The difference between traditional insurance and participating insurance

Many prudent investors have developed a strong interest in participating insurance sold over the counter by banks, and the rebound in the stock market has also made investors pay attention to investment insurance again.

Reader Mr. Shi sent an email to ask, what is the difference between investment dividend products and traditional insurance products?

What should you pay attention to when purchasing?

This issue’s consultation: China Life Financial Management Expert Basic Protection + Investment Return Traditional insurance products are insurance with a fixed predetermined interest rate, and the product does not have a dividend function.

Such products mainly include whole life insurance, endowment insurance, pension insurance, accident insurance, disease insurance, etc. in the form of fixed predetermined interest rates, which meet the insurance needs of policyholders for personal protection, personal pension, children's education, health, accidents, etc.; investments are divided into dividend categories

Insurance products are insurance products with participating functions, including participating insurance, universal insurance and investment-linked insurance, which mainly meet customers' needs for more investment returns on the basis of basic protection.

China Life has settled its lawsuit in the United States in the past five years. Ping An's chief investment officer has resigned. The compensation for a single person in the U.S. car accident will reach 3 million. Some insurance companies are planning to lay off some people. Take a look at the track of increasing insurance capital and watch the trend of investment in 2009. A direct look at the 2009 "National Insurance Conference" and

Compared with traditional products, participating insurance is closer to traditional products in terms of insurance structure and form. It is actually an improvement on traditional products, allowing customers to receive protection while also sharing part of the insurance company's operating profits.

Universal life insurance is a flexible type of insurance with variable premiums and insured amounts. You can adjust the payment time and the insured amount according to your needs.

Investment-linked insurance acts more as a fund manager when providing basic insurance protection. The premium paid by the customer goes into the personal account. The funds in the personal account will be used for independent investment after deducting the current risk premium and management fee. Life insurance companies

Clients are usually given several investment options, and clients make their own investment decisions.

You need to be reminded that clients bear their own investment risks.

Consider two factors when choosing. Buying life insurance is a long-term investment, and short-term investment conditions do not represent the future. Therefore, choosing an insurance company is particularly important.

The main factor that determines the value of investment products will be the level of management and service capabilities of the insurance company.

When choosing investment insurance, you should pay more attention to the following two aspects on the basis of a careful understanding of the insurance liability and cost level of the product itself: First, the strength of the insurance company.

Strong insurance companies often have certain advantages in resources and their operations will be relatively stable.

The second is the operating and management level of the insurance company, which includes a detailed examination of the insurance company's profit level, past investment performance, brand image, etc.