What are the advantages and disadvantages of buying insurance

Now people's living conditions are getting better and better, so they will pay more attention to their quality of life and safety and health issues, so the insurance industry has become more and more popular. However, there are still many people who have some doubts about the advantages and disadvantages of buying insurance. So let's analyze and introduce in detail what are the advantages and disadvantages of buying insurance.

Benefits of buying insurance: sharing accident losses and making family finances stable.

Disadvantages of buying insurance: premium burden, annual and monthly premium payments form long-term debt for the family. Surrendering the policy may result in financial losses. Investment returns may not be as good as fixed deposits. You can only receive the premium if the conditions are met.

The original meaning of insurance is safety and reliability; later it was extended to become a protection mechanism and a tool for planning one’s finances. It is a basic means of risk management under market economy conditions and an important pillar of the financial system and social security system.

Insurance refers to the commercial insurance behavior in which the policyholder pays premiums to the insurer in accordance with the contract, and the insurer bears the liability for paying insurance compensation for property losses caused by accidents that may occur as stipulated in the contract, or when the insured dies, becomes disabled, becomes ill, or reaches the age, term, etc. stipulated in the contract.

From an economic perspective, insurance is a financial arrangement for sharing the losses caused by accidents; from a legal perspective, insurance is a contractual act, a contractual arrangement in which one party agrees to compensate the other party for the losses; from a social perspective, insurance is an important part of the social and economic security system and a "sophisticated stabilizer" of social production and social life; from a risk management perspective, insurance is a method of risk management.

If we pay attention to the knowledge and understanding of these common sense, then we can decide whether we should buy insurance, or what type of insurance we should buy based on our own physical condition and family situation. In fact, this is also more beneficial for life and security. Therefore, everyone should have a scientific understanding of these issues.