I. The concept of inadmissibility
American dividend: it belongs to premium dividend, and it is paid on the basis of paid premium, including cash collection, accumulated interest, premium payment and purchase and payment of foreign exchange. If the insured chooses to keep the dividend in the insurance company to accumulate interest, the dividend will be increased by compound interest according to the interest rate set by the insurance company, but it will not be added to the insured amount. During this period, if the insured needs to withdraw money, he can also apply to the insurance company.
British dividend: it belongs to the insured dividend, which is based on the insured amount and increases the current dividend to the existing insured amount of the policy. When the annual dividend is increased to the insured amount, the insurance company can increase the investment proportion of long-term assets, increase the investment income to a certain extent, and keep the insured with a high and stable investment return rate. In the event of an insurance accident, insurance expiration or surrender, investors can get dividends.
Second, each has its advantages and disadvantages:
Among them, the advantages of American dividends are:
1, which is relatively easy to understand.
Customers can get cash immediately.
3, the use form is flexible and can be collected and accumulated.
The advantages of British dividends are:
1, calculated by the insured amount, the dividend was considerable every year before, and the guarantee was high.
2. Return the dividend: While smoothing the annual dividend return, it has reserved more space for improving the return on investment.
3. Cash-free delivery reduces delivery and management costs and saves costs.
Disadvantages of American dividends:
1, based on the cash value, especially at the initial stage of insurance, the cash dividend is very small.
2. Cash dividends have delivery fees, so there are management costs.
3. Cash dividends need high liquidity, which restricts the space of investment income.
Disadvantages of British dividends:
1 is complicated and difficult to understand, and the calculation method behind it is generally not told to customers.
2, to ensure that part of the income is low, mainly depends on the expected income value.