What kinds of life insurance are there?

Death insurance, death insurance refers to life insurance with the death of the insured as the condition of paying insurance money. Death insurance is divided into term life insurance (i.e. term death insurance) and whole life insurance (i.e. indefinite death insurance). Term life insurance. Term life insurance refers to life insurance with death as the payment condition and fixed insurance period. Specifically, the term life insurance contract stipulates that a certain period is the insurance validity period. If the insured dies within the agreed time limit, the insurer will pay the insurance money agreed by the beneficiary. If the insured is still alive at the expiration of the insurance period, the insurance contract will be terminated immediately, and the insurer has no obligation to pay the insurance premium and will not refund the insurance premium already collected. For the insured, the biggest advantage of term life insurance is that it can get greater insurance protection at a very low premium in a certain period of time; Its disadvantage is that if the insured is still alive after the expiration of the insurance period, he can't get the payment of insurance money, and the paid insurance premium will not be refunded.

Whole life insurance. Whole life insurance refers to life insurance with death as the payment condition and the insurance period as life. Whole life insurance is an indefinite death insurance, that is, there is no time limit in the insurance contract, from the effective date of the contract to the death of the insured. In other words, the insurer shall bear the insurance responsibility for the insured for life, and the insurer shall have the obligation to pay the insurance money no matter when the insured dies. The greatest advantage of whole life insurance is that the insured can get permanent protection. If the insured surrenders midway, he can get a certain amount of cash value (or "surrender premium"). According to the payment methods, whole life insurance can be divided into ordinary whole life insurance, whole life insurance and whole life insurance.

① Ordinary whole life insurance. Ordinary whole life insurance refers to whole life insurance, which pays insurance premiums in installments for life.

(2) Time limit for paying whole life insurance. Whole life insurance with limited payment refers to whole life insurance, which pays the insurance premium in installments within the specified period, and no longer pays the insurance premium after the expiration, but still enjoys insurance protection. The payment period in whole life insurance can be a certain number of years, or it can be stipulated that the payment should reach a certain age.

(3) whole life insurance. Whole life insurance refers to whole life insurance, which paid the insurance premium in full at the time of insurance. Whole life insurance can also be regarded as a special form of limited payment insurance.

Survival insurance, survival insurance refers to life insurance with the survival of the insured as the condition for paying insurance benefits. That is, when the insurance expires or reaches the age agreed in the contract, the insured is still alive and the insurer is responsible for paying the insurance money. Survival insurance is mainly to provide old-age security for the elderly, or to provide education funds for children. Annuity insurance is a kind of survival insurance that pays insurance money to the insured regularly.

Old-age security and old-age insurance (also known as "life and death insurance") refer to life insurance in which the insured dies or continues to exist at the expiration of the insurance period, and the insurer pays the insurance premium per capita. Old-age security combines regular death insurance and survival insurance. When the insured dies within the period stipulated in the insurance contract or is still alive after the expiration of the contract, the insurer pays the insurance money according to the contract. Old-age security is very saving, and its pure premium consists of dangerous premium and savings premium. Danger premium is used for death compensation during the insurance period; Savings premiums are accumulated year by year to form a liability reserve, which can be used to pay the surrender premium when surrendering midway, and can also be used for survival payment. Because the old-age security has both death protection and survival protection, the old-age security should not only protect the beneficiaries, but also enable the insured to enjoy their benefits.

New life insurance

Dividend insurance should be a traditional insurance business in essence.

Definition of dividend insurance. Dividend insurance refers to the life insurance products that the insurance company distributes the actual operating results to the insured in a certain proportion. The applicant here refers to the person who enjoys the benefits of the insurance contract and the right to pay dividends according to the contract. Dividend insurance, non-dividend insurance and dividend insurance products and their additional non-dividend insurance products must be accounted for separately. If the dividend insurance adopts a fixed fee rate, the corresponding additional premium income, commission and management fees are not included in the dividend insurance account; If the fixed mortality rate is adopted, the corresponding death premium income and risk insurance payment are not included in the dividend insurance account.

