The characteristics of the third pillar endowment insurance are as follows:
1. Personal voluntary choice: The choice of participating in the third pillar pension insurance is entirely decided by the individual, and there is no pressure from the superior to make profits.
2. Flexible payment amount: The specific payment amount is not strictly stipulated, and participants can determine the payment amount and payment period by themselves according to their own financial situation and risk preference.
3. High return on investment: Compared with the national basic old-age insurance, the third pillar old-age insurance has a higher return on investment, because funds can be invested according to market-oriented financial management methods.
4. Inheritance right: If a participant dies unexpectedly while not enjoying the pension, he can transfer or pay his insurance share to his relatives or other heirs, or return the paid contributions under specified conditions.
5. Tax preference: In different countries and regions, you can enjoy tax preference by paying the third pillar pension insurance. For example, in China, individuals who pay a certain amount of commercial health insurance and tax preferential commercial endowment insurance can deduct personal income tax according to their pre-tax income.
In a word, the third pillar pension insurance is an individual-oriented market-oriented pension insurance system, which has the characteristics of voluntariness, flexibility and high income, and is suitable for some people or families to make up for the shortage of national or enterprise pension insurance.