What does commercial endowment insurance cover?

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There are four kinds of products that can be insured by commercial endowment insurance: traditional, dividend-sharing, universal and investment-linked The following is a detailed introduction for everyone to understand. Commercial endowment insurance product information

1. Traditional endowment insurance

The predetermined interest rate is generally between 2.0% and 2.4%, and the income is certain, that is, when you buy it, you know when you can get the money and how much you can get each time. The advantage of traditional endowment insurance is that the return is fixed, but the disadvantage is that if the inflation rate is high, there is a risk of depreciation. Therefore, the traditional endowment insurance is suitable for older and more conservative investors.

2. Dividend endowment insurance

The predetermined interest rate is guaranteed, but it is low, generally between 1.5%-2.0%. Dividend-based endowment insurance has dividend benefits every year. Its advantage is that the income is linked to the operating profit of the insurance company, which can resist the currency in theory, but its disadvantage is that the annual dividend is uncertain. Therefore, dividend-paying pension insurance is also suitable for investors with conservative financial management.

3. Universal life insurance

There is a guaranteed income, and the predetermined interest rate is currently 1.75% ~ 2.5%. Advantages are transparent account, convenient access and convenient investment. The disadvantage is that it is convenient for additional investment. For people with poor self-control or bad savings habits, they may not be able to save enough pensions in the end. Therefore, universal life insurance is suitable for people with strong self-control, rationality and long-term investment.

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4. Investment-linked insurance

Also known as "fund fund", it is a means of long-term investment, and there are different types of risk accounts, which are linked to the income of different investment varieties. Without guaranteed income, insurance companies only charge account management fees, and all profits and losses are borne by customers. Advantages are investment-oriented, safety-oriented, expert financial management to choose investment varieties, flexible conversion between different accounts, to adapt to different situations in the capital market. As long as you insist on long-term investment, you may get high returns. The disadvantage is that it is the insurance product with the highest investment risk. If you can't stand short-term fluctuations and adjust blindly, you may lose a lot.