Main features of dividend insurance products. The characteristics of dividend insurance products are mainly reflected in the following aspects: 1. The insured enjoys the operating results. Dividend insurance not only provides various guarantees agreed in the contract, but also distributes part of the surplus generated by operating dividend insurance to the insured in the form of dividends every year. At present, the CIRC stipulates that insurance companies should distribute at least 70% of the distributable surplus of dividend insurance business in the current year to customers. In this way, the insured can enjoy the operating results together with the insurance company, which increases the profit opportunities of the insured compared with non-dividend insurance. 2. Customers bear certain investment risks. Because the operating conditions of insurance companies are different every year, the dividends that customers can get will be different. In the years when the insurance company is in good operating condition, customers will get more dividends; If the insurance company does not operate well, customers will get little or no dividends. Therefore, dividend insurance enables insurance companies and customers to share investment risks to a certain extent. 3. The actuarial assumption of pricing is conservative. The pricing of life insurance products is mainly based on three factors: predetermined mortality rate, predetermined interest rate and predetermined expense rate. The gap between these three factors and the actual situation directly affects the operating performance of life insurance companies. For dividend insurance, life insurance companies should distribute part of the surplus to customers in the form of dividends, so the actuarial assumption is conservative when pricing, that is, the policy price is higher, so as to generate more distributable surplus in the actual operation process. 4. Insurance premium and surrender premium include dividends. After the death of the insured in dividend insurance, the beneficiary can get unpaid accumulated dividends and interest at the same time as the insured amount agreed at the time of insurance. When the payment is due, the insured can get the accumulated dividends and interest that have not been received at the same time as the insured amount. The premium paid by the insured of dividend insurance when surrendering insurance also includes the policy dividend and its interest.

Dividend insurance policy bonus. Dividend insurance products are essentially products that the insured enjoys the right to distribute the policy surplus, that is, the surplus of life insurance companies, such as dead profit, spread profit and expense profit. , is allocated to the insured according to a certain proportion. The policy surplus distributed to the insured is usually called the policy dividend. ① Pear Garden. The dividend of dividend insurance is essentially the surplus of insurance companies. Surplus means that the share of policy assets is higher than the value of future liabilities. The actuarial departments of insurance companies and other relevant departments calculate the surplus amount that can be distributed as dividends every year, and the company decides the distribution amount according to business judgment, which is called distributable surplus. The generation of surplus (or dividend) is determined by many factors, but the most important factors are spread profit (loss), dead profit (loss) and expense profit (loss). For life insurance with death as the insurance liability, the benefit (loss) of death is the benefit (loss) caused by the actual mortality rate being less than (greater than) the predetermined mortality rate; When the actual investment return rate of an insurance company is higher than (lower than) the predetermined interest rate, it will generate interest spread (loss); When the actual operating expenses of the company are less than (greater than) the profit (loss) generated by the expected operating expenses, the expense difference profit (loss) will be generated. Dividend distribution. The actuarial provisions of the CIRC on individual dividend insurance include the following specific contents: First, the principle of dividend distribution. The distribution of dividends should conform to the principles of fairness and sustainability. Second, the dividend distribution ratio. The actual surplus proportion distributed by an insurance company to the insured in each fiscal year is not less than 70% of the distributable surplus in that year. Third, the dividend distribution method. Dividend distribution methods include cash dividend distribution and incremental dividend distribution. Cash dividend refers to the way to distribute the surplus directly to the policyholders in cash. Insurance companies can provide cash, premium payment, accumulated interest and purchase paid insurance amount and other ways to receive dividends. Increasing dividend distribution refers to distributing dividends by increasing the insured amount every year during the whole insurance period. Once the increased insured amount is declared as a dividend, it shall not be cancelled. An insurance company that adopts the method of increasing dividend distribution can pay the last dividend in cash when the contract is terminated.

Investment linked insurance

Investment-linked insurance is a new life insurance product that combines life insurance with investment. Definition of linked insurance. According to the regulations of China's insurance regulatory authorities, investment-linked insurance refers to life insurance products with insurance protection function and at least a certain asset value in an investment account. The investment account of investment-linked insurance must be a fund account with assets managed separately. The investment account is divided into equal units, and the unit value is determined by the number of units and the market value of assets or portfolios in the investment account. The insured can choose his own investment account, and the investment risk is entirely borne by the insured. Unless there are special provisions, there is no creditor-debtor relationship between the investment account of an insurance company investing in linked insurance and other assets or other investment accounts it manages, and it does not bear joint liability. The policy cash value of investment-linked insurance products matches the assets in a separate investment account, and the cash value is directly linked to the investment performance of assets in a separate account, and there is generally no minimum guarantee. Generally speaking, the assets in the investment account are not affected by the remaining liabilities of the insurance company. Once the capital gain or loss occurs, whether it is realized or not, it will be directly reflected in the cash value of the policy. Different investment accounts can invest in different investment tools, such as stocks and bonds. Investment accounts can exist externally or be set up by the company itself. In addition to all kinds of special funds for policyholders to choose from, it is also very popular for life insurance companies to establish principles and balance or management funds for portfolio investment. Under the agreed conditions, policy holders can freely switch between different funds without paying extra fees.

