Non-dividend insurance and dividend insurance

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(1) Dividend insurance

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.

(B) the disadvantages of dividend insurance

1. The safeguard function is relatively weak.

Although dividend insurance has the protection function, the coverage is very limited and the amount of protection is relatively low. Different from traditional guaranteed life insurance products, some types of insurance can even be ignored, especially simple savings dividend products, which are very similar to bank savings except for the protection function.

Uncertainty of dividend

Although dividend insurance usually has dividend income, the insurance company does not promise to pay dividends, but only pays dividends when the investment realizes the income. In the years when the capital market is depressed, dividends may generally be very low, even lower than the bank's interest rate for the same period. The uncertainty of dividend distribution increases the uncertainty of expectation. Once the dividend is too low, it will undoubtedly undermine the development of the insurance market. The characteristics of insurance types determine that business personnel are easy to mislead customers for short-term immediate interests in the sales process, which will also bring disadvantages to the development of dividend insurance market.