Is insurance pyramid scheme?

? No, insurance emphasizes risk, responsibility for family responsibilities, embodiment of love and positive signal. Insurance plays the role of love in daily life. Because of care and love, this care will be guarded in the form of an insurance policy, which is a step to greatly promote family harmony.

Although the marketing model of insurance is similar to pyramid scheme, insurance is definitely not pyramid scheme!

MLM: This is a marketing strategy to achieve sales through interpersonal communication, which is especially effective in places with vast territory and low population density, so MLM is very popular in North America and Oceania.

Insurance: refers to the insurance premium paid by the insured to the insurer according to the contract, and the insurer is liable for the property losses caused by possible accidents as stipulated in the contract. Insurance is usually used to pool insurance premiums to establish an insurance fund, which is used to compensate the insured for losses caused by natural disasters or accidents, or to assume the responsibility of paying insurance benefits when an individual dies, is disabled, falls ill or reaches the age limit agreed in the contract.

Extended data:

Trick recognition

Consumer behavior and business behavior are vague, and pyramid sellers use some "tricks". What I promoted to you in the early stage was investment and financial management behavior, and later you became a consumer unconsciously; Or promote consumer behavior, and later let you become an investor; Even citing vague concepts such as "consumption capitalization" makes you lost between investment and consumption. This will bring many difficulties to your legal rights protection (note: consumer behavior and investment business behavior are two different legal concepts, and the applicable laws are: Consumer Protection Law and Contract Law). In the name of selling goods, providing services, investing in projects and other business activities, organizations and leaders require participants to obtain the qualification to join by paying fees or purchasing goods, services and investments.

In the MLM Prohibition Ordinance, the concept of hierarchical relationship has been repeatedly mentioned. The formation of hierarchical relations according to certain laws is only a phenomenon in many pyramid schemes, and it is only possible to be suspected of pyramid schemes if it is related to illegal possession of other people's property. For example, village-level community stores have five or six grades of goods, all of which are normal sales. Therefore, the object of pyramid selling infringement is complex, and pyramid selling is often accompanied by tax evasion and price gouging. Infringe on multiple social relations and legal objects; There must be two main object elements: 1, fraud (infringement of citizens' property ownership); 2. Disturbing social management order and economic order.

References:

MLM- Baidu encyclopedia