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ChatGPT isAn artificial intelligence program developed by OpenAI, a well-known artificial intelligence research laboratory, launched in November 2022.The program uses a large language model based on the GPT-11 architecture and is trained through reinforcement learning, interacting in a conversational manner, and has recently become popular on the Internet.
AI What does this have to do with life insurance?BuyAmerican Life InsuranceAs a financial tool, it is a common choice.Usually before choosing an insurance company and insurance products, we often hope to understand the advantages and disadvantages of cash value (financial management) life insurance through a trusted third party.
In the past, this third party, who fulfilled the "trust" condition, usually had a "fiduciary/Fiduciary" responsibilityLife Insurance Financial Advisor; And the emergence of artificial intelligence may open up a new independent third-party trust field, giving consumers and investors more choices.
The following is a transcript (edited) of a conversation between TheLifeTank.com and ChatGPT.
TheLifeTank: What are the advantages of cash value life insurance?
-ChatGPT:Cash value life insurance is a financial product that combines life insurance and investment elements.It mainly increases the cash value of the policy by investing a portion of the premium on investment products after the policy takes effect.
It mainly has the following advantages:
- High return on investment:Some of the insurance premiums of cash value life insurance will be invested in the insurance company's main asset portfolio, securities, funds, real estate, gold, cash and other investment products, so it may generate a higher comprehensive investment rate of return.
- High flexibility:Cash value life insurance allows insurance funds to be withdrawn at any time, and policyholders can decide whether to withdraw insurance funds according to their own needs.
- Strong risk management ability:The insurance funds of cash value life insurance can be invested in a variety of investment products, some insurance products provideFund "0" lossAsset insurance, so while diversifying investment, it can also reduce capital risk.
- Provide tax benefits:Cash value life insurance is considered a tangible asset and enjoys tax benefits in the United States. Insurance companies can grant tax exemptions for investment income, and policyholders can reduce tax payments.
- Combination of protection and investment:Cash value life insurance can provide protection and investment at the same time, bringing more wealth management opportunities to policyholders.
(>>>Related reading:If you don’t lose money, you win. Which type of asset insurance guarantees you won’t lose money in a bear market?)
TheLifeTank: What Are the Disadvantages of Cash Value Life Insurance?
-ChatGPT:Cash value life insurance also has some disadvantages, mainly in the following points:
- higher insurance premiums The insurance premium of cash value life insurance is usually higher than that of ordinary life insurance, because the insurance company needs to invest the insurance premium other than the insurance cost into financial products.
- Unstable investment income Since the investment part of cash value life insurance is invested in the financial market, the instability of investment income depends on the performance of the financial market. Sometimes the market performance is not good, and the investment income will also be affected.
- difficult to understand Cash value life insurance is more complicated and requires the insured to have a certain understanding and research on insurance and investment, so it is not suitable for everyone.
- with certain restrictions Although cash value life insurance is flexible, the insurance company will have restrictions on the frequency and amount of premium payment, and if the insurer terminates the insurance contract prematurely, it may faceSurrender penalty.
(>>>Related reading:What is the Surrender Penalty?When is there no penalty for surrendering the policy? )
(>>>Related reading:Where did our premiums go?How do insurance companies invest?)
Article summary
Through the dialogue with the third-party ChatGPT launched by OpenAI, we can understand the corresponding advantages and disadvantages of American cash value life insurance financing from the perspective of artificial intelligence.
At the same time, ChatGPT also shows that you should choose large companies with good reputation and stable funds.When choosing an insurance product, you should fully understand the rate of return and risk of the insurance product, and consider your own needs and economic conditions.
Finally, the decision to purchase insurance and financial management depends on the actual needs of the individual. The assistance of artificial intelligence is a plus item. It is also recommended to carry out detailed financial planning and risk assessment with the assistance of professional life insurance financial consultants. (full text)