Main characteristics of investment-linked insurance products. According to the international insurance market experience and the relevant regulations of China Insurance Regulatory Commission on investment-linked insurance products, the main characteristics of investment-linked insurance products are as follows: ① Investment account setting. Investment linked insurance has a separate investment account. After receiving the insurance premium, the insurance company will transfer part or all of the premium into the investment account according to the prior agreement and convert it into an investment unit. An investment unit is a unit of measurement designed to facilitate the calculation of the value of an investment account. The investment unit has a certain price, and the insurance company calculates its account value according to the number of investment units under the policy and the corresponding investment unit price. ② Insurance liability and insurance amount. As an insurance product, investment-linked insurance has similar insurance liabilities to traditional products, including basic insurance liabilities such as death, disability payment and survival insurance, and some products also include insurance liabilities such as insurance premium exemption, disability insurance and major diseases. China CIRC stipulates that investment-linked insurance products must contain one or more insurance liabilities. There are two ways to design the amount of death insurance for investment-linked insurance: one is to pay the larger amount of insurance and the value of investment account (method A); The other is to pay the sum of the insurance amount and the value of the investment account (method B). The death insurance amount of method A is unchanged at the beginning of the policy year, and fluctuates with the investment account value when the investment account value exceeds the insurance amount. The death insurance amount of method B changes with the fluctuation of the investment account value, but the net risk insurance amount (the difference between the death insurance amount and the investment account value) remains unchanged. China Insurance Regulatory Commission's Actuarial Provisions on Individual Investment Linked Insurance stipulates that investment linked insurance products "shall have a risk coverage ratio greater than zero within the validity period of the insurance contract". ③ Insurance premium. The compensation mechanism of investment-linked insurance has certain flexibility. In terms of design methods, investment-linked insurance has two payment mechanisms: one is to increase the premium holiday on the basis of fixed payment, that is, to allow the insured not to pay according to the agreed date, but the policy is still valid, so as to avoid the invalidation of the insurance contract due to the grace period exceeding 60 days. In addition, it also allows the insured to pay extra insurance premium at any time in addition to the agreed insurance premium, which increases the flexibility of the product. The other way is to cancel the concepts of payment period, payment frequency and payment amount, so that the insured can pay any amount of insurance premium (with the minimum amount limit) at any time and enter the investment account according to the agreed calculation method. This method is the most flexible for customers, but it reduces the controllability and predictability of insurance company's premium payment, and at the same time improves the requirements for internal operating systems. 4 charge. Compared with traditional non-dividend insurance and dividend insurance, investment-linked insurance is quite transparent in terms of fees. The insurance company has explained in detail the nature and purpose of the deduction, and the insured can inquire at any time through the computer terminal. In China, the fees that can be charged for investing in linked insurance products include: initial fees, that is, fees deducted before insurance premiums enter personal investment accounts; Bid-ask price difference, that is, the price difference between the insured buying and selling investment units; Risk insurance premium, that is, the guarantee fee of the policy risk insurance amount; Policy management fee refers to the service management fee charged to the insured for maintaining the validity of the insurance contract; Asset management fee, that is, the fee charged according to a certain proportion of the net asset value of the account; Handling fees, that is, the fees charged by insurance companies when they provide services such as partial collection and account conversion; Refund of premium, that is, the fee charged when the policy is surrendered or partially charged to make up for the unamortized policy cost.

Characteristics of investment-linked insurance products in China. China's investment-linked insurance products have the following characteristics: ① products must contain one or more insurance liabilities; ② The product is connected to at least one investment account; ③ Insurance protection risk and expense risk shall be borne by the insurance company; (4) Separate management of investment account assets; ⑤ The policy value is determined according to the number of units in each investment account and its unit value; ⑥ All net investment gains (losses) generated by the assets in the investment account corresponding to a certain policy should belong to the policy; ⑦ The insurance coverage of the policy shall be determined at least once a year; Today, the value of the policy should be determined at least once a month.

Universal insurance

Universal insurance is a kind of life insurance with flexible payment, adjustable coverage and non-binding. Definition of universal insurance. After paying a certain amount of down payment, universal insurance policy holders can choose to pay any amount of premium at any time according to their own wishes. As long as the cash value of the policy is enough to pay the related expenses of the policy, sometimes even the payment can be stopped. Moreover, the insured can increase the insured amount on the premise of insurability, or reduce the insured amount according to their own needs.

