Yes, this product is called endowment assurance, which is a kind of financial insurance.
But people who know something about insurance generally don't like this kind of old-age security. Double insurance is also a complicated financial contract. I hope everyone will read this article before deciding whether to buy it or not.
Today we mainly talk about the following issues:
What is all risks? What types are there?
What is the cost performance of the two insurances? Is it worth buying?
What are the benefits of two insurances? What are the disadvantages?
What is all risks?
Endowment assurance, the full name of which is life-and-death old-age security, generally consists of term insurance, for example, covering the responsibility of death/serious illness/accident before the age of 60, and the amount of compensation. If you live safely to the age of 60, pay the principal and interest in one lump sum or give a sum of money every few years before the age of 60.
Old-age security can be said to meet China people's expectations of insurance, paying for sickness and death, hanging the insurance amount in the middle, and not returning the premium interest unexpectedly when it expires. Isn't this the insurance in our dreams?
If you think so, you are still too young. Are insurance companies stupid? Save us money and pay you back. If something goes wrong, we will lose money, but if nothing goes wrong, we will pay interest. Can ordinary people still take advantage of insurance companies and actuaries?
Don't worry, be specific.
There is an important knowledge point here. Most insurance companies in the market will not sell old-age security separately, but sell it together with health insurance.
Both risks are composed of two kinds of insurance:?
Main insurance, two-insurance plus additional insurance (critical illness/life insurance/accident insurance/cancer prevention insurance)?
Divided into four forms:
Each combination has its own function.
Among them, the main function of the main insurance is to pay at maturity (return 105%- 150% premium) and the real protection function is undertaken by its additional critical illness insurance/life insurance/accident insurance/cancer prevention insurance.
take for example
For example, the common nature of endowment insurance:
In the most popular words, it is to buy this insurance. If you reach the claim standard within the agreed time, the insurance company will pay you a sum of money, which is the death insurance; If you are still in good health after the appointed time, it will taste good. Well, congratulations, the insurance company will still pay you a sum of money, that is, survival insurance.
Is it worth buying two copies of the full insurance value?
Someone said, "So it's good to have a reward! Although not' Ben'! It's also money! "
But money has time value, and besides, everyone knows that inflation exists, which is not worth mentioning at all. The money returned to you 30 years later is not worth mentioning ... think of the extremely awesome ten thousand yuan households in the 1980 s. Does it sound a little emmmm today?
More importantly, have you ever thought about the premium difference between the two types of total insurance and pure protection insurance?
Take the simplest term life insurance PK as a comparison.
Option 1: Configure two full risks.
Coverage: 654.38+10,000 yuan
Annual premium: 9900 yuan
Payment method: 20-year guarantee for 30 years, and all premiums will be returned at maturity.
20-year premium: 9900 yuan *20 years = 198000.
Option 2: term life insurance+excess premium savings investment, with annualized compound income of 4%.
Consumer term life insurance under the same age and security conditions;
Coverage: 654.38+10,000 yuan
Premium: You only need to pay the same 30-year and 20-year guarantee in 300 yuan every year.
In contrast, the annual savings of 9900 yuan -300 yuan =9600 yuan, 20 years of continuous investment income of 420 thousand yuan.
Suppose we invest this saved premium one after another, and calculate the annual income at 4%. By the end of the guarantee, we will get about 420,000 yuan!
Thirty years later, an insurance company easily earned a difference of198,000 yuan, a self-made investment of 420,000 yuan and more than 200,000 yuan.
The main insurance and endowment assurance (the insurance that undertakes the function of maturity payment) account for most of the premium cost, accounting for more than 70%. In order to get the so-called "return on capital", you have to pay more premiums every year.
300 yuan/year can solve the safety problem, just need 9900 yuan/year. Are you sure this is really the insurance product you want to buy?
I believe all the friends here have a clear understanding that insurance coverage is really not cost-effective.
Will it be less to buy a pure protection insurance with higher cost performance and then enjoy 4% savings than to return two policies when our policies expire 30 years later? If the actual rate of return is above 4%, the future money will be far more than this. For most ordinary families, I hope everyone can figure out this account.
What are the advantages and disadvantages of the two risks?
1. paid two insurances, and only 1 was paid in the end.
The two kinds of all-insurance products seem to be stable products, but they are actually bundled in disguise, and they only pay one insurance amount.
Although both parties are satisfied, the insurance premium and additional insurance premium of both parties are paid by one of them. After paying one of them, the contract is over.
As a combined product, if the critical illness insurance pays in advance, then part of endowment assurance's responsibility will disappear and you will not be paid when it is due. It is equivalent to paying two insurance premiums and only getting one insurance premium in the end.
Many of the critical illness insurance products sold by salesmen of established offline insurance companies are endowment assurance, and the premium is really too high.
2. Price limit, the protection you really need is short of weight.
Because the insurance payment of endowment insurance is inevitable, its premium rate is relatively high, which means we have to spend more money.
But we have spent so much money, but the protection actually bought is obviously insufficient.
More than 70% of the premium is used to be returned at maturity, and the rest of the old-age insurance has little guarantee responsibility or the insurance amount is not high enough. When I bought it, I thought it was "the best of both worlds", but when something went wrong, it became a "chicken rib".
3. The financial management function is really weak, so it is necessary to force savings.
You must deposit a sum of money every year, otherwise the insurance contract will be invalid and the money ahead will be wasted.
Endowment assurance's income from financial management function is really not very high, which is similar to that of banks. At least you can take it out anytime.
If you really need money urgently, are you in a daze with this double insurance contract with insufficient protection, or do you choose the bank with investment income to realize it quickly?
Final summary
I believe everyone understands that "the best of both worlds" actually means "less than the last one and less than the next one".
Ordinary endowment assurance rarely buys it, because the yield is too low, sometimes it may be less than 2% a year. There is really no need to buy this kind of chicken rib insurance, which lasts for ten or twenty years.
In fact, we don't exclude insurance with financial management function, but we don't agree with double insurance with low yield and poor liquidity.
The financial management part will devour the critical illness insurance, resulting in insufficient insurance coverage. It's hard to achieve when it's really needed. When there is a serious illness or a major change in death, pure insurance can play the leverage effect of insurance.
No product can satisfy safety, liquidity and high yield at the same time. There must be a trade-off, so be sure to weigh which is the transfer risk you need most.
Therefore, in order to get enough protection, it is suggested that we should talk about financial management after the pure protection insurance portfolio is completed, and don't waste every premium with high leverage in the future.