Universal life insurance in the UK

Universal insurance (referred to as universal insurance) refers to a personal insurance product that includes insurance protection functions and has a certain asset value in at least one investment account.

In addition to providing life protection like traditional life insurance, universal insurance also allows customers to directly participate in the investment activities of funds in the investment account established by the insurance company for the policy holder, and combine the value of the policy with the funds in the policy holder's investment account independently operated by the insurance company.

performance is linked.

Most of the premiums are used to purchase investment account units set up by insurance companies. Investment experts are responsible for mobilizing funds in the account and making investment decisions, and invest the protected funds in various investment instruments.

A financial management method that calculates the value of assets in an investment account and ensures that the policy holder can use expert financial management to carry out investment operations on the premise that the policyholder enjoys the principal and certain interest protection of the account balance.

Universal insurance has a lower guaranteed interest rate, which is roughly the same as participating insurance; the insurance contract stipulates that the payment of premiums and changes in insurance amounts are relatively flexible, with greater flexibility, and can fully meet the protection needs of customers in different periods; both guaranteed

The lowest interest rate and the possibility of high returns brought by high interest rates make it more attractive to customers.

It provides the possibility for a person to solve the protection problem with only one life insurance policy for his whole life.

Flexible premium payment and adjustable protection make it very suitable for lifelong protection planning.

The concept of universal insurance was first introduced from abroad. It refers to life insurance that can pay insurance premiums at will and adjust the amount of death insurance benefits at will.

That is to say, in addition to paying a certain minimum amount of the first installment of insurance premiums, the policyholder can pay any amount of insurance premiums at any time, and arbitrarily increase or decrease the death benefit amount, as long as the accumulated cash value of the policy is sufficient to cover subsequent payments.

That’s it for the period’s costs and fees.

Moreover, the calculation of the cash value of universal insurance has a minimum guaranteed interest rate, which guarantees the lowest rate of return.

The "omnipotence" of universal life insurance is that after taking out the insurance, the insurance amount, premium and payment period can be adjusted according to the protection needs and financial conditions at different stages of life, to determine the best ratio of protection and investment, so that limited funds can play the maximum role.

Universal insurance is an investment-type life insurance that coexists risk and protection, and is between participating insurance and investment-linked insurance.

The premium paid is divided into two parts, one part is used for insurance protection and the other part is used for investment account.

The policyholder has the initiative to set the protection and investment limits, which can be adjusted according to different needs; the account funds are invested and managed by the insurance company on his behalf, and there is no cap on investment benefits and a minimum guaranteed interest rate.

In 1979, the world's first universal life insurance came into being in the United States.

Due to its characteristics such as flexible payment and adjustable protection, universal insurance has been favored by the market since its launch.

According to statistics from LIMRA (Life Insurance Association of America), the proportion of universal insurance in the U.S. market was 38% in 1985, and has remained at around 25% since then; in the first quarter of 2003, the market share of universal insurance increased to 32%.

Since the mid-1980s, universal life insurance has also shown strong market vitality in European countries.

In a very short period of time, it has seized the insurance market in the United Kingdom, the Netherlands and other countries.

After universal life insurance landed in the Asian market, it quickly became popular in Japan, Singapore, Hong Kong and other places, becoming one of the main insurance types sold in the market.

Universal life insurance has been developing in China for several years. The various laws and regulations on universal insurance issued by the insurance regulatory authorities show that the government's supervision of universal insurance is becoming more standardized.

It can be said that the development of universal life insurance in the Chinese insurance market is facing the best opportunity in history.