How to understand that Kunlun health insurance can be reduced by 20% every year?

The 20% reduction here refers to the cash value, which is actually the annual reduction rule of Kunlun Health Insurance. This is the advantage of whole life insurance, which can reduce the insured amount flexibly, but some products also have certain rules.

It is worth noting that Lexiang's annual insurance amount reduction rules are written into the policy terms, which is safe and secure.

At the end of the hesitation period and validity period of this contract, the applicant may apply to our company to reduce the basic insurance amount of this contract. After approval by our company, the basic insurance amount will be reduced, and our company will return the cash value corresponding to the reduced basic insurance amount to the insured.

The sum of the basic insurance amount reduced by the applicant in each insurance year shall not exceed 20% of the basic insurance amount when this contract comes into effect.

The reduced basic insurance amount shall meet the minimum basic insurance amount requirements stipulated by the company. After reducing the basic insurance amount, the effective insurance amount, accumulated premium paid and cash value of each policy year under this contract will be reduced in the same proportion.

The insurance premiums of each period of this contract after the reduction of the basic insurance amount shall be recalculated according to the reduced basic insurance amount, and the Company shall bear the insurance liability according to the reduced insurance premium and the effective insurance amount of each policy year.

The above is a description of the terms. The simple understanding is that after the hesitation period, the insurance can be reduced, and the annual reduction amount does not exceed 20% of the policy, and then the cash value can be recalculated.

The common insurance reduction rule in the market is also mentioned by dad in his usual evaluation, that is, the annual insurance reduction amount shall not exceed 20% of the accumulated premium paid.

The insurance deduction is fixed because the accumulated premium is fixed. After the payment is completed, if it has been paid back, the insurance can be reduced and there will be no financial loss.

It is common in the market to reduce the insured amount by no more than 20% of the basic insured amount every year, and only 1 time every year.

In addition, there is a time limit.

For example, you can only apply for insurance reduction after the policy has expired for five years, and each reduction does not exceed 20% of the basic insurance amount, and you can only reduce 1 time a year.

Of course, there are also increases in the whole life insurance clause that do not include the rule of reducing the insured amount, and the insured amount can be reduced at any time after the hesitation period.

This kind of product has strong autonomy, but we can't reduce the insurance at will. At first, the cash value of the policy is not high and it is easy to lose money.

However, there are also a few products that require an integral multiple of 100 yuan each time, and the cash value after insurance reduction shall not be less than a fixed amount.

If you have a choice, try to choose this type when applying for the increase in whole life insurance.