How to distinguish whether the insurance is investment type or traditional type

Strictly speaking, only investment-linked (investment-linked) and universal life insurance (usually with the words "universal life" in the name of the product) can be regarded as an investment type, and the dividend insurance can not be regarded.

But later, in order to increase the scale of premiums, insurance companies have developed a lot of low-protection insurance based on the participating type, these are considered quasi-investment insurance.

The distinction is simple:

1) Look at the ratio of premiums to the amount of coverage: investment-type coverage is lower, the general death of the amount of coverage is only a return of the premiums paid or the amount of coverage of 105%, 110% or so, in short, it is just a little higher than the premiums you pay.

2) insurance time is relatively short: the normal traditional type of insurance at least 10 years, many are insured for decades or insured for life and so on, and the investment type of insurance is generally the longest 10 years (the investment insurance and universal insurance is a special case, these two kinds of insurance is strictly speaking no fixed insurance time) most of the 2, 3, 5, 8 years and so on short-term.