Hong Kong tycoon Li Ka-shing said, "Other people say I am very rich and have a lot of wealth. In fact, the wealth that really belongs to me personally is to buy enough insurance for myself and my loved ones." Many people wonder why a rich man like Li Ka-shing has to buy insurance. Is his wealth not enough to protect against risks? First of all, rich people know better than poor people that money needs to be invested and to pursue ROI. Rich people will never put money in their hands (i.e. hold cash) or put it all in the bank (due to the low interest rate on deposits), and should use most of it for other investments: e.g. stocks, businesses, bonds, etc. However, it is difficult to raise money on hand when there is a risk to yourself or your family. So in order to have sufficient financial protection in the event of an accident, you should allocate a portion of your wealth to life insurance. This will relieve you of the worry of investing. This is also often referred to as the rule of thirds: banks, stocks, and insurance, the three major directions of family investment. Insurance is also a good way to avoid taxes. You can take out a large life insurance policy for yourself before you die, so that part of your wealth can be inherited by your children tax-free. Isn't it your wish to be rich for three generations, to continue your business forever, and to avoid inheritance tax? The purpose of buying insurance is of course to provide protection, such as retirement, medical care and accidental injury. However, according to insurance experts, different income groups focus on different purposes. Low-income people buy insurance for protection, middle-income people buy insurance for financial management, and high-income people buy insurance for asset protection. In fact, the rich have more reasons to buy insurance. First, the strength of the embodiment of the business needs of Xiamen's largest individual policy is the annual premium of 5 million yuan, is the fourth largest policy in the country. Insurance people analyze, huge policy, often for the purpose of protecting the individual, such as business needs. There is an annual turnover of up to more than nine hundred million dollars of enterprises, a new overseas customer asked for proof of credit. The client said that the boss's personal life insurance policy is a kind of creditworthiness, but the usual threshold is "10 million dollars of coverage, annual premiums to more than 200,000 U.S. dollars." To meet the client's requirements, the owner took out a million-dollar policy. A large policy is a symbol of dignity, status and wealth. Professionals, the insurance company for premiums up to 200,000 dollars or more of large policies, the review is very strict, in addition to the fear of fraud concerns, usually the insurance company will require customers to insure to the best of their ability. For example, the annual premium is 10%-20% of the annual income, and the insured amount is five times the annual income is appropriate. Therefore, if you are holding a huge policy from a responsible insurance company, it is undoubtedly a trustworthy business card, symbolizing stature and identity. Second, the preservation of assets, against human debt Taiwan's richest man Tsai Wan Lin behind only paid 600 million New Taiwan dollars in inheritance tax, tax savings of the primary credit is his insurance policy. He bought 6.2 billion dollars of insurance alone, due to the insurance tax exemption, Tsai Wanlin's property to "safe" to the heirs. There is no inheritance tax in mainland China, but there are many people who save for a rainy day. Some rich people through the purchase of insurance designated beneficiaries. Arrangements are made in advance for the inheritance of property. More realistically, insurance is used as a shield against favors. Jinjiang, a businessman, suffering from friends looking for him three days to borrow money, lending out money, nine times out of ten is no return. Borrowing is also offensive, not borrowing is also offensive. One day by the inspiration of the insurance staff, a sudden enlightenment, so the remaining money to buy insurance. Now, when someone came to the door to borrow money, the old man said with a strong voice: "Sorry, why didn't you come earlier. My money bought insurance earlier, insurance is to withdraw money in advance. If you don't believe me, go to the insurance company and ask for advice. Previously, the money earned from doing business to extract a large piece of the money to be given to others, for "bad debt preparation", now the safety of these money is guaranteed, and the need for turnover, but also to the policy to the insurance company loans, the businessman on their own decision-making is very proud. Third, to learn from the culture, exercise the next generation of modern entrepreneurs are increasingly aware of risk aversion. The above two alternative reasons, in the final analysis, are related to risk awareness and involve direct financial benefits. However, there are also in order to learn management, or training of the next generation and insurance ties. The owner of a major entrepreneur bought insurance because he recognized that the competitive environment of insurance companies is fierce and that it would be beneficial to his daughter's exercise and growth. Moreover, he appreciated the company's culture and management mechanism so much that he asked his daughter to integrate into the group and eat up the company's management methods. There is also a small business owner, through daily contact, secretly learn the insurance company's incentive mechanism, applied to their own enterprises, the results not only retain skilled employees, but also attracted the neighboring enterprises of the technical staff, in the "war of recruitment" in the easy to win, the scale of the enterprise to expand, and ride the famous brand of outsourcing ship.
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