In the academic community, it is said that banking, securities, and insurance are the three horses driving the financial industry.

Banks, while earning a modest interest, provide the convenience of having money readily available; securities, with a larger amount of idle funds, take a gamble to earn higher profits, but the risks are self-borne; insurance, under the premise of having the ability, time, and opportunity, prepares in advance, ensuring that your money does not suffer significant losses when life and health risks occur, and guarantees the quality of your future life.

However, in China, banks and securities are highly sought after, while insurance has always been in an awkward position.

With a person, you don't need to tell them, "Put your money in the bank," they naturally deposit it there; with another person, you don't need to tell them, "Invest your money in the stock market," they naturally rush in with tens of thousands of dollars; with yet another person, when you suggest, "Buy some insurance," they will have a hundred, a thousand reasons to refuse you!

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Why? Because they do not understand the differences among banks, securities, and insurance within the financial sector.

There is a joke in the industry about the relationship of the "three horses": Insurance is like a mother, always nagging about life and death, illness, and old age, but will definitely give money and stay by your side in critical moments; banks are like a spouse, "Husband and wife are birds of the same forest, flying separately when disaster strikes"; stocks are like a lover, playing with you when you have money, sometimes making your heart race, sometimes raising your blood pressure, until you run out of money.

Banks, insurance, and securities are the three horses of the financial industry. For the country and society, they all serve the functions of financing and investment, but from the perspective of individual customers, there are many differences. Banks are financing institutions, simple, safe, and negative-yield financial tools with the best liquidity; securities offer higher returns but also come with greater risk; insurance is primarily for risk avoidance. In theory, the organic combination of the three can reduce risks and increase overall income levels.

I. The Difference Between Insurance and Banks

Let's tell a story: A and B each have 100,000 dollars. A is very wise, listened to the insurance agent's advice, and put 90,000 dollars in the bank and 10,000 dollars in the insurance company. B put all the money in the bank without making any arrangements.

Later, both A and B were diagnosed with cancer at the same time, requiring 500,000 dollars for treatment. Because A had previously placed 10,000 dollars with the insurance company, they received a claim of 500,000 dollars from the insurer. B's 100,000 dollars in the bank became zero, and 400,000 dollars turned into debt. After recovery, A's assets were 90,000 dollars, and B's assets were negative 400,000 dollars, a difference of 490,000 dollars!This is a very simple truth: many people reject something without much thought, but when such impulsive actions lead to adverse consequences, they can only regret it.

II. The Difference Between Insurance and Securities

Today, investing 1 million and 990,000 in stocks yields roughly the same results. However, when you place 10,000 with an insurance company, compared to not purchasing insurance at all, the condition of your entire assets changes. First and foremost, insurance protects the money you have already earned before ensuring that you can earn the money you should in the future. Insurance is not about spending your money; it's about helping you make money!

When you buy insurance, a portion of the profits from your other investments each year should be allocated to the insurance sector. This money is only temporarily locked up, but it is ultimately yours; not to mention that in the event of a serious illness or accident, not only is this money yours, but the insurance company's money is also at your disposal!

Looking at the current situation, relying solely on the money saved in the bank and the funds paid out by national social security is not enough to withstand the greater risks that may come at any time. If the money saved in the bank is not substantial, it is undoubtedly a drop in the ocean when faced with an accident. However, if you have insurance, the insurance payout in the event of an accident can be tens or even hundreds of times the premium paid.

Insurance, in essence, provides a safety net for both low and middle-income earners and high-income individuals. Achieving a safe and happy life requires being prepared for potential dangers, and buying insurance is one of the best ways to do so: spending a relatively small amount of money now to secure significant protection in the future!