In TheLifeTank©️(American Life Insurance Guide) of the column"State Attorney General's 7 Tips for Investing in Insurance and Financial Management"As pointed out in the article,Lectures of "radical", "high pressure push", are the most common scenarios where insurance sales traps occur.

Policyholders or investors may be misled, choose an insurance plan that is not beneficial to them, or invest heavily in insurance products that are not what they originally wanted, thus taking unnecessary risks and suffering corresponding losses.

Through a column conversation with dollar insurance underwriter Ben, we put together a list ofIndex annuityIn the insurance industry,4 common sales pitch traps, to help policyholders understand the stories behind these traps.

Finally, we provide 3 questions and answers to help investors judge for themselves whether index annuity insurance products are really suitable for you.

/ Annuity Insurance Sales Trap Text /

Trap 1. "Guaranteed to earn 7%-9% per year"

This is a wrong statement.

If your bank fixed deposit interest, the annual yield of bond income is less than 4%, that is to say, the benchmark interest rate is not high, then no institution can guarantee that you can earn 7% or 9% per year.

This value is usually a literal figure calculated based on the overall income withdrawal, not the actual return.

There are different types of annuity insurance products, and under different types, there are different insurance products issued by different insurance companies.

Therefore, many terms and professional names can confuse us very much, and huashu usually takes advantage of this to confuse the functional concepts of different insurance accounts, or that the insurance brokers themselves are confused.

Try to avoid a sales pitch where you have to throw out a bunch of jargon, show a bunch of numbers, complicate a simple problem, and then act as a problem solver.

Excellent life insurance personnel,It can not only simplify the complex and avoid the complication of simple problems, but also use the language of simple life to directly hit the key points.

The actual accumulated cash value balance in your insurance account is the key to using insurance for wealth management or asset insurance.

(>>>Related reading:Knowledge Post｜Introduction to American Annuity Insurance Product Types Interest Rates and Comparison of Advantages and Disadvantages ）

Trap 2. "When the market is good, you make money, and when the market is down, you won't lose money"

This statement is half right.

After we opened an index annuity account, we put money into the account for financial management, but at this time, our money was not taken to the market for trading, and we directly bought and sold stocks.

In the annuity insurance contract, a calculation method will be written in black and white.

This calculation method will indicate that if the entire market rose in the year,The maximum number of pips you can earn.

What is the worst protection you can get if the market goes down that year.Typically, different annuity insurance types offer varying degrees of loss protection from 0% to -25%.

A common index annuity insurance account performance measure is to provide 0% annual income protection no matter how much the market falls in the year.

Therefore, it is correct to say that through index annuity financing, you can avoid the risk of market loss while at the same time,Enjoy some market benefits.

(>>>Related reading: Buffett: How to "Don't Lose Money"?What are the core functional selling points of asset insurance for hedging?)

Trap 3. "I have a customer statement here, and I earn 14% points without risk"

This is misleading out of context.

Let's start with the conclusion. Generally speaking, if you stretch to the average annual income, you may have an annualized income of 4% points.

Specifically, in a year when the market is particularly good - for example, a year when the stock index skyrockets, such as the end of 2019, the beginning of 2021 - your insurance account income may be 14% points in that year, but the next two years , after the stock index has retreated sharply, your insurance account income may be 0% for two consecutive years.

The average annual rate of return is about 4%.

Depositing money into such an insurance account is of course better than losing money in the direct investment market, but when faced with such sales tactics, policyholders should also consider several core indicators of an insurance account:

• What financial strategies do insurance companies use?
• Do insurance companies take the spread every year?If you take it, what is the annual spread?
• insurance accountAnnual cap ratehow many?

Your actual insurance income is affected by these additional indicators, and finding insurance account products with indicators that are beneficial to you will help you accumulate assets.

(>>>>Related reading: Evaluation｜The annual income is 13.75%, interpreting the two key issues of the insurance account statement of the policyholder )

Trap 4. "Get 15%, 25% bonus when you open an account, completely free"

This is misleading.

The truth of the matter is that if the insurance company gives you a free sum of money, it is obvious that the wool comes from the sheep, and they will earn it back from other benefits. For example, the annual cap rate of normal other insurance wealth management accounts is 6%, then This product may only be 5.5%.

Or to put it another way, the insurance penalty period could have ended early in 7 years, but this account has become 10 years.

ask yourself,If the decision was made because of the incentive of this bonus, and not for other essential reasons, you may have fallen into a sales trap.

There will be no pie in the world.There's always something you don't know, and the insurance company will make the cost back.

(>>>Related reading:Is the Bonus insurance product with premium bonus really worth it?What are the advantages and disadvantages?）

So should I buy indexed annuity insurance?

After sharing 4 common sales routines, let's go back to this question - thatShould I buy itIndexed annuity insurance?

To help policyholders answer this question, we have compiled 3 core questions and answers to help you make judgments.When you are hesitant about how to manage your money, or faced with all kinds of sales tactics, take a step back and ask yourself the following 3 questions:

• Ask yourself, did you prefer fixed-income financing in the past, such as bank fixed deposits, bonds, or Reits real estate rent collection?
• Are you unacceptable to lose your principal?
• When your investment and financial management lose money, you will feel uncomfortable and worried.You will want to say that you would rather earn less than have such worries and troubles.

If your answer is always: yes.

Congratulations, for you, a stable and conservative index-based annuity insurance is a relatively better financial product solution than bank fixed deposits and bonds.The next step is to cooperate with professional insurance personnel to choose a specific insurance product whose indicators are suitable for you. (End of full text)