What are the advantages and disadvantages of universal life insurance products compared to traditional life insurance products?

Consultation: My first time to buy insurance, there are business only tell me the benefits of universal life insurance but not tell me the disadvantages of universal life insurance, I would like to ask the experts here, please tell me what are the disadvantages of universal life insurance? Consultant: yyy (Shenzhen) Expert Answer: Dongguan Reliance Life military universal life insurance and traditional insurance compared to the not so good place is: life insurance attached to the protection of critical illness insurance fee is the implementation of the natural rate, that is to say, the same amount of coverage under the older the deduction of the protection of the fee the higher, unless the age of the time to reduce the amount of life insurance and critical illness insurance coverage. China Life's Wu Wenbing in Shenzhen, one, the rate of return is greatly reduced. Second, withdrawing money to pay a handling fee. Compared with general insurance products, liquidity, liquidity is repeatedly emphasized as a major advantage of universal insurance, but the realization is required to pay a handling fee. Usually, insurance companies will allow universal life policyholders to withdraw cash from their investment accounts, but they must retain the agreed minimum amount. Customers can follow certain procedures to withdraw a portion of the funds from their individual investment account without affecting the actual return on the remaining portion of the account. However, when spending cash from the investment account, the policyholder usually has to pay a certain fee to the insurance company as well. It is understood that different insurance companies have different charging policies and rates. If the policy is surrendered in the middle of the policy, only the cash value can be obtained, especially if the policy is surrendered in the first four or five years, even the total amount of premiums will not be returned. Third, it is not suitable for the elderly to invest. As the proportion of fees paid in the early stage of universal insurance is relatively large, or even single payment, it is very suitable for those who have unstable income. However, it is not suitable for elderly people over 50 years old to buy universal insurance. The reason is that universal life insurance is a kind of insurance that can only see the benefits of long-term investment, and it is difficult to see the benefits of short-term investment. Therefore, the elderly over 50 years old try not to buy universal insurance, and even people over 40 years old are not encouraged to buy universal insurance, and people over 60 years old are even more discouraged. Because these people buy other varieties of insurance instead more appropriate. Chen Shaohui, Shenzhen Reliance Life is not recommended to buy this type of insurance if you are buying insurance protection for the first time. This is because the more this coverage reaches the end, the higher the cost of the coverage. Of course, the plan may not show, but the actual is likely to occur in a state where the account is zero. Therefore, it is recommended that for the first time, it is advisable to buy a traditional insurance policy with lifetime coverage. The most fundamental role of insurance is protection. Shenzhen Ping An Life Jiang Hong equivalent coverage relative to traditional insurance, premiums are lower, and the payment is flexible, but with the increase in age, the cost of protection deductions will be more and more, there is uncertainty about the value of the policy, it depends on the amount of coverage and premiums selected when the insurance is commensurate with the amount of coverage and premiums, as well as the insurance company's investment capacity.

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