What is "savings insurance"? -Traditional Chinese
"Savings insurance" is an insurance product designed to help individuals and families save and invest to achieve long-term financial goals. It usually combines insurance, savings and investment functions to provide a compound financial solution. The types and terms of this insurance vary from country to country, but they are commonly structured as long-term contracts with regular payments, in which part of the premium is used to pay for protection and part is invested for growth.
This article will delve into the operation, types, advantages and risks of "savings insurance" to help readers better understand the operation and application of this financial product. If you are considering investing in savings insurance, or want to learn more about financial planning, this article will be useful.
Although savings insurance seems sound, its yield is often lower than inflation, and the termination fee may be lower than the principal invested. If it is considered an estate planning tool, its benefits need to be carefully evaluated. It is recommended that you consult a professional financial advisor to formulate a more complete estate planning plan to ensure that your property can be effectively passed on to the next generation.
Although savings insurance has the word "savings" in it, its essence is still insurance, providing protection function. Compared with traditional life insurance, savings insurance has higher premiums but narrower coverage, focusing mainly on savings and investment. Therefore, if you are looking for high protection, traditional life insurance is more suitable; if you value savings and investment, savings insurance can be an option.
How much will you lose if you cancel the savings insurance contract? This depends on the terms of your policy and the time of termination. Generally speaking, the earlier the contract is terminated, the greater the loss. Therefore, before purchasing insurance, be sure to read the policy terms carefully and evaluate your own financial situation to avoid unnecessary losses due to termination of the contract.
Whether inheritance tax is payable on the income from endowment insurance is a question that many people are concerned about. According to current regulations, the death benefit of a savings insurance policy is considered insurance money, and the insurance money is a tax-exempt item and therefore does not need to pay inheritance tax. However, if the value of the endowment insurance policy exceeds a certain amount, gift tax may be due. It is recommended that you consult professionals to understand your own situation and avoid unnecessary tax burdens.
Savings insurance is often called "life and death insurance", but this is just an appearance. In fact, the protection function of savings insurance is limited, and the return on investment is often not as good as expected. If you are looking for protection, it is recommended to choose specialized insurance products; if you want to invest in financial management, you should choose more flexible investment tools. Don’t be fooled by the saying “life or death is a risk”. Only by rationally evaluating your own needs can you make a wise choice.
Whether the beneficiary of a savings insurance needs to pay taxes depends on the nature of the insurance money. If it is a death insurance benefit, it is tax-free; but if it is a survival insurance benefit, income tax must be paid in accordance with the income tax law. Therefore, be sure to understand the insurance terms in detail before purchasing insurance and consult professionals to ensure your own rights and interests.
