In the modern financial market, insurance, as a risk transfer tool, provides an important guarantee for people's life and enterprise development. However, insurance is not flawless. It contains both considerable income potential and risks that cannot be ignored.
From the perspective of income, the guarantee function of insurance is undoubtedly its greatest advantage. For individuals, purchasing health insurance can provide financial support for unexpected diseases or major medical expenses, and avoid families from falling into financial difficulties due to high medical expenses. For example, in a long-term critical illness insurance, when the insured unfortunately suffers from a major disease as stipulated in the contract, he can get a considerable sum of insurance money at one time, which can be used to pay for treatment, make up for income loss and follow-up rehabilitation care. For enterprises, after purchasing property insurance and liability insurance, once the factory buildings and equipment are damaged due to natural disasters, or consumers claim compensation due to product liability, the insurance company will bear the corresponding liability for compensation according to the contract, help enterprises resume production and operation, and reduce economic losses caused by accidents.
The compulsory saving and wealth accumulation functions of insurance are gradually recognized by people. Taking dividend insurance and annuity insurance as examples, the insured is actually making a planned savings in the process of paying premiums. With the passage of time, we can not only get insurance protection, but also enjoy the dividend distribution generated by the operation of insurance companies, and realize the steady appreciation of assets. Annuity insurance can provide stable cash flow for the elderly and guarantee the quality of their later life.
However, insurance is not without risks. First of all, the terms of insurance products are complex, and it may be difficult for ordinary consumers to fully understand the details and restrictions when purchasing. The scope of liability exemption, waiting period, hesitation period, cash value and other factors in the clause may affect the final protection and income of the insured. For example, some health insurance may have exemption clauses for past diseases and medical expenses in specific areas. If the insured fails to read these clauses carefully when making claims, he may suffer losses because he does not meet the conditions for making claims.
Secondly, the operational risks of insurance companies will also have an impact on policy holders. If the insurance company is in financial crisis due to investment mistakes, insufficient liquidity or poor management, it may not be able to pay the insurance premium in full and on time, resulting in the failure of the insured's protection. In addition, the competition in the insurance market is fierce. In order to pursue performance, some insurance agents may exaggerate the benefits of insurance products and induce consumers to buy insurance products that are not suitable for their needs, making consumers unable to obtain the expected protection effect during the insurance period.
Therefore, consumers need to be rational and cautious when buying insurance. We should fully understand our own risk situation and needs, read the insurance clauses carefully, and make a comprehensive assessment of the benefits and risks of insurance products. At the same time, choose an insurance company with good reputation and stable operation to avoid blindly following the trend and impulse buying. Only in this way can we effectively avoid potential risks while enjoying the benefits brought by insurance, so that insurance can truly become a solid shield to protect wealth and life.
