What do dividend insurance and traditional life insurance mean?

(1) Dividend insurance refers to the right of the insured to enjoy the distributable surplus of the dividend insurance business of the insurance company.

(2) Traditional life insurance (term life insurance): refers to life insurance with only protection and savings functions.

Explain in detail:

Dividend insurance originated from the risk of changes in the fixed interest rate and market yield of the policy, which will be shared by the insured and the insurance company for a long time to come. It refers to a kind of life insurance in which the insurance company distributes the distributable surplus of this kind of dividend insurance in the previous fiscal year to customers in a certain proportion in the form of cash dividend or value-added dividend after the end of each fiscal year. Dividend insurance is an effective means for life insurance companies all over the world to avoid interest rate risk and ensure stable operation. Compared with the traditional guaranteed life insurance policy, the dividend policy provides non-guaranteed insurance benefits to the insured, and the distribution of dividends will also affect the debt level, investment strategy and solvency of the insurance company.

Life insurance is one of the most important types of insurance, which takes people's life and life and death as insurance accidents, also known as life insurance. Life insurance is a kind of life insurance. Like all insurance businesses, the insured transfers the risk to the insurer, accepts the insurer's terms and pays the insurance premium. Different from other insurances, life insurance transfers the risk of the insured's survival or death.