Traditional endowment insurance products

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In the commercial endowment insurance market, there is no restriction on which kind of endowment insurance products are specially used for providing for the aged. As long as it has the function of paying insurance premiums or paying dividends regularly, it can be purchased as endowment insurance. At present, the traditional, dividend-sharing, universal insurance and investment-linked insurance sold in the market can all achieve the purpose of providing for the aged.

1. Traditional commercial endowment insurance: like a table, it is clear at a glance. How much to pay, how much to pay each year, when to collect, how much to collect each time, and so on. You can budget in advance, and this kind of endowment insurance product is suitable for conservative investors.

2. Dividend-sharing commercial endowment insurance: flexible, but the income is uncertain. But generally speaking, in order to ensure the interests of the insured, all dividend insurance products will set a minimum rate of return, such as 2%. In this case, the investment income is lower than the tradition. But its advantage is that it is still considerable when the income is high, and there will be extra dividends on a regular basis every year.

3. Universal insurance: It is very popular in recent years, because its most attractive place is "compound interest". It's a bit like dividend insurance, which guarantees the lowest rate of return, but has an "investment account". Dividends or returned money can enter this "investment account", and the money in the account will be calculated in the form of compound interest. The longer the time, the higher the income.

4. Investment-linked insurance: more like a venture capital approach. High risks and high returns coexist, and insurance companies will not give guaranteed interest rates. Whether it is a loss or a gain, the customer bears the risk himself. Insurance companies are like financial investment consultants in the middle, and only charge some management fees in return.

The above kinds of commercial endowment insurance are completely different for people. It is suggested to choose according to your income and your ability to bear investment risks. It is better to have no old-age insurance, and it is most important to suit yourself.

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