Is the traditional commercial endowment insurance worth buying?

The traditional commercial endowment insurance is an insurance with fixed payment, fixed collection and fixed interest. People of different ages will have different payment standards. After the payment reaches a certain number of years, you can start to receive pensions, and you can choose the payment method and the amount of insurance money you will receive in the future.

Advantages of traditional commercial endowment insurance;

The biggest advantage is that the return is fixed. For the traditional old-age insurance, each insurance company has a rate table calculated by life table, which pays different fees according to different age stages and can receive insurance money until retirement. Payment can be made monthly or annually. When and how much money you want to get in the future, you can choose when you apply for insurance, and the rate of return on pensions will not be affected by other factors. Previously, some pension insurance on the market designed returns according to the interest rate at that time, and its return rate could reach 10%.

The disadvantages of traditional commercial endowment insurance;

Because the traditional commercial endowment insurance has a fixed interest rate, it also has a disadvantage. If there is inflation, there will be a risk of depreciation, which is somewhat uneconomical in the long run. Therefore, major insurance companies usually do some optimization on the basis of traditional commercial endowment insurance.

To sum up, the general traditional commercial endowment insurance is suitable for conservative and older people. Before buying, we'd better carefully consider and choose the most suitable endowment insurance products.