Advantages and disadvantages of saving money in banks
Savings is a form of safe and profitable investment. Depositors can easily withdraw money at any time. If the withdrawal is not on time, customers will not receive the original interest rate. Savings also have a simple process, can be deposited at the counter or online, very convenient.
However, savings interest rates are often lower than other forms of investment such as stocks or real estate. Therefore, the potential for profit from bank savings may be limited.
Advantages and disadvantages of buying life insurance
Buying insurance is a way to prevent risks. With life insurance, protecting financial and health safety is the top priority. When the insurance contract is effective, the buyer will enjoy protection benefits that are many times more valuable than the insurance premium to be paid during the insurance term (usually from 5 to 20 years).
You should carefully consider between buying insurance and saving to suit your family's financial goals. (Illustration photo)
In addition, insurance premiums are often divided over a long period of time so buyers are not pressured to transfer money at once.
However, customers may encounter problems when purchasing life insurance due to the limited knowledge, skills and responsibilities of consultants. On the other hand, many insurance products have exclusion clauses, which pose many risks if not clearly understood and violated.
With 20 million VND, should I save or buy insurance?
Buying life insurance or saving in the bank depends on each individual's financial goals. Customers need to determine their own and their family's needs to make appropriate decisions.
If you want to save money, invest profitably and have a reserve fund, you can choose long-term savings. Bank savings only do the right function of keeping money and generating profit for customers.
But if you want to prevent risks and uncertainties in the future, customers can buy insurance. Life insurance does not necessarily bring high returns but focuses on protecting the family's finances.
In addition, customers can consider the solution of “not putting all eggs in one basket”, so they should divide this amount in half. 10 million is used to buy insurance for spouses or children with a short term of 5-10 years. The remaining 10 million is put into short-term savings. When a large amount is saved, they can think about buying gold to avoid currency devaluation.
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