The difference between universal insurance and participating insurance, the difference between unive

The difference between universal insurance and participating insurance mainly lies in the income distribution method and income stability.

1. Income distribution method.

First of all, participating insurance refers to a kind of insurance in which the insurance company pays dividends to the insured according to a certain proportion according to the profitability of the participating insurance business in the previous year.

There are two main ways to distribute dividends, namely increasing the sum insured and cash collection.

Secondly, universal insurance can be understood as life insurance protection with an investment account.

The insurance company manages the investment account in a unified manner, and the income obtained through the investment will be directly distributed to the universal account, and the insured can either leave the money in the account for interest rollover, or apply for cash withdrawal.

2. Stability of income.

As mentioned above, the dividends of participating insurance must be determined according to the operating performance of the participating insurance business of the insurance company.

As we all know, no one can say for sure whether the company will be able to make a higher profit, so insurance companies do not guarantee dividends.

That is, dividends can be high, or they may be very small, or even none.

In addition, there are many things to pay attention to when choosing participating insurance: Why are the complaints about participating insurance so high? Demystifying the mystery of participating insurance.

Secondly, there is a settlement interest rate and a guaranteed interest rate in the universal account of universal insurance.

The settlement interest rate is unstable, but the guaranteed interest rate is written in black and white on the insurance contract, which means that the minimum amount of money in the account will increase at this interest rate.

Comparatively speaking, the income of universal insurance is a little more stable than that of participating insurance.

Space is limited, if you want to fully understand the difference between these two types of insurance, you can read this more detailed popular science: what is the difference between participating insurance, universal insurance, and increased whole life insurance? Which one is the most cost-effective.

The differences between universal insurance and participating insurance are as follows:

1. The separate accounts are different, and the participating insurance does not have a separate investment account, and the annual dividend is uncertain. Universal insurance has a separate investment account and has the function of a guaranteed interest rate (but the guaranteed interest rate is generally very low).

2. The profit is different, and the dividend-paying insurance dividend is the income of the interest rate difference, the death difference and the fee difference. In addition, there are weak factors such as surrender benefit. Although the predetermined interest rate on the guaranteed portion of the funds is around 2%, insurance companies are allowed to pay variable dividends to investors every year.

And the profit of universal insurance comes from investment income.

3. The flexibility of payment is different, and universal insurance has the characteristics of flexible payment, adjustable sum insured, and convenient receipt of policy value. However, the payment time and amount of participating insurance are fixed, and the flexibility is poor.

4. The difference in investment risk, the investment income and risk of universal insurance are jointly borne by the insurance company and the customer, and the risk is relatively small. The return of the investment channel of participating insurance is relatively stable and the risk is minimal.

5. The transparency is different, the operation of the participating insurance funds is not explained to the customer, and the insurance company only informs the policyholder in writing of the dividend amount of the policy on the anniversary of each insurance contract, which is less transparent. Universal insurance companies publish the rate of return on investment on a monthly or quarterly basis.

6. The income distribution method is different, the dividend insurance will distribute 70% of the company's distributable profit in the previous year, and give it to customers by increasing the amount of insurance and receiving cash directly, etc., and the dividend yield of the participating insurance is uncertain. In addition to providing investors with a fixed rate of return, universal insurance will also give indefinite dividends depending on the operating conditions of the insurance company.

Hello! Universal insurance refers to a life insurance product that includes insurance protection functions and has a certain asset value in at least one investment account. 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.

The differences between universal insurance and participating insurance are as follows:

1. The separate accounts are different. There is no separate investment account for participating insurance; Universal Insurance has a separate investment account.

2. Different income distribution methods. Participating insurance is given to customers by increasing the sum insured, receiving cash directly, etc., and the dividend yield is uncertain; In addition to providing investors with a fixed rate of return, universal insurance will also give fixed dividends depending on the operating conditions of the insurance company.

3. Profit ** is different. Dividends of participating insurance** are derived from the three spreads (interest rate spread, death spread and fee spread), while universal insurance profits come from investment income.

