Features that universal life insurance has over traditional life insurance include

Universal life insurance, as a new generation of life insurance products, is indeed pleasing to the eye, but traditional life insurance and universal life insurance are designed for the needs of different customers and have their own characteristics. The ****similarity between the two is that they are both life insurance products, providing policyholders with basic life insurance protection for birth, old age, sickness, death and disability, while the differences are:

I. Risk-taking

Traditional life insurance in the insurance company and the customer signed the insurance contract, has been clearly stipulated in the expiration of the insurance period, or insurance accidents occur when the insurance company should pay the amount of insurance premium size. Its use of assets is more conservative and safety-oriented, and the return on assets is also centered on bank deposit interest. Under a traditional life insurance policy, even if the investment return is lower than the predetermined interest rate, the insurance company has to fulfill its obligation to pay, and the risk of asset utilization is entirely borne by the insurance company.

Universal life insurance is centered on marketable securities, the use of funds, the return is not fixed, generally higher, but may also be very low, the maturity of the insurance premiums and the payment of insurance accidents in the event of the insurance are not determined to ensure that this is a reflection of the risky nature of investment and financial management types of insurance. Therefore, the policyholder must bear the risk of capital gain, which is subject to the lower limit of the two-year residential fixed-term savings deposit interest rate promulgated by the People's Bank of China during the same period, i.e., there is a guaranteed minimum return.

II. Transparency

Traditional policies are designed in such a way that the flow of premiums is not disclosed to policyholders, who are unlikely to know how the premiums they pay are apportioned to various expenses.

Universal life insurance, on the other hand, is transparent in its operation, and the various uses to which premiums are allocated are publicly available. Not only that, but as a highly transparent insurance product, universal life insurance has individual accounts set up on a policyholder-by-policyholder basis for separate accounting, which policyholders can access at any time, and they receive an annual report.

III. Death Benefits

Traditional life insurance for death and total disability insurance benefits, is a fixed amount according to the contract;

Universal life insurance is non-fixed, but also double the amount of benefits, is the immediate amount of coverage and the date of the accident and the balance of the personal account of the sum.

Four. Returns

Traditional life insurance has a fixed amount of coverage and benefits that are contractually stated.

Universal life insurance returns are "capped and guaranteed," although the amount of return is directly related to the operating performance of the investment account, but the settlement rate is no less than the current bank interest rate for two-year residential time deposits.

V. Cash value

The so-called cash value refers to the value of life insurance policies with the nature of savings

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