The operation of universal insurance is highly transparent. The insured can know the internal operation of the policy, and can get the description of the expected results of the interaction between the relevant factors of the policy, such as premium, death payment, interest rate, mortality rate, expense rate and cash value. However, the transparency of policy management does not mean that the insured can accurately estimate the value of the policy, but can understand the control of the policy funds. An important factor in the transparency of universal insurance is that the cash value and net risk insured amount of its policy are calculated separately, that is, they are not binding. The cash value of the policy varies with the annual premium payment, cost estimation, mortality rate and interest rate. The sum of net risk protection and cash value is the total death benefit. Judging from the process of universal insurance management, the insured pays a down payment first. There is a minimum premium for the first installment, and all expenses for the first installment must be deducted from the premium. Secondly, according to the age of the insured, the amount of death payment calculated according to the insured amount, and some additional preferential conditions (such as variable premium) should be deducted from the premium. The distribution of death benefits is uncertain, which is often lower than the highest level expected by the policy. After deducting these expenses, what remains is the initial cash value of the policy. This part of the value is usually accumulated at the end of the period according to the new investment interest rate and becomes the ending cash value. Many universal insurance companies charge higher first-year refund premiums to avoid premature termination of policies. In the second cycle of the policy (usually 1 cycle is 1 month), the cash value at the beginning of the policy is the cash value at the end of the previous cycle. In this cycle, the insured can pay the premium according to their own conditions. If the initial premium is enough to pay the expenses of the second cycle and the share of death compensation, the insured may not pay the premium of the second cycle. If the cash value in the early stage is insufficient, the policy will be invalid due to insufficient premium payment. The balance of cash value at the end of the previous period and the current premium should also be deducted from the distribution of death benefits and expenses in this period, and the balance is the balance of cash value at the beginning of the second period. This part of the balance is accumulated to the end of the period according to the new investment interest rate, which becomes the ending cash value balance of the second cycle. Repeat this process. Once the cash value is not enough to pay the share and expenses paid for death, and the new premium is not paid, the policy will be invalid.

Main features of universal insurance products. The characteristics of universal insurance products are mainly reflected in the following aspects: ① Death compensation mode. Universal insurance mainly provides two ways to pay for death, and the insured can choose at will. These two modes are customarily called mode A and mode B. Mode A is a way of balanced payment; Mode B is a mode that changes directly with the cash value of the policy. In Mode A, the death payment is fixed, and the net risk insurance amount is adjusted every period, so that the sum of the net risk insurance amount and the cash value becomes a balanced death payment amount. In this way, if the cash value increases, the net risk insurance amount will decrease by the same amount; On the other hand, if the cash value decreases, the net risk insurance amount will increase by the same amount. This method is similar to other traditional insurance policies with cash value payment. Mode B stipulates that death payment is the sum of the net risk insurance amount and cash value after balance. In this way, if the cash value increases, the death payment will also increase by the same amount. In Mode A, in order to prevent the cash value from exceeding the stipulated insurance amount, some insurance companies stipulated the minimum net risk insurance amount, thus increasing the total death compensation amount. China Insurance Regulatory Commission's Actuarial Provisions on Individual Universal Insurance stipulates that if the insured dies within the validity period of the universal insurance contract, the insurance company can pay the insurance premium according to the insurance amount of the insurance year at the time of death, or the sum of the insurance amount and the personal account value at that time can be paid as death. During the validity period of the insurance contract, the amount of risk insurance should be greater than zero. (2) premium payment. The insured of universal insurance can pay the premium flexibly. Insurance companies generally stipulate the maximum and minimum amount of each payment. As long as it meets the requirements of the policy, the insured can pay the premium at any time, with no limit. Most insurance companies only stipulate that the first premium must be enough to cover the first month's expenses and death expenses, but in fact, the first premium paid by most policyholders will be much higher than the prescribed minimum amount. This flexible payment method also brings the disadvantage that universal insurance is easy to fail, because the universal insurance policy cannot force the insured to pay a fixed premium. In order to solve this problem, the general practice of insurance companies is to send a premium reminder notice to the insured according to the target premium selected in the policy plan to remind them to pay. In addition, the insured usually agrees to issue monthly pre-authorized withdrawal documents from his bank account. Another way is that the insurance company sends a premium bill to the insured according to the premium amount planned by the insured, and the insured pays the premium according to the bill amount. ③ Settlement interest rate. Insurance companies set up separate accounts for universal insurance. First of all, the universal insurance policy can provide the lowest guaranteed interest rate. The settlement interest rate of universal insurance shall not be higher than the actual investment return rate of a separate account, and the difference between them shall not be higher than 20%. Secondly, when the actual rate of return of a single account is lower than the minimum guarantee rate, the settlement interest rate of universal insurance should be the minimum guarantee rate. Third, insurance companies can decide the frequency of settlement interest rates by themselves. 4 charge. The fees that can be charged by the universal insurance policy include: the initial fee, that is, the fee deducted before the premium enters the personal account; Risk insurance premium, that is, the guarantee fee of the policy risk insurance amount; Policy management fee, that is, the service management fee charged to the insured in order to maintain the validity of the insurance contract; Handling fee, that is, the relevant management fee charged by the insurance company when providing some services such as collection; Refund of premium, that is, the fee charged by the insurance company to make up for the unamortized policy cost when the policy is surrendered or partially collected.

