Wealth management type insurance, generally concerned with the financial aspects of the lower protection, and investment returns are uncertain, there is a possibility of loss.
Participating insurance, generally divided into two accounts, one for dividends and one for protection.
Participating insurance does not have a separate investment account and the annual dividends are uncertain.
Participating insurance dividends come from three main sources, the fee differential benefit, the death differential benefit and the interest differential benefit, and the protection part of the funds predetermined interest rate of about 2%-2.5%.
In the long run, participating accounts are capital-protected, while financial insurance is not necessarily capital-protected.
Expanded:
Financial insurance is a type of insurance that combines the dual functions of insurance and investment and finance. Financial insurance is divided into three categories: participating insurance, universal insurance and investment-linked insurance. Among them, participating insurance and universal insurance are financial products, while investment-linked insurance is an investment product.
Participating insurance
Participating insurance includes participating life insurance, participating pension insurance, participating whole life insurance and other types of insurance with dividends.
Participating insurance can be categorized into investment and protection based on its functions. With-profits insurance products are investment-type with-profits insurance on behalf of the bank insurance, mainly for a one-time payment of insurance, usually for 5 years or 10 years, its protection function is relatively weak.
Participating insurance for protection is mainly ordinary life insurance products with dividends, such as participating insurance and term participating insurance. This kind of insurance focuses on the function of personal protection, and the dividend is only as an additional benefit. And what we need to know is that the insurance cost of participating insurance is relatively high.
Two, universal insurance
Universal insurance, refers to the insurance protection function and at least in an investment account has a certain asset value of life insurance products.
The guaranteed interest rate is low, and the premiums paid by the insured are divided into two parts, one for insurance protection and the other for savings and investment.
The reason why universal life insurance is called "universal" is because of the advantages of flexible premiums, adjustable sum assured, and easy collection of policy value.
Three, investment-linked insurance
Investment-linked insurance, is a new form of insurance that integrates protection and investment. Investment-linked insurance is more suitable for people above the middle class and with a strong risk tolerance.
Because investment-linked insurance is more risky and the risk is fully borne by the policyholder. The rate of return of the investment portion of investment-linked insurance is not fixed, and future investment returns are somewhat uncertain. The policy value will be determined according to the actual investment returns of the insurance company.
Higher returns will mean higher returns for the policyholder, but if the returns are lower or non-existent, then the policyholder will have to bear certain risks.
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