Dividend Paul VS investment-linked insurance Insurance Tips

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

Since the central bank cut interest rates seven times, the life insurance from a fixed rate into floating-rate era, selling products from the present perspective, mainly insurance and investment-linked insurance dividends of two. Both are developed on the basis of traditional life insurance, and not only has the function of insurance, but also with investment, it is their similarities. But they are also great differences between:

1, the different categories of ownership than traditional life insurance, although the dividend increase dividends, enabling the insured to share insurer's investment income and operating efficiency, but the premium is only to provide protection, not divided into two parts. And investment-linked insurance have a stronger investment than the traditional insurance functions, levels of benefits under the insurance policy will and independence of the investment performance of an investment account directly linked to only a small part of the premium paid for the purchase of insurance coverage, the remaining part through the purchase of separate account established by the insurance company's investment units in the investment account. Investment account funded by insurance companies to invest in investment experts, investment income will be fully assessed to investment accounts belong to customers of all, the investment risk borne by the client.

2, may have different levels of investment income dividend of insurance due to hedging to meet the insurance payment for the purpose of most of the more conservative investment strategy, therefore, potential gains are relatively lower. Investment-linked insurance is provided for preserving and increasing value for customers to obtain the maximum benefit for the purpose of investment strategy choices are relatively positive, or according to customer requirements alternatives may have a relatively high level of investment income.

3, distribution of the proceeds distributed to the different insurance companies each year the amount of dividend dividend policy customers, depending on the insurer on a fiscal year, the actual