What is the difference between investment participating insurance and traditional insurance?

Traditional insurance products are those with fixed predetermined interest rates, which do not have the function of dividends. These products mainly include fixed predetermined interest rate in the form of whole life insurance, whole life insurance, pension insurance, accident insurance, sickness insurance, etc., to meet the policyholder's needs for personal protection, personal pension, children's education, health, accidents and other insurance needs; investment with-profits insurance products are insurance products with dividends, including participating insurance, universal life and investment-linked insurance, mainly to meet the needs of customers to cover the basic security on the basis of more investment returns. The investment with-profits insurance products are insurance products with profit-sharing function, including participating insurance, universal insurance and investment-linked insurance, which mainly meet the needs of customers for more investment returns on the basis of covering basic protection.

Compared with traditional products, with-profits insurance is closer to traditional products in terms of its structure and form, and is actually an improvement on traditional products, allowing customers to share part of the insurer's operating profit while obtaining protection. Universal life insurance, on the other hand, is a flexible, variable premium coverage type of insurance, where you can adjust the payment schedule according to your needs, as well as adjust the size of the coverage. Investment-linked insurance is to provide basic insurance protection, more as a money manager, the premiums paid by the customer into a personal account, the funds in the personal account will be used for independent investment after deducting the current hazard premiums, management fees, the life insurance company will usually give the customer several investment options, the customer to make their own investment decisions. What you need to be reminded of is that customers have to bear the investment risk themselves.

(Note) The purchase of life insurance is a long-term investment, the short-term investment status is not representative of the future, therefore, the choice of insurance company is particularly important.

The main factor determining the value of an investment-based product will be the level of the insurance company's business management and service capabilities. When choosing investment insurance, you should pay more attention to the following two aspects on the basis of careful understanding of the insurance responsibility and cost level of the product itself: first, the strength of the insurance company. A strong insurance company often has certain advantages in resources and its operation will be relatively stable. The second is the level of operation and management of the insurance company, which includes a detailed examination of the profit level of the insurance company, past investment performance, brand image and so on.