Which is better, life insurance or dividend insurance?

Whole life insurance is a kind of life insurance. The terminal age of general life is 100 years old. If the insured lives to 65,438+000 years old, the insurance company can pay the insurance money to the beneficiary. This kind of insurance can ensure that the insured can provide life security for his family by paying insurance money when he dies unfortunately, and the family will not be torn apart because of the death of the insured. Therefore, life insurance is generally suitable for people with heavier family responsibilities to buy. Whole life insurance is more suitable for people with high and stable income who need to manage family property.

Dividend insurance is a long-term financial management tool. In general, it is more cost-effective to insure for 10 years or more. However, the two families should carefully choose dividend insurance. For families with 1 and a large short-term cost, the insured can only refund the money according to the cash value of the policy, and the excess cannot be refunded. Therefore, it is difficult for families with unstable income to buy dividend insurance. People who want to protect more people can choose some insurance with long insurance period and strong protection. It can be said that dividend insurance is a planned version of traditional life insurance, and the coverage of traditional life insurance is fixed. The dividend of dividend insurance can be gradually increased with the insured amount of customers, and can also be used flexibly at will. The premium is almost the same as the traditional life insurance, and it is also the choice of long-term protection. Traditional life insurance solves the problem of protection. Dividend insurance is to enjoy the company's dividends according to the company's operating results, which can alleviate the pressure brought by the economy to a certain extent. In addition, dividend insurance has dual functions of protection and investment. Traditional life insurance is only a fixed expected interest rate, and the risk protection is fixed. Insurance companies specialize in the operation of dividend insurance funds, which can not only invest in funds, but also invest in bonds, which can effectively resolve risks, and get the dividend performance report of insurance companies every year to share the company's operating results.

Disadvantages of dividend insurance

However, although the return of this dividend insurance is expected, it is not certain. The return of risk is determined according to the specific investment income. Pay more dividends if you earn more, and pay less dividends if you earn less. How much dividends investors get mainly depends on the company's operation. The dividend level is often not promised by insurance companies, while traditional life insurance has no dividend and is fixed.

Whole life insurance's shortcomings

Whole life insurance's premium is relatively expensive, and the insured must pay for it for at least 20 years. It is best not to surrender the insurance midway. Otherwise, it will not only fail to achieve the expected protection effect, but also lose a lot of premiums, which will make consumers lose more than they gain.

In fact, choosing dividend insurance or traditional life insurance is to give yourself a guarantee, just to see if you need to invest in dividends, which depends on your own requirements for insurance.