At the beginning of this article, we need to let everyone know more about universal insurance and other insurances, so as to better understand the following contents, and it is recommended to collect them:
"Dividend insurance, universal insurance and increased whole life insurance, what is the difference between these financial insurance? What is the least loss to buy? 》
1. What is universal insurance?
Universal insurance is a very "young" insurance. The world's first universal insurance was born in the United States in 1979. This is a product that combines term life insurance and annuity savings. The name and function of "Universal" is synonymous with it. Once it was introduced, it caused a wave of upsurge, which is the embryonic form of universal insurance today.
From the combination of the first universal insurance product, it can be seen that functional guarantee and personal insurance for investment are the main advantages of this universal insurance product, that is, in addition to the insurance guarantee function, it also includes the function of setting up an investment account with guaranteed income.
How is the income of universal insurance calculated? What's the connotation? The intuitive schematic diagram is as follows, you can learn about it first:
In order to be more clear at a glance and deepen understanding, the senior simply introduces an initial process to everyone:
After voluntarily paying the premium of a universal insurance product, the insurance company will deduct the initial cost (operating cost) as the first step;
The rest of the money will go into two accounts: one part will go into the security account for security; The other part enters the investment account for investment.
How much should protection and investment cost? The allocation of this limit shall be adjusted by the insured according to his own situation.
Second, the advantages and disadvantages of universal insurance
Advantages of universal insurance.
(1) Flexible payment for universal insurance
Traditional life insurance payment is mandatory, but universal insurance is not.
After paying the initial minimum premium, the insured can make additional investment every year according to the income;
As long as there is enough money in the policy account to pay the premium in full, the customer can also suspend the premium payment;
The insured wants to choose independently within a certain range, or can receive the policy value at any time.
(2) Universal insurance protection is flexible and diverse.
Generally speaking, universal insurance can attach major illness insurance and accident insurance, so major illness insurance, accident insurance and death insurance can be owned by universal insurance and provided by insurance.
The charm of universal insurance lies in that it can be used to manage money, treat diseases and provide for the aged. More importantly, it can be used as an education fund and bring many services to the insured.
(3) the universal insurance account is transparent
The account design is transparent and the cost is very transparent. This is a unique design that universal insurance is higher than other types of insurance. While deducting the initial cost from the paid premium, the cost is guaranteed. It even specifies the expense ratio of the investment account in detail.
Moreover, it is something that insurance companies will do every month or quarter, settle the value of policy accounts and announce the settlement interest rate for the current month or quarter.
After the birth of this design, it is convenient to check how much income has been generated by providing the specific content of checking the value of accounts, such as how much expenses have been deducted, so that customers can feel more at ease.
(4) Income security
The guarantee income of universal insurance is generally the part that the premium enters a separate account after deducting expenses and guarantee costs, rather than the total yield of all premiums. If so, be sure to make it clear.
General universal insurance promises customers a guaranteed income of about 1.75%-2.5% every year for five years, and the income higher than the guaranteed interest rate is shared by insurance companies and investors in a certain proportion.
However, because the guaranteed income of each company is different, the final income is determined according to the insurance company's own capital utilization ability and comprehensive management.
2. Disadvantages of universal insurance
(1) The actual income may be different.
As mentioned above, universal insurance basically promises to guarantee income, but it should be noted that the part beyond the guaranteed income cannot be guaranteed.
After all, some insurance companies that guarantee more benefits don't make promises, and the calculation of future benefits can only be regarded as a descriptive scheme of product specifications. Investment income fluctuates.
(2) the investment income is not high
At present, the guaranteed interest rates of many universal insurances on the market are between 1.75%-2.5%. Friends who know more about the bank deposit interest rate or fund interest rate must know that this interest rate is far from high, and the investment income can be imagined.
Besides the thoughtlessness mentioned above, what else should I pay attention to when buying universal insurance? Please see here for the answer:
"How much can you earn by buying universal insurance? Don't be silly, I don't know yet ... "
In short, the coexistence of advantages and disadvantages is the normal state of products, and universal insurance is no exception. Very flexible, but also investment, but the investment income is unknown. The methods to reduce the overall return on investment are: deducting the initial cost and risk premium.
Therefore, according to the analysis of senior sister, if there is a real lack of wealth management products, universal insurance can be used as a supplement, and it is unwise to regard universal insurance as a lifelong protection product and an investment product.
Third, what should I pay attention to when insuring universal insurance?
Before buying universal insurance, you must first determine whether you have provided enough protection for yourself and whether you have enough ability to transfer risks. Providing protection is undoubtedly the most basic function of insurance. Once you decide to buy universal insurance, how can you get twice the result with half the effort? Next, the senior sister will explain this problem.
1. The higher the settlement interest rate of universal insurance, the better: the settlement interest rate is preferably around 4%-5%. The higher the interest rate, the more objective the highest possible return. We can check the product interest rate in official website.
2. The higher the guaranteed interest rate of universal insurance, the better: it is best to be between 1.75%-3%. The guaranteed interest rate of universal insurance products will be clearly indicated in the contract. The lower the guaranteed interest rate, the less we will get in the end.
3. The lower the handling fee for universal insurance transfer/transfer, the better: if you invest your money in a universal account, there is generally a handling fee of 1%-3% (returned after 5 years); When withdrawing money in the first five years, there was still a handling fee of 1%-5%. Relatively low fees cost less, which can make consumers spend less.
In short, it is not difficult to see that universal insurance is only suitable for one kind of people-people with stable and sustained high income, abundant funds on hand, no better investment channels, small capital turnover and unwilling to shrink banks. For ordinary families, it is the primary task to do a good job of basic protection, and the most taboo is to spend at will without looking at their own situation and needs.
If you have enough protection at home and want to buy universal insurance, you can refer to the list of universal insurance compiled by senior sister:
"There are ten universal insurances here, which are well worth buying! 》
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