In 2022, the U.S. stock market has experienced a big ups and downs.
The former Internet celebrity fund manager "Sister Wood", the total size of its Ark fund has shrunk by 80% at most during the year, and the total investment loss in 2022 is close to 67%; the virtual currency market has plummeted, with FTX, Luna, Celsius, Voyager Various scandals broke out one after another, such as bank runs, bankruptcy, and running away, causing relevant investors to suffer serious losses.
提供Fund Protection FunctionOfIndex insuranceProducts will shine in 2022.In this article, TheLifeTank©️ According to Life Insurance Financial AdvisorHeather Xiong CFP©️An annual statement document is provided to educate and explain the annual minimum guaranteed rate of return in index insurance accounts.
What is the fund protection function of the index insurance account?
The contract documents of index insurance products will state that even when the stock market falls (as shown in the red line in the figure below), the insurance company will promise that the annual cash value income of a specific index account will not be less than 0%.
This 0% is the basic underpinning protection function of index insurance.In the worst case, a "protected floor" rate of return can be given to the policy account.This "protective bottom", we call it Floor.
The policyholder injects funds into this type of index account and is protected by Floor, so as to achieve the goal of asset preservation and steady appreciation.
Annual posting list: the minimum annual rate of return that is actually greater than 0%
We select an index insurance account statement sent in February 2023 to give a specific educational explanation of this function.
Article summary
In this column, we use an index insurance account annual statement document to explain the function of "Floor" - fund backing protection.
In the US index insurance market, majorBrand mainstream insurance company, all provide policyholders with "minimum guaranteed annual income" insurance products, and the performance and indicators of these index insurance products are also different.
During the insurance application process, the policyholder canProfessional Life Insurance Financial AdvisorWith the assistance of the company, through the sharing of professional experience, combined with the actual assets of their families, they can purchase insurance account products that meet their own needs. (full text)