The one that reduces or surrenders the policy is better, and which one has the smaller loss, the red

Depending on your personal needs, if you want to reduce the sum insured to reduce the premium burden and don't want to lose your protection, then it will be better to choose to reduce your policy. If you feel that the insurance product you have purchased does not meet your needs and want to apply for other similar insurance products, you can choose to surrender the policy. However, it should be noted that there is a certain risk of loss when surrendered.

First of all, after we buy insurance, there will generally be a hesitation period of 10-15 days, during the hesitation period, the surrender of the policy, generally return the premium paid, there is no loss, but after the hesitation period, the cash value is generally returned, there may be losses.

The cash value of the insurance you just bought is often very low, and if you want to surrender the insurance at this time, the loss is relatively large. Reducing the policy is to reduce the basic sum assured and receive a corresponding cash value at the same time. After the policy reduction, the premium payable in the later period will also be reduced proportionally, and the payment pressure will be much less.

At the same time, the policy is still in effect, and the policy reduction can solve the problem of insufficient funds without losing the protection. In addition to the insurance reduction, there is a lot of insurance knowledge that you need to know, and you need to know about this article: Super Complete!

Everything you need to know about insurance is here.

Surrender means the termination of the insurance contract. When the cash value of the policy does not exceed the premium you have paid, there is a loss in surrendering the policy, so it is generally not recommended to surrender the policy easily. If the cash value is higher than the premium paid, if you want to surrender the policy, first prepare the application for termination of the contract, the insurance contract, ID card and other information, and apply to the insurance company for surrender

What are the details to pay attention to when surrendering an insurance policy?

Under normal circumstances, it is not recommended that you surrender the policy easily, if you want to surrender the policy because the insurance amount is insufficient, it is better to ask the insurance company if you can increase the insurance. Increasing the insurance is to increase the basic sum insured, and if the sum insured is increased, the protection will come up. If you are under a lot of pressure to pay premiums, then consult whether you can reduce the insurance and reduce the basic sum insured while still getting a sum of money to relieve the pressure.

Different types of insurance have different insurance needs, such as critical illness insurance usually needs more than 300,000 yuan, life insurance usually needs more than 500,000 yuan, etc., buy the right amount of insurance to meet your needs, read this article in detail to understand: how much insurance is appropriate? Let's talk about the doorway inside.

The following documents need to be prepared for surrender of life insurance:

Application for termination of contract;

insurance contracts; Proof of the policyholder's legal identity.

There are two types of surrender:

Cooling-off period surrender:

Cooling-off period surrender refers to the surrender of the policy by the policyholder within the cooling-off period agreed in the contract. Generally, insurance companies stipulate that the policyholder has a cooling-off period of 10 days after receiving the policy. Usually, the insurance company will refund the entire premium after deducting the cost of production.

Normal Surrender: Surrender beyond the cooling-off period is considered as normal surrender. Policies that have received insurance benefits are not eligible for surrender.

Normal surrender generally requires that after a certain number of years of the policy, the policyholder can apply for termination, and the life insurance company should refund the cash value of the policy within 30 days from the date of receipt of the application. The cash value of a policy is the amount of money that can be returned in the event of termination or surrender of the life insurance contract.

Which loss is smaller, reduction or surrender, mainly depends on the actual situation.

It is better to surrender the policy during the cooling-off period. If the policy is surrendered during the hesitation period, the loss is basically negligible, and there is no need to pay for the follow-up, clean and neat, if it is a reduction, that is, the insurance company applies for a proportional surrender to reduce the amount of protection, but the follow-up still needs to be paid. It is more cost-effective to reduce the policy after the cooling-off period.

The insurance contract has passed the hesitation period, and the purchase time is not long, so if you surrender the insurance policy at this time, you will inevitably have to bear a large loss. However, if the reason why you want to surrender the policy is not because of the insurance product, but because you want to surrender the policy due to the pressure of paying the premium, then it is more appropriate to choose to reduce the policy.

The so-called surrender is the surrender of the policy, the insurance company will refund all or part of the premium, and some insurance products are refunded the cash value of the policy, and the policy is invalid; Reduction is to reduce the sum insured, apply for surrender according to a certain percentage, and reduce the amount of insurance, which can reduce the pressure on the policyholder to pay premiums, but at the same time continue to enjoy protection.

