What is the difference between universal insurance and participating insurance

First of all, the difference between universal insurance and dividend insurance is mainly different product features, different incomes and so on. Next, the senior sister will tell you about the relevant content of the two types of life insurance, universal insurance and participating insurance.

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The main differences between universal insurance and participating insurance are:

1.Product features are different.

To put it simply, universal insurance refers to a kind of life insurance designed as a universal type, and most of the universal insurance products are now combined with whole life insurance, comprehensive insurance, annuity insurance, etc.; In this way, universal insurance can not only provide certain protection to the insured, but also provide certain income to the insured.

Participating insurance refers to a kind of life insurance in which the insurance company allocates the distributable surplus of the previous fiscal year to customers according to a certain proportion after the end of each policy year. At present, the participating insurance on the market is mainly used as a combination of whole life insurance, comprehensive insurance and annuity insurance, etc., and it should be noted that policy dividends cannot be separated.

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2.The benefits are different.

The income of participating insurance is the distributable surplus generated by the difference between death, interest and expense, and in layman's terms, the income of participating insurance is mainly the distributable surplus corresponding to the dividend business of the insurance company.

The income of universal insurance** is mainly the investment income of the universal account, which is mainly managed by the insurance company for the policyholder.

Compared with the two, the income of universal insurance is relatively stable, the main reason is that universal insurance provides a minimum guaranteed interest rate, regardless of whether the investment situation of the universal account is good or bad, the insurance company will at least provide the policyholder with the minimum guaranteed interest rate corresponding to the income.

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Universal insurance has a flexible financial management function, and the difference from participating insurance is that it is flexible in payment, flexible account access, and the amount of insurance can be adjusted according to your wishes.

Participating insurance is a regular payment according to the contract after the payment period is determined, and the payment shall not be stopped, otherwise it will be suspended, and the sum insured cannot be adjusted.

Universal insurance and participating insurance are two different types of insurance, the difference is that the income is not the same, and the risk is not high.

1. Investment accounts are different. Universal insurance is usually a universal account that includes both protection and a guaranteed return. Participating insurance refers to the insurance in which the policyholder can participate in the dividend distribution of the insurance company.

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Universal insurance does not have a large income from participating insurance, and the insured amount of universal insurance can be adjusted, but the protection fee must be deducted, and the available balance deducted to the final account is getting less and less, while participating insurance can be attached to term life insurance, early payment of critical illness, hospitalization, etc., which can better meet the needs of the public than universal insurance!

Universal insurance is flexible but deducts fees for life, participating insurance has fixed income and annual dividends into universal without charge, and so on.

Wealth management insurance has a dividend function, and universal insurance is one of the types of insurance.

Different insurance products vary, you can call your desired insurance company** for advice.

Universal insurance is a non-binding life insurance with flexible premiums, 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, sometimes it may even be possible to pay no premiums.

However, on the other hand, it is also possible that you need to re-pay the premium at some point after the premium payment period to maintain the policy, and there are many expenses to be deducted.

Almost the dividend insurance is better.

Comparatively, participating insurance is more appropriate.

It's all of the same nature.

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: different accounts set up by the state, different contributions, and different investment risks.

1. The separate accounts are different.

There is no separate investment account in the protection content of the participating insurance, and only the part of the surplus of the actual operating condition of the insurance company can be obtained every year, and if the operating situation of the previous year is not good, then it is very likely that the dividend will be 0. Universal insurance has a separate investment account book, which generally has a guaranteed interest rate, but the guaranteed interest rate is lower.

2. The payment is different.

The payment time and amount of participating insurance are fixed, while the payment time and sum insured of universal insurance are very flexible, and the sum insured can be adjusted at will.

3. The difference in investment risk.

The investment income of participating insurance is relatively stable and the risk is small; The investment returns and risks of universal insurance are shared by the insurance company and the policyholder, and the risk is only relatively small.

