Universal insurance refers to life insurance that can pay insurance premiums at will and adjust the payment amount of death insurance at will. That is to say, the insured can pay any amount of insurance premium except the down payment of a certain minimum amount at any time, and increase or decrease the amount of death payment at will, as long as the accumulated cash value of the policy is enough to pay the costs and expenses of subsequent periods. Moreover, the calculation of the cash value of universal insurance has a minimum guaranteed interest rate to ensure the lowest rate of return.
"Universal insurance" is a translated word. Under this "universal insurance" insurance method, the insurance premium paid by consumers is divided into two parts, one for insurance and the other for investment. The investment part of this money can be converted into insurance by consumers' own choice. This conversion may be manifested in the change of payment method, payment period and insurance amount. In foreign countries, generally speaking, the risk of investment is borne by consumers themselves; In the domestic universal insurance, a minimum guaranteed rate of return is generally given, and consumers themselves can weigh and compare the minimum guaranteed rate of return and the bank deposit interest rate. Universal insurance is a better service provided by insurance companies, and it is definitely not the meaning of "universal" in Chinese vocabulary. The so-called insurance is to transfer the results of potential risks to insurance companies by paying insurance premiums, and the risks themselves cannot be transferred. With the exposure to insurance, people's awareness of risks will be enhanced. In this sense, the possibility of risks may be reduced.
What is universal life insurance?
Universal Insurance Universal Life Insurance refers to a life insurance product with insurance protection function and certain asset value in at least one investment account. Universal life insurance, like traditional life insurance, not only guarantees the life of the insured, but also allows customers to directly participate in the capital investment activities in the investment account established by the insurance company for the insured, and links the policy value with the capital performance in the investment account of the insured operated independently by the insurance company. Most of the premiums of universal life insurance are used to purchase investment account units set up by insurance companies. Investment experts are responsible for the transfer of account funds and investment decisions, and the insured's funds are invested in various investment tools. Calculate the value of assets in the investment account, and ensure that the insured can make investment operations with the help of expert financial management on the premise of enjoying the balance of the account principal and certain interest protection.
Universal life insurance has a low interest rate, which is roughly the same as dividend insurance; Insurance contracts are flexible in paying premiums and changing the amount of insurance, which can fully meet the protection needs of customers in different periods; There are both guaranteed minimum interest rates and the possibility of enjoying high returns brought by high interest rates, thus attracting customers. Universal life insurance provides a possibility that a person only needs one life insurance to solve the protection problem. Flexible premium payment and adjustable protection are very suitable for the planning of lifelong protection.
Question added: Can you take out the money when universal insurance is used?
Generally speaking, it is possible, but it should be noted that different insurance companies have different regulations for different products. For example, children's products can be extracted in the case of school and marriage, but the specific terms depend on the policy.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.