First, the universal account is actually an account in the universal insurance of insurance companies. You can simply understand it as the financial account of the insurance company. Generally, it will be sold together with other insurance (mostly annuity insurance) with a guaranteed interest rate. Generally, only wealth management products such as annuity insurance and whole life insurance have universal accounts.
Second, it is free of charge, transparent in fees and guaranteed in income. There are two kinds of universal accounts in the market, one is attached to the main insurance, and the other is sold independently.
Additional universal account: generally, the income is calculated after the main insurance income begins to arrive. For example, there is annuity insurance, which will be returned in five years. I don't want to take the money out at this time. The money can be put into this extra universal account. Then with the passage of time, the money in this universal account will naturally increase according to the settlement interest rate or guaranteed interest rate. Most of the additional universal accounts in the market cannot independently pursue the investment amount, but can only be transferred from the main insurance account.
2. Independent universal account: This kind of universal account is completely independent, and there are few kinds of universal accounts in China. As soon as the money is invested, it begins to calculate the income.
The income of supplementary annuity account and universal account must be viewed separately, and the income of universal account must be calculated after the money in annuity account is transferred. It usually takes five years to turn it around. Guaranteed interest rate is the most important standard to ensure income.
Third, annuity insurance+universal account can be called the hardest hit by misleading sales. Many salesmen will advocate 5% life-long compound interest, including insurance company's publicity and interest calculation. Usually they will calculate and plan according to 4.5% or 5%, so that the plan will look beautiful and the income will be high. A large number of products can only maintain a high settlement interest rate in the early years (a few years ago), and the yield of a few products will shrink rapidly after a certain period of time, which is difficult to meet customers' expectations, and the decline in the yield of this product is unpredictable when purchasing.