The structure of life insurance

Traditional insurance products are those with fixed predetermined interest rates, and the products do not have the dividend function. These products mainly include fixed predetermined interest rate in the form of whole life insurance, double insurance, pension insurance, accident insurance, disease insurance, etc., to meet the needs of policyholders for personal protection, personal pension, children's education, health, accident and other insurance needs; investment with-profits insurance products are insurance products with dividend payment function, including participating insurance, universal life insurance and investment-linked insurance, which can meet the needs of customers for more investment returns on the basis of covering the basic protection. 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, life insurance companies usually give customers several investment options, the customer to make their own investment decisions. You need to be reminded that the customer has to bear the investment risk by himself. (Note) The purchase of life insurance is a long-term investment, the short-term investment status does not represent 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 operation and management level of the insurance company, which includes a detailed examination of the profit level of the insurance company, its past investment performance, brand image, and so on.

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