Will investment linked insurance be the next universal insurance?

At a time when insurance products such as universal insurance and participating insurance are booming, investment-linked insurance has been left aside. In fact, since the second half of 2014, the **bull market** has driven the blowout growth of the scale of investment-linked insurance, and the proportion of life insurance premium income has also been rising, as of the first half of 2016, the proportion has reached. However, compared with overseas, the gap is still very large, both in terms of scale and proportion.

Obviously, in this round of blowout in the development of investment-linked insurance, life insurance companies with superior channels have an advantage. The life insurance companies with large scale and rapid growth of investment-linked insurance business mainly include established life insurance companies, such as Taikang Life Insurance and Ping An Life; Bank-affiliated life insurance companies, such as Sun Life Everbright, CCB Life, Prudential Life, etc.; and companies with better Internet channel construction, such as Hongkang Life Insurance, Guohua Life Insurance, etc.

There is a strong correlation between the scale and return on investment of China's investment-linked insurance and **. Throughout the development of China's investment-linked insurance, several ups and downs are inextricably linked with **. With the rise and fall of the first stage, it has experienced the stages of the shutdown period, the depression period, the upswing period, the downturn period and the resumption period.

From the perspective of investment returns, the investment returns of equity-based investment-linked insurance have a strong fit with the rise and fall of the CSI 300 Index.

Fortunately, there is this foreshadowing, otherwise it would not work no matter how you look at it1371

First of all, the difference between investment-linked insurance and universal insurance is that the investment protection is different, the return is different, and the liquidity is different. However, both are investment and financial management tools. The following senior sister will give you the difference between investment-linked insurance and universal insurance.

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1.The meaning of investment-linked insurance and universal insurance.

Investment-linked insurance, also known as "variable life insurance", simply put, investment-linked insurance is a new form of whole life insurance product, which is mainly divided into two parts: protection and investment; Among them, the protection function is mainly reflected in the accidental death of the insured during the insurance period, in addition to the death insurance benefit that can be claimed by the insurance company, but also through the form of investment-linked supplementary insurance to enable the insured to get protection such as critical illness insurance. As for the investment function, it is reflected in the fact that the insurance company uses the premiums we pay to invest, so as to obtain income.

Universal insurance refers to a kind of life insurance that includes a protection function and has a separate policy account, and the policy account provides a minimum income guarantee. After the premium is paid to the insurance company, it is entered into two different accounts, one is to enter the risk protection account for the main protection function, and the other is to enter the investment account for investment.

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2.The difference between investment-linked insurance and universal insurance.

After reading the above content, I believe you have a certain understanding of investment-linked insurance and universal insurance, so what are the differences between the two? Next, the senior sister will analyze it for you.

1) The size of the risk, the universal account that comes with the universal insurance has a minimum guaranteed interest rate, so that even if the investment is not ideal, there will be a fixed minimum return; However, in the case of investment-linked insurance, the investment part of the premium paid by the policyholder will be invested by the insurance company, and the profit or loss will be borne by the insurer, so there may be a loss. Comparatively speaking, investment-linked insurance is more risky.

2) The payment method is different, investment-linked insurance is usually paid once a year, while universal insurance has no fixed term.

3) Suitable for the insured group, relatively speaking, because the universal insurance has a guaranteed interest rate and the risk is relatively small, it will be more suitable for the people with conservative investment concepts; The investment risk of investment-linked insurance is borne by the policyholder, and the risk is relatively large, so it is more suitable for people who have a risky investment concept.

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The difference between investment-linked insurance and universal insurance.

Insurance experts say that the main differences between investment-linked insurance and universal insurance are as follows:

1. Investors take different risks.

The income of investment-linked insurance** is the income on the investment account, and the rate of return is not guaranteed, that is to say, the risk of investment-linked insurance is borne by the investor himself, and there may be losses in personal accounts, of course, there are also profits.

Universal insurance, on the other hand, will have a minimum guaranteed return, and usually, the investment risk is shared between the insurance company and the investor. For this reason, insurance companies must have certain risk prevention capabilities, so the capital operation of universal insurance is more conservative than investment-linked insurance, that is to say, if the policyholder wants to obtain high returns through universal insurance, it is more difficult. This reflects from the side that the risk of insuring universal insurance is smaller than that of investment-linked insurance.

2. The payment method of the premium is different.

Premiums for ILAS are usually paid once a year; The first premium of universal insurance has a minimum limit, and there is no fixed period for the payment time after that, and there is no fixed limit on the amount of payment, so the policyholder can decide the amount of payment according to his actual situation, but to ensure that the cash value of the policy is enough to cover the risk fee for the next year. How to buy critical illness insurance? Regarding the choice of regular or lifetime, I just sorted out the relevant content, I hope it will be helpful to you:

How to choose critical illness insurance term vs lifetime?

3. Investment accounts are different.

Most investment-linked insurance products will set up multiple accounts with different investment styles and different risk coefficients, such as aggressive, stable, etc., and customers can choose to invest in one or more accounts according to their risk tolerance.

Universal insurance will not set up multiple accounts for policyholders to choose from, and the premiums paid by policyholders will go into one"Large pools", which is operated by the insurance company, and the proceeds are distributed to customers.

Insurance experts said that universal insurance has both the functions of protection and investment, and the investment behavior does not need customers to worry, and at the same time sets a minimum rate of return, which is suitable for customers who are not strong in independent investment ability but have investment needs, and the risk is medium. Investment-linked insurance also has both protection and investment functions, but customers have a greater impact on investment results, and there is no minimum return, which is suitable for customers who can bear greater risks and want to obtain high returns.

Hello! In our daily life, we are increasingly exposed to fixed rebate or non-fixed rebate insurance products, expecting these insurance products to bring us higher and more stable investment returns than other investment products. There are three types of rebate insurance products that we are often exposed to:

Participating insurance, universal insurance and investment-linked insurance.

The difference between investment-linked insurance, universal insurance, and participating insurance.

1. The separate accounts are different. There is no separate investment account for participating insurance; Investment-linked insurance investment account, customers can choose freely; 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. ILAS does not have a fixed income, and it depends entirely on the investment income.

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

4. The flexibility of payment is different. Universal insurance and investment-linked insurance have 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. The operation of the investment-linked insurance investment part is transparent and transparent; Universal insurance will publish the return on investment on a monthly or quarterly basis.

6. Different investment channels. The difference between universal insurance and investment-linked insurance is mainly that the former has a guaranteed minimum to receive this potato minyi, while the latter does not, which is ultimately due to the different premium investment channels. The investment income of investment-linked insurance is much higher than that of universal insurance and participating insurance.

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

The difference between universal insurance and investment-linked insurance is that the product attributes and protection structure of these two types of insurance are very different. Before the start of popular science, everyone can come here to learn about insurance knowledge: super complete! Everything you need to know about insurance is here.

First of all, let's talk about investment-linked insurance, the full name of this type of insurance is investment-linked insurance, which refers to the insurance product that contains insurance protection functions and has a certain asset value in at least one investment account.

In addition to providing the insured with personal protection like traditional life insurance, Linked Ventures can also allow the insured to directly participate in investment activities managed by the insurance company, linking the value of the policy with the investment performance of the insurance company.

The most important function of investment-linked insurance is investment and financial management, which is still fundamentally different from universal insurance.

There are also some universal insurance that also covers critical illness, accident, and medical protection, which seems to cover everything, but in fact, each protection is not perfect, and it is common for the protection to be short.

It should be noted that before purchasing universal insurance and investment-linked insurance, it is best to purchase insurance with more complete life protection, such as critical illness insurance, medical insurance and accident insurance.