The pure meaning of universal insurance:

Universal insurance is a type of insurance product. In addition to providing life protection like traditional life insurance, customers can also directly participate in the investment activities of the funds in the investment account established by the insurance company for the policyholder, and the policy value is linked to the performance of the policyholder's investment account funds operated independently by the insurance company. <>

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.

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The difference between participating insurance and universal insurance lies in the different separate accounts, different payment methods, different investment risks, different income distribution parties, and different transparency.

1. The separate accounts are different.

One of the biggest features of universal insurance is that it has a separate investment account, and the insurance company will take the money to invest, although there may be losses, but rest assured, the insurance company has a guaranteed interest rate, even if it loses, you can still get a guaranteed income (but the guaranteed interest rate is lower). There is no separate investment account for dividend insurance, and the annual income depends on the dividends of the insurance company, and the amount of the dividend cannot be determined, depending on the actual operating conditions of the insurance company.

2. Different payment methods.

The payment time and amount of participating insurance are basically fixed, while the payment method of universal insurance is more flexible, not only can the insurance be increased at any time, but the sum insured can also be adjusted. Universal insurance is better than participating insurance in terms of payment flexibility.

3. The investment risk is different.

The risk of participating insurance and universal insurance is different, and the risk of universal risk is borne by the insurance company and the policyholder, so there is a loss, but because there is a guaranteed interest rate, the risk can only be regarded as relatively small; The income of participating insurance depends on the operating conditions of the insurance company, so the risk is very small.

4. Different income distribution methods.

How much the participating insurance can be distributed depends on the profit of the insurance company in Shanglingliang for a year, which is distributed according to 70% of the distributable profit of the insurance company, and can be directly received in cash, or it can be used to increase the amount of insurance without receiving it; Universal insurance is based on the universal account to receive interest, and the insurance company will use the money in the universal account to invest and then get a return.

5. Transparency is different.

Participating insurance only informs the beneficiary in writing of the amount of dividends that can be shared on the anniversary of each insurance contract; Universal insurance is a monthly or quarterly plan to know the expected rate of return on the investment of the policy. <>

1.The premiums paid by the participating insurance are used by the insurance company in a unified manner, and only when the investment is stable and the profit can the gold and dividends be returned; Most of the funds of universal insurance are placed in investment accounts, and Bili can invest in financial products such as ****, and the protection of universal insurance is relatively small. If a loss is found in the investment process, the policyholder can stop the loss to prevent greater losses for personal interests.

2.The income of participating insurance is generally lower than the income of universal insurance, and the income of participating insurance is ** to the insurance company, as for the amount of income, it is generally based on the ability of the insurance company to operate funds, but there will be a certain expected income when purchasing participating insurance, which can be paid attention to; The income of universal insurance** is the investment income of the personal account.

3.In the case of participating insurance, customers generally do not know the specific operation when the funds are operated, and the dividend amount of the policy will generally be informed on the anniversary date of the insurance contract, and the overall transparency is relatively low; Universal Insurance will publish the return on investment every month or quarter, which is relatively transparent, and investors can keep abreast of capital trends.

4.The income distribution of participating insurance will be distributed to the policyholder according to a certain proportion, generally 70% of the distributable profit, and the insurance company will increase the insured amount or directly distribute cash to the user, but the income of the participating insurance is not the same, it may be high this year and low next year; Universal insurance generally provides users with fixed income, and if the insurance company operates well, it will also give an indefinite amount of dividends.

5.When the policyholder buys the participating insurance of the insurance company, he will generally pay the premium at a fixed time, and the time of the dividend is also determined, and the flexibility is relatively poor; The payment of universal insurance is relatively flexible, and the sum insured can be adjusted, making it easy to receive the value of the policy.

In fact, participating insurance and universal insurance are both investment and wealth management insurance, which can bring benefits to users, and they can be purchased in combination with their actual situation when purchasing, and finally choose the insurance product that suits them.