What are dividend insurance and universal insurance?

Dividend-paying insurance refers to the insurance that the insured can share the operating results of the insurance company, and the insured has the right to receive the dividend distribution based on the operating results of the insurance company every year. Simply put, it is to pay dividends and enjoy the company's operating results.

Universal insurance is a kind of insurance products. Like traditional life insurance, it can not only protect life, but also allow customers to directly participate in the investment activities of funds in the investment account set up by insurance companies for the insured. The value of the policy is linked to the fund performance in the investment account of the insured operated independently by the insurance company.

Most of the premiums are used to purchase investment account units set up by insurance companies, and investment experts are responsible for the transfer of funds in the accounts and investment decisions, and put the funds into various investment tools.

Extended data:

The dividend of dividend insurance comes from the "three differences in income" of life insurance companies, namely, the difference in death, the difference in profit and the difference in expenses. Dividend distribution methods mainly include cash dividend method and incremental dividend method. The two methods of surplus distribution represent different distribution policies and dividend-sharing ideas, and reflect different transparency and fairness.

The impact on policy assets share, liability reserve and cash flow of life insurance companies is also different. Therefore, in order to safeguard the interests of the insured, life insurance companies should take a very cautious attitude towards the formulation and change of dividend distribution methods. They should not only pay attention to the reasonable expectations of policy holders, but also implement the fair principles of honest management and dividend distribution, and fully consider the impact of dividend distribution on the company's future dividend level, investment strategy and solvency.

References:

Baidu Encyclopedia-Dividend Insurance? Baidu encyclopedia-universal insurance