What are the similarities and differences between participating insurance and traditional life insur

Traditional insurance products are insurance with a fixed predetermined interest rate, and the product does not have a dividend function. This type of product mainly includes whole life insurance, endowment insurance, endowment insurance, accident insurance, illness insurance, etc., in the form of fixed interest rates, to meet the policyholder's insurance needs for personal protection, personal pension, children's education, health, accident and so on; Investment participating insurance products are insurance products with participating functions, including participating insurance, universal insurance and investment-linked insurance, which mainly meet the needs of customers for more investment returns on the basis of basic protection.

Compared with traditional products, participating insurance is closer to traditional products in terms of insurance structure and form, which is actually an improvement of traditional products, so that customers can share part of the operating profits of insurance companies while obtaining protection. Universal life insurance is a flexible, variable premium and sum assured, and you can adjust the payment time and size of the sum insured according to your needs. Investment-linked insurance is to provide basic insurance protection, more as a fund manager, the premium paid by the customer into the personal account, the funds in the personal account after deducting the current dangerous premium, management fees will be used for independent investment, life insurance companies usually give customers several investment options, customers make their own investment decisions.

It is important to note that clients do so at their own risk. Note: Buying life insurance is a long-term investment, and short-term investment conditions are not indicative of the future, so it is particularly important to choose an insurance company.

The main factor determining the value of investment products will be the level of operation and management and service capabilities of insurance companies. When choosing investment insurance, we should pay more attention to the following two aspects on the basis of carefully understanding the insurance liability and cost level of the product itself: First, the strength of the insurance company.

Powerful insurance companies often have certain advantages in terms of resources, and their operations will be relatively stable. The second is the operation and management level of the insurance company, which includes a detailed investigation of the profit level of the insurance company, past investment performance, brand image, etc.

The difference between participating insurance and traditional life insurance is that the attributes are different, the former has a dividend function, and the latter does not have a dividend function; The similarity is that the protection function is similar, and most insurance products with dividends (life insurance, annuity insurance) and other products can protect against death like traditional life insurance.

Participating insurance refers to a kind of life insurance in which the insurance company distributes the distributable surplus of the previous fiscal year to customers in the form of cash dividends or value-added dividends in a certain proportion after the end of each fiscal year.

Participating insurance generally appears in the form of annuity insurance or whole life insurance, and the advantage of buying participating insurance is that there is a certain chance of obtaining dividends from the insurance company.

However, there is great uncertainty about the dividends of participating insurance, because insurance companies will not be completely transparent about their earnings, and consumers cannot know how much distributable surplus is used for dividends, so whether there are dividends and how many dividends can be distributed are naturally uncertain.

Traditional life insurance refers to life insurance that only has protection and savings functions. The most representative traditional life insurance is term life insurance and ordinary whole life insurance.

Among them, term life insurance is a branch of life insurance, and this type of product only covers a term but not a lifetime. Term life insurance is largely for the family, and its value is to help the family resist life's most brutal death risk.

Term life insurance is best suited to a family with a small budget, which is the income of the entire family**, and can also be used to transfer the financial risk with the insurance money paid out by term life insurance in the event of a fall.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

1) Participating insurance refers to the right of the policyholder to enjoy the distributable surplus of the insurance company's participating insurance business.

2) Traditional life insurance (term life insurance): refers to life insurance that only has protection and savings functions.

Detailed explanation:

Participating insurance originates from the fixed interest rate of the policy, and the risk of changes in market returns for a long time in the future is shared between the policyholder and the insurance company. It refers to a kind of life insurance in which the insurance company distributes the distributable surplus of the participating insurance in the previous fiscal year to the customer in the form of cash dividends or value-added dividends in a certain proportion after the end of each fiscal year. Participating insurance is an effective means for life insurance companies around the world to avoid interest rate risks and ensure their own sound operation.

Compared with traditional protection life insurance policies, participating policies provide policyholders with non-guaranteed insurance benefits, and the distribution of dividends will also affect the insurer's debt level, investment strategy and solvency.

Life insurance is one of the most important insurance varieties, it is based on the life of the person as the subject of insurance, life and death as the insurance of the insured accident, also known as life insurance. Life insurance is a type of life insurance. As with all insurance businesses, the insured passes the risk to the insurer, accepts the insurer's terms and pays the premium.

However, unlike other insurances, life insurance passes on the risk of survival or death of the insured.

Participating insurance is a life insurance product with investment attributes. Like traditional life insurance, it provides customers with lifelong protection, but unlike it, participating insurance companies will distribute a part of the profits to customers, providing protection and returning on investment. Therefore, participating insurance is a product that belongs to the category of life insurance.

Participating insurance has its own advantages in terms of investment returns. Since the insurance company will distribute a portion of the profits to the customer, the return on investment for the customer is also relatively high. In addition, participating plans offer flexible coverage options and premium payment options, as well as higher coverage amounts and coverage periods.

Therefore, for customers who have certain investment demands and protection needs, it is a more cost-effective choice to choose participating insurance.

Although participating insurance is a life insurance product, customers also need to understand the risks before making a purchase. Due to the higher proportion of investment in participating insurance, the risks involved are also relatively large. Socks customers should choose according to their own risk tolerance and needs, and understand the details of the product, so as not to unnecessarily lead to financial losses.

Participating insurance.

Definition: Participating insurance.

It refers to a life insurance product in which the insurance company distributes the surplus of its actual operating results to policyholders according to a certain proportion compared to the pricing assumption.

Participating insurance refers to a life insurance product in which the insurance company distributes a certain percentage of the surplus from its actual operation to the policyholders compared to the surplus of the pricing assumption.

Investment-linked insurance is an abbreviation for investment-linked insurance. It refers to a life insurance product that includes insurance protection functions and has a certain asset value in at least one investment account. The characteristic is that there is no guarantee at the bottom and no cap at the top. The stakes are high.

Universal insurance is a non-binding life insurance with flexible payment and adjustable sum insured. Universal insurance policyholders can choose to pay any amount of premium at any time they wish after paying a certain amount of initial premium. As long as the cash value of the policy is sufficient to cover the relevant costs of the policy, it is sometimes possible to withhold the premium.

Moreover, policyholders can increase the sum insured on the premise of being insurable, or they can reduce the sum insured according to their own needs. It is less risky than investment-linked insurance. More transparent than participating insurance.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"