Hello this friend, if you want to choose to surrender the policy, you can see here: "How to surrender the most cost-effective insurance if you buy the wrong insurance?" 》

Next, Daddy will introduce the policy reduction and surrender.

1. Surrender. Surrender means that the policy is surrendered, and the insurance company refunds part or all of the premium, and the insured loses protection. Surrender can indeed achieve the effect of cutting through the mess quickly, but the loss that needs to be borne is larger.

If the policy is surrendered during the cooling-off period, the loss is basically negligible. If you surrender the policy after the cooling-off period, the loss will be relatively large, and the insurance company will generally only refund the cash value of the policy, and the cash value of the policy in the early stage of insurance is far less than the premium you paid.

2. Reduction of insurance. Reduction means reducing the sum insured, that is, the insurance company applies for a proportional surrender of the policy and reduces the amount of coverage.

This method can reduce the pressure of payment and still enjoy protection, but the amount of protection is reduced.

How do I surrender my policy correctly?

1.The surrender loss is small during the cooling-off period.

As mentioned earlier, surrender during the hesitation period, the insurance company will refund the premium paid in full unconditionally, and there is basically no loss in surrender at this time.

2.Surrender after the waiting period for new products.

Once we have the determination to surrender the policy, then the first thing is to supplement the corresponding protection for ourselves, because after the surrender, if there is no new product to provide protection, then the consumer will have a gap in protection.

Therefore, the surrender of the policy should try to wait until the waiting period of the new product before returning, because even if the insured is unfortunately insured during this period, then you can still use the product you intend to surrender to make a claim.

However, if the policy is surrendered directly, and the new product is in the waiting period, the insurance company that buys the new insurance will not be liable for compensation during this period.

3.It is more cost-effective to surrender the policy after the grace period.

The grace period of insurance is 60 days after the consumer stops paying premiums, during which time the consumer can still get insurance protection even if the consumer does not pay the premium, and the insurance company will also pay the insurance during this period.

If the consumer has already made up his mind to surrender the policy, he or she may wish to wait until the grace period is over before surrendering the policy, which is equivalent to enjoying a longer protection period.

Surrender is more cost-effective than reducing the amount of surrender.

1. Surrender and reduction payment are actually not very cost-effective for the policyholder, and reduction payment means that the remaining premium is not continued to be paid, and the cash value of the policy is not required.

Instead, the current value of the slag sedan car is used as the premium to be paid for the follow-up policy, and the protection in this situation is still effective, but the sum insured of the policy is still effective.

will be reduced, and the role of the transfer risk of protection will be relatively reduced. In most cases, the insurance company will not directly surrender the premium, but can only return the cash value of the policy, and the cash value of the policy will be relatively low in the first few years, and there will be a loss in surrender, of course, if it is in the hesitation period.

If you surrender the policy, there will be no loss, and this situation is undoubtedly the most cost-effective.

2. Under normal circumstances, Changliang pays on a regular basis, invests and manages money.

The nature of the insurance products and other conditions have the function of reducing the amount of payment, with annuity insurance.

You can check the details of the contract to see if the policy has the function of reducing the amount of payment, or contact the customer service of the insurance company to ask for confirmation, and you can check the current cash value of the policy through the contract or customer service inquiry.

Extended Information: When is the right time to surrender the policy:

If it is surrendered during the hesitation period, the insurance company will deduct the cost of 10 yuan within the cost of work, and refund all the premiums paid, if it is within the hesitation period, there is no need to consider the reduction to pay off, direct surrender is the most cost-effective, but if it is more than the hesitation period to surrender, it is a normal surrender, you must know that normal surrender is equivalent to breaking the contract, and the party who actively breaks the contract will definitely have economic losses.

After a certain period of time, the insurance company will return the cash value of the policy within 30 days from the date of receipt of the application.

The difference between insurance reduction and surrender: insurance reduction is to reduce the amount of insurance, such as reducing the amount of insurance from 100,000 yuan to 50,000 yuan, thereby reducing the amount of insurance. In the event of an insured event at a later date, the applicant will still receive the insurance benefits, but the amount will be reduced.

Surrender is a full refund of the premium. Don't pay any more in the follow-up, and you won't be protected. When the interest on the insurance ends, the policy ends, that is, in the future you have nothing to do with the insurance company.

Surrender means that the policy will be refunded, the insurance company will refund part or all of the premium, and the insured will lose his protection. An insurance cut can also be referred to as a partial surrender. As the name suggests, it is to reduce the amount of insurance.

According to the applicant's application, the insurance company complies with the regulations and can reduce the insurance cost and deduct the refund insurance premium.

Extended Materials. 1.Once the policy is withdrawn, the insurance company will refund some or all of the premium, and the insured will lose protection.

Surrender can really clean up the mess once and for all, but it comes with huge losses. If the policy exits during the hesitation period, the losses are essentially negligible. If you surrender the policy after hesitation, the loss will be relatively large.

Insurance companies usually only return the cash value of the policy. The cash value of the insurance policy in the early years is much lower than the premium you paid. The reduction of insurance is to reduce the amount of insurance, that is, the insurance company applies for surrender on a pro-rata basis, reducing the amount of guarantee.

This reduces the pressure on payments and allows you to enjoy guarantees, but the amount of guarantees is reduced. In this way, just like surrendering the policy, there will also be losses. If you buy an insurance product that really doesn't meet your own protection needs, and is only hesitating, you can choose to surrender the policy in this case.

If the insurance contract has passed the cooling-off period, but the purchase time is not long, and the reason you want to give up is not the insurance product, but the pressure to pay for it yourself, so you can choose to reduce the insurance. As for the small losses, it is mainly based on the actual situation.

2.Situation 1: Buying the wrong product, for example, Student A wants to buy a covered critical illness insurance for his child.

This may be because he is not good enough in his work. I've heard that insurance can also save money on education. As a result, he finally bought a general insurance + additional critical illness insurance.

This is a classic example of buying the wrong product. Another example is an average middle-class family with a large number of mortgages and car loans and little savings on hand, who want to manage their money by buying insurance. Personally, I think this is also a case of buying the wrong product.

Situation 2: When many people buy insurance, the insurance amount is very low, they are greedy for 100%, or they have to buy whole life insurance. Therefore, the amount of insurance will not be too high for the same budget.

The Shenlan Army can also cope with the situation of preparing to purchase 100,000 and 200,000 critical illness insurance. In times of sharp inflation, the amount of insurance exceeding 100,000 and 200,000 cannot play a role in risk transfer at all. Scenario three:

The budget of ordinary families is too high, and the purchase of insurance generally accounts for about 10% of the family's annual income, that is, tens of thousands of yuan.

<><Advantages of Surrender:

The advantage of surrender is that you can quickly terminate the insurance contract, recover the insurance premium, and actively manage your finances. Especially for those who have purchased insurance products that are not suitable for them or have accumulated declining insurance products, it is very wise to surrender the policy. Some people may no longer need their previous insurance due to a change in their circumstances (e.g., job change, home change, etc.), so surrendering the policy can help them** the cost of the insurance they have already paid.

Disadvantages of Surrender:

However, the surrender of the policy also has its drawbacks. First of all, the surrender fee charged by the insurance company is higher, which may even offset the refunded insurance cost. Secondly, surrender may have an impact on an individual's credit rating, especially for those who purchase long-term insurance products, and too many untrustworthy records due to surrender will have an impact on an individual's financial planning and life.

Advantages and disadvantages of reduced payment:

The advantage of reducing the amount of insurance is that it can keep the original insurance contract and do not need to pay a high surrender fee. At the same time, continuing to pay premiums can also provide some protection for the insurance product. In addition, the reduction can also be based on the individual's changing conditions, choose the appropriate amount of insurance for protection, in order to better meet their own needs.

However, there are some drawbacks to the reduction settlement. First of all, the insurance product with reduced payment may not meet the actual needs of the individual, which may lead to insufficient protection when insurance compensation is required. Secondly, the reduced premium will be lower than the original contract, but it needs to be paid continuously, which may increase the financial burden on the family, and during the payment period, it is not possible to withdraw or repurchase similar insurance products.

In summary, the choice of surrender or reduction depends on the specific circumstances of the individual. If you have purchased too many or unsuitable insurance products, or if you do not need insurance coverage at all, it is a wise choice to surrender the policy. If you need to continue to be covered, you can still afford to pay the rock ridge imitation fee within the payment period, and the insurance contract can meet the actual needs, then it is a better option to pay the reduced amount.

In short, whether you choose to surrender or reduce the amount of your policy, you need to think carefully and make an informed decision based on your financial situation and insurance needs.