Traditional life insurance products have a fixed predetermined interest rate. Once the insurance contract comes into effect, no matter how the insurance company operates, the predetermined interest rate is fixed, which is used as the basis for calculating the cash value of the policy. During the whole guarantee period, the guarantee amount is fixed.
The remarkable function of this kind of insurance is to help individuals manage their finances. Insurance companies put most of the insurance premiums into special investment accounts, and the funds in the accounts are invested and operated by financial experts of insurance companies. Insurance companies charge a certain percentage of asset management fees, and most of the rest of the investment income is returned to customers, so that customers can directly share the financial management results of insurance company experts. When designing premiums in traditional insurance policies, customers don't know how the premiums paid are allocated to various expenses, while the insurance policies for investing in wealth management products are transparent in operation, and customers can know the various uses of premium allocation.