insurance and investment. With this investment insurance product, customers have the option to focus more on either insurance or investment, depending on their individual goals. If a customer is more interested in financial protection, they can choose to pay a higher premium for insurance compared to investment, and vice versa.
2. Characteristics of Investment Insurance
Key features of investment insurance include:
Premiums are split into two separate parts: insurance and investment. Customers can choose to focus on either part depending on their personal objectives. After deducting related fees, customers receive the entire investment results from the insurance fund. Throughout the effective period of the insurance contract, policyholders are financially protected in case of predefined risks, following the terms and conditions of the insurance contract. High transparency: Investment fees and fund profits are clearly disclosed to customers. Flexibility: Policyholders can independently and flexibly determine the premium amount, insurance coverage, and investment amount to agree upon and sign the contract. Additionally, they can change their investment allocation during the insurance period, depending on the provisions of each insurance contract. Risk control: Through investing in suitable investment funds, customers can control investment risks. However, customers should understand that investment always comes with risks, and no investment guarantees returns or profits. The financial market is highly volatile, and the value of investments may change over time, potentially resulting in losses or a decrease in value. Customers need to accept these risks and carefully consider before deciding to invest in investment funds or other financial products.
3. Benefits of Investment Insurance
3.1. Health Risk Insurance Benefits
If customers encounter health risks specified in the insurance contract, they will receive compensation to mitigate the financial losses. Health risk insurance benefits may include death, illness, accidents, loss of labor capacity, and other risks, depending on the specific insurance product. Additionally, customers will be supported with the costs of inpatient, outpatient, dental care, maternity, and other medical expenses.
3.2. Investment Benefits
Regarding investment benefits, there are certain differences between unit-linked insurance and linked insurance. With unit-linked insurance, participants bear all risks from the investment activities of the linked fund and will receive the entire investment results. In contrast, linked insurance participants will receive the entire investment results from the linked fund and be guaranteed a minimum committed interest rate specified in the insurance contract. Apart from receiving the entire investment results (with or without a guaranteed minimum), participants in linked insurance also enjoy regular and special bonuses when participating regularly over an extended period. However, these bonus amounts will vary depending on the specific product and accompanying conditions.
4. Should You Purchase Investment Insurance?
From the information provided, it is evident that investment insurance is an optimal choice, offering both protection and the opportunity to increase financial assets. Participants in investment-linked insurance are protected with a maximum compensation level and can flexibly invest based on their financial situation and future wealth-building goals. When purchasing investment insurance, policyholders do not need to manage investments themselves or monitor the financial market. Investment management is handled by experienced companies contracted by the insurance company, providing policyholders with peace of mind.
Conclusion
This article has provided a comprehensive overview of what investment insurance is. Hopefully, you now have a better understanding of investment insurance and have addressed any concerns about whether to choose this product. If you have questions about the benefits, target audience, or methods of paying for investment insurance, do not hesitate to contact Generali for assistance and advice on choosing the most suitable product for yourself!
Cre: Baloon/informedinvestor.co