4. The flexibility of payment is different. Universal insurance has the characteristics of flexible payment, adjustable sum insured, and convenient receipt of policy value, while participating insurance has a fixed payment time and amount, and the flexibility is poor.

5. Transparency is different. Participating insurance is less transparent. Universal insurance will publish the return on investment on a monthly or quarterly basis.

6. Different investment channels. Universal insurance has a guaranteed return.

1. Suitable for people: universal insurance is more suitable for people with greater demand elasticity and more expectations for insurance based on investment and financial management; Participating insurance is more suitable for people with strong risk tolerance, stable long-term financial needs, but want to obtain long-term continuous protection.

3. Income distribution method: In addition to a fixed rate of return, universal insurance will also give fixed dividends according to the operating conditions of the insurance company; The dividend yield of participating insurance is uncertain.

4. The flexibility of payment is different: universal insurance is flexible in payment, and the insured amount can be adjusted.

The differences are as follows:

1. In addition to providing life protection like traditional life insurance, universal insurance can also allow customers to directly participate in the investment activities of the funds in the investment account established by the insurance company for the policyholder;

2. Participating insurance is mainly the policyholder is entitled to receive dividend distribution based on the operating results of the insurance company every year.

Participating insurance generally adopts the cash dividend method. Every fiscal year.

After the end of the day, the life insurance company first considers the appointment of an actuary by the board of directors of the company based on the current year's operating surplus.

The distributable surplus for the current year is determined, and policy dividends are determined among policies according to their contribution to the total surplus. Undistributed earnings are retained in the company for future dividends, final dividends or as shareholders' equity. The principle of contribution to the distribution of earnings under the cash dividend method reflects the principle of fairness of dividend distribution among different policyholders.

In essence, universal insurance and participating insurance can be regarded as life insurance, but there is still a big difference between the two.

In this regard, the next senior sister will focus on universal insurance and participating insurance, and let's understand the differences between these two types of insurance.

Insurance] which is good, how to buy a good deal, hand in hand to teach you to avoid these pitfalls of insurance.

1.The method of receiving income is different from **.

Universal insurance is mainly through the universal account to achieve the purpose of compound interest appreciation, and the way to receive income is to complete by receiving the account value, and its income is mainly from the insurance company's own investment income.

Wealth management with universal insurance, stable and safe income? Doxxing universal insurance!

The dividend income of participating insurance is generally distributed in the form of cash dividends or insured amount dividends.

In contrast, the income of participating insurance** is distributed in a certain proportion according to the actual distributable surplus of the insurance company's operation of its participating insurance business.

About the participating insurance, what the salesman will not tell you.

2.Payment methods are different.

In addition, there are also differences in the payment methods between universal insurance and participating insurance.

The payment method of universal insurance is relatively flexible, in addition to paying on time and on time, if you want to make additional investment during the insurance period, you can also complete it through additional premiums; On the contrary, the payment method of participating insurance is fixed, and it is written in black and white on the insurance contract at the time of insurance, and the payment must be made on time.

Before analyzing the difference between participating insurance and universal insurance, these insurance knowledge needs to be understood in advance:Before buying insurance, you must first understand these key knowledge points! 》

The difference between participating insurance and universal insurance is as follows:

Universal insurance means that the insurance company will establish an investment account for the policyholder after the insurance is purchased, and the premiums paid by the policyholder will enter the account after deducting a certain fee, and the insurance company will invest and operate. Different from dividend insurance, universal insurance has an interest rate, which means that the funds entering the universal account will have at least as much income as the interest rate, and there is no situation where the income is 0. However, it should be noted that the income above the guaranteed interest rate is not guaranteed by the insurance company!

Participating insurance refers to a wealth management insurance product in which the insurance company invests part of the customer's premium, and distributes the investment income to the policyholder according to a certain amount after deducting the cost, killing two birds with one stone, and one insurance takes into account the protection and financial management functions.

Hear"Dividends"Two words, many people feel that they have paid money, not only guaranteed, but also able to enjoy dividends, as if they have become the original shareholders of the insurance company, but I have seen too many friends who have bought dividend insurance, but no one has really obtained considerable income after buying dividend insurance, not one.