annuity insurance

Annuity insurance refers to life insurance in which the survival of the insured is the condition for payment of insurance benefits, and the survival insurance benefits are paid in installments at agreed time intervals. Among them, pension annuity insurance refers to annuity insurance for the purpose of old-age security. The insurance contract stipulates that the payment age of the insured's survival insurance money shall not be lower than the retirement age stipulated by the state, and the time interval between two payments shall not exceed one year. For life insurance that pays the survival benefits in installments as agreed, the interval of paying the survival benefits in installments shall not exceed 1 year (including 1 year). According to different standards, annuity insurance can be divided into different types. According to the payment method, it can be divided into wholesale annuity and futures annuity.

Lump sum annuity refers to annuity insurance in which the premium is paid in one lump sum, that is, after the insured pays the annuity premium in one lump sum, the annuity recipient receives the annuity on schedule at the agreed time.

The term "annuity" as mentioned in these Measures refers to the annuity insurance in which the insurance premium is paid by installments before the payment date, that is, the insured pays the insurance premium by installments, and then the annuity recipient receives the annuity on schedule from the agreed annuity payment start date. According to the number of insured persons, it can be divided into individual annuity, joint annuity, last survivor annuity and joint survivor annuity. 1. Personal annuity Personal annuity refers to annuity insurance with the survival of the insured as the condition of annuity payment. 2. Joint annuity Joint annuity refers to annuity insurance with the survival of two or more insured persons as the condition for annuity payment. The payment of this annuity lasts until the first death. 3. Last Survivor's Annuity The last survivor's annuity refers to the annuity insurance with the condition that at least one of two or more insured persons is alive and the payment amount remains unchanged. The payment of this annuity continued until the death of the last survivor. 4. Joint annuity and survivors' annuity

Joint and Survivor Annuity refers to annuity insurance with at least one of two or more insured persons alive as the payment condition, but the payment amount is adjusted with the decrease of the number of insured persons. The payment of this annuity lasts until the death of the last survivor, but the payment amount is adjusted according to the number of the insured who are still alive.

According to whether the payment amount changes, it can be divided into fixed annuity and variable annuity.

1. Fixed annuity refers to annuity insurance that pays a fixed amount of annuity every time. The payment of this annuity is fixed and does not change with the change of investment income level.

2. Variable annuity refers to annuity insurance that adjusts annuity payment according to the investment income level of capital account. This kind of annuity is designed for the disadvantages of the fixed annuity's declining protection level under inflation.

According to the payment start date, it can be divided into immediate annuity and deferred annuity. 1. Spot annuity refers to annuity insurance in which the insurer pays the annuity on schedule after the insurance contract is established. 2. Deferred annuity refers to annuity insurance in which the insurer begins to pay the annuity after a certain period of time or the insured reaches a certain age after the insurance contract is established.

According to the payment method (or payment period), it can be divided into life annuity, minimum guarantee annuity and fixed-term survival annuity. Lifelong annuity refers to the annuity insurance that the annuity recipient can receive the agreed annuity for life until his death. Minimum guaranteed annuity is an annuity insurance to prevent pensioners from dying prematurely and losing their right to receive an annuity. The minimum guaranteed annuity is divided into two categories: determined payment annuity and return annuity. Determining the payment of annuity stipulates the minimum guarantee period for receiving annuity, and the insured can get annuity payment whether he is alive or not within the specified period. Annuity return refers to the annuity insurance in which the insurer returns the cash difference in one lump sum or in installments when the payee dies and the total annuity received is lower than the annuity purchase price. 3. Term survival annuity is an annuity insurance with the condition that the insured survives within a specified period. The payment of this annuity is limited by a certain number of years. If the insured has been alive, the annuity payment will expire; If the insured dies within the prescribed time limit, the annuity payment will stop immediately.