The benefits of insurance dividend insurance mainly come from the following aspects:
Investment income of insurance companies: insurance companies use premiums to invest to obtain income. These investments can include bonds, stocks, real estate and other investment tools. Through investment and operation, insurance companies can realize capital appreciation and take part of the income as dividend return.
Operating profit of insurance company: When the overall operating performance of the insurance company is good, that is, the insurance payout ratio is relatively low and the premium income is higher than expected, the insurance company may generate operating profit. These profits can be returned to the insured through dividend return.
Insurance risk allocation: insurance dividend insurance is a contract with the same risk, and the premium paid by the insured is not only used to provide insurance protection, but also used to bear the insurance accident risk of other insured. If the overall risk is low, the insurance company can take part of the saved risk sharing cost as dividend return.
Insurance policyholder's premium contribution: Insurance dividend insurance usually needs to be held for a period of time before it can begin to enjoy dividend returns. During this period, the premium contribution of the insured can be used to accumulate cash value and serve as a source of future dividend returns.
It should be noted that the specific income source and distribution mechanism of insurance dividend insurance will be different according to different insurance companies, product design and market environment. Before buying, it is recommended to carefully understand the dividend policy, cost composition and related risks of the product, and consult with insurance agents or professionals in detail in order to make an informed decision.
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