Classification of general life insurance

I. Classification of life insurance: it is divided into ordinary life insurance and new life insurance. Ordinary life insurance is divided into term life insurance, whole life insurance, endowment insurance and annuity insurance. New life insurance includes dividend insurance, investment-linked insurance or universal insurance. Second, the definition of ordinary life insurance: 1, term life insurance: refers to life insurance with death as the condition of paying insurance benefits and a fixed insurance period. The biggest advantage is that you can get a large amount of insurance for a certain period of time with a very low premium. Disadvantages: If the insured still exists after the expiration of the insurance period, it will not be able to get the payment of the insurance premium, and the insurance premium already paid will not be refunded. 2. whole life insurance: refers to life insurance with death as the condition for payment of insurance benefits, and the insurance period is lifelong. The biggest advantage: you can get permanent protection and have the right to refund the fee. If the insured surrenders midway, he can get a certain amount of surrender money. 3. Old-age security: refers to life insurance with death or survival as the payment condition during the insurance period. 4. Annuity insurance: refers to life insurance that pays insurance benefits in installments according to the agreement on the condition of survival or not, and the interval of paying insurance benefits in installments is not more than one year (including one year). III. Definition of new life insurance: Dividend insurance: refers to the life insurance products in which the insurance company distributes the surplus of the actual operating results according to a certain proportion of the insured, which is superior to the pricing assumption. The main characteristics of dividend insurance are: 1, and the insured enjoys the operating results; China Insurance Regulatory Commission stipulates that at least 70% of the distributable surplus of dividend business in the current year will be distributed to customers. 2. The customer bears certain investment risks; Dividend insurance enables insurance companies and customers to share investment risks to a certain extent. 3. The actuarial assumption of pricing is conservative; 4. Insurance premium and surrender premium include dividends; The surrender premium received by the dividend insurance applicant at the time of surrender also includes the sum of the policy dividend and its interest. Investment-linked insurance: refers to life insurance products with insurance protection function and certain asset value in at least one investment account. The investment risk is entirely borne by the insured. The policy cash value of investment-linked insurance products matches the assets of a separate investment account (or "fund"), and the cash value is directly linked to the investment performance of the assets of a separate account, with no minimum guarantee. Main features of investment-linked insurance products: 1, investment account setting: set up a separate investment account, and the insurance company will calculate the account value according to the number of investment units under the policy and the corresponding investment unit price. 2. Insurance liability and insurance amount: insurance liability is similar to traditional products; There are two ways to design the amount of death insurance: one is to pay the larger amount of insurance and the value of investment account; The other is to pay the sum of the insurance amount and the value of the investment account. 3. Insurance premium: One way is to increase the insurance premium holiday on the basis of fixed payment, allowing the insured not to pay on the agreed date, and the policy is still valid. Another way is to cancel the concepts of payment time, payment frequency and payment amount. 4. Handling fee collection: Only the following fees can be collected for investment in linked products: initial fee, bid price, risk insurance premium, policy management fee, asset management fee, handling fee and refund premium.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.