The main reason is that consumers do not know enough about participating insurance

Clause. 1. It is difficult to receive dividends from dividend insurance.

Second, the dividend pool is not transparent.

These two characteristics of dividend insurance make the real income of dividend insurance an unknown, so everyone is afraid of dividend insurance, and the specific reasons I have put in this article. Why is it said that participating insurance is insurance"Areas with a high incidence of complaints"？》

Therefore, if you do not have a certain amount of insurance knowledge, you should be cautious to buy participating insurance!

[Written at the end].

I am [Xueba Says Insurance], focusing on objective, professional and neutral insurance evaluation;

I will give you the most professional advice with years of experience in configuring insurance for 10w+ families.

The differences between universal insurance and participating insurance are:

1. The compensation conditions of the two types of insurance are different according to the terms of the contract. The payment conditions of general participating insurance include death or survival insurance, etc.; Universal insurance does not have any compensation conditions other than a death benefit. Therefore, in terms of compensation clauses, participating insurance is more abundant than universal insurance.

2. Differences in flexibility. Participating insurance has the attribute of compulsory savings, so the money in it is not withdrawn if you want to, and the liquidity is not high. In addition to paying a certain handling fee in the early stage, universal insurance also has very free access.

Even if you decide to surrender the policy at the early stage of insurance, the loss will not be large, which can be said to be more flexible.

3. In addition to the function of dividend management, dividend insurance can also have different protection functions according to different terms. Universal insurance has no function, and the biggest function is financial management.

Further information: 1) Participating insurance, referred to as participating insurance, is an insurance company that distributes the income of this dividend insurance to customers in the form of dividends according to a certain proportion in each fiscal year. At present, in terms of statistical caliber, some types of insurance with dividend functions, such as participating life insurance, participating endowment insurance, and participating all-inclusive insurance, are included in the scope of participating insurance. It can be seen that in addition to dividend income, dividend insurance also includes the protection functions of the policy itself, such as ordinary death benefit, critical illness benefit, etc.

Management is unrealistic. Because no matter how much the dividend is, it is not a certain income, because the commitment guaranteed by the insurance company is only the minimum income of the participating insurance, which is generally 1-2%.

2) Universal insurance generally refers to universal insurance. Universal insurance is a type of insurance product. As with traditional life insurance, in addition to life protection, customers can also directly participate in the investment activities of funds in the investment account set up by the insurance company for the policyholder.

The value of the policy is linked to the performance of the funds in the policyholder's investment account, which is independently operated by the insurance company. Most of the premiums are used to purchase units of an investment account set up by an insurance company. Investment specialists are responsible for the mobilization of funds in the account and investment decisions, investing the funds in various investment vehicles.

Universal insurance is a type of "life insurance". Don't think of it as a financial product. Universal insurance is also an insurance product.

As a result, it has the basic functions of life insurance. The reason why it is said to be "omnipotent" is mainly reflected in the flexible payment, adjustable sum insured, and convenient receipt of policy value.

The differences between universal insurance and participating insurance are as follows:

1. Participating insurance is a traditional type of insurance, and its insurance amount and payment period are all stipulated. It can't be changed. It is necessary to pay on time, and the universal insurance is different from the traditional insurance, its insurance amount can be increased or reduced at any time (the premium paid does not need to change), the payment period can also be set by yourself, this year is not paid, the policy will not be invalid (on the basis of the policy value is not less than the protection cost of the year), the money in the investment account can be withdrawn at any time.

2. Dividend insurance is mainly to evaluate the profit and loss of the three differences, and then at least 70% of the surplus that can be distributed to customers this year, the transparency of the dividend insurance is low, and the company's operating conditions and so on have a very small impact on the dividends of the dividend insurance.

Universal insurance is a segregated account, the money in the account is used to invest, and then reap the return, with an obvious interest rate rise with the nature of inflation, the ability to resist inflation is stronger than dividend insurance.

3. Dividend insurance is compound interest on an annual basis, and universal insurance is compound interest on a monthly basis.

4. Participating insurance is term insurance, and universal insurance is current insurance.

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