What's the difference between dividend endowment insurance and traditional endowment insurance?

At present, commercial endowment insurance includes: traditional endowment insurance, dividend endowment insurance, comprehensive endowment insurance, investment-linked insurance, universal life insurance and so on.

First, the traditional endowment insurance.

The predetermined interest rate of traditional endowment insurance is fixed, generally 2.0%-2.4%. When and how much you will receive in the future can be clearly selected and predicted when you apply for insurance.

Two. Dividend endowment insurance

Dividend-sharing pension insurance usually has a guaranteed predetermined interest rate, but this interest rate is slightly lower than that of traditional pension insurance, generally only 1.5%-2.0%. But in addition to the predetermined interest rate, there are still uncertain dividend benefits to be obtained.

Three. Universal life insurance

Universal life insurance is a long-term financial management method. After deducting part of the initial cost and guarantee cost, the premium of such products goes into personal accounts, and personal accounts also have guaranteed income, which is generally around 2%-2.5% at present, and some of them are also linked to one-year regular interest of banks. In addition, there are uncertain additional benefits.

Four. Investment linked insurance

Investment-linked insurance is one of the highest investment risks. Of course, there are risks and benefits, and it is also the most likely to get higher returns. Investment-linked insurance is also a means of long-term investment, but there is no guaranteed income. Insurance companies only charge account management fees, and all profits and losses are borne by customers.

However, it is a long-term investment process for the insured to purchase commercial endowment insurance, so it is necessary to polish their eyes and choose the best variety according to their actual financial situation. Under the current financial crisis, investment and wealth management endowment insurance products are risky, so it is suggested that ordinary wage earners choose traditional and two-way insurance.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.