How to maximize insurance dividends Insurance Tips

Category: Insurance tips Release Date: 2006-08-01

Insurance dividends in the choice, choose a different dividend approach, available to the interests of policy holders will differ. It is understood that China's current insurance market, profit-sharing bonus, there are four approaches: cash dividends, the cumulative interest, offset the premium paid by the amount and the purchase of insurance.
In general, the policyholders would be more willing to opt for cash by way of dividend. But experts believe that in most cases, the annual dividend amount is not large, in order to handle the smaller amount of the payment of each insurance policy and receive procedures, it is not cost-effective. In the case of installment payments, premiums and cash dividends offset the actual effect is the same, can also be eliminated to pay and receive procedures. Can also reduce the accumulation of interest-bearing micro-payment, to receive procedures.

It is understood that, in the same conditions, investment income, cash dividends and the purchase of insurance paid by the amount of dividends received by the insured amount are not equal. For example, a parent for their own less than 1-year-old daughter bought a 30-year period, a dividend of insurance products, insurance products which can be used to purchase paid in cash dividends or dividends increase the amount of insurance approach. That cash net profit was 100 yuan, purchase the amount of insurance paid by the insured amount to convert dividends, compared with 440 yuan, 4.4 times the cash dividend.

But need to note that the product of different or the insured person under different circumstances, the insured amount of cash dividends converted into bonus credits when they are not the same. Moreover, the sum insured policy holders dividend occurs only in the risk of life only when they can receive, but if the insured needs funds can also increase the amount of cash paid to obtain insurance for all or part of the cash value. The amount paid by the insurance part with the cash value can participate in the distribution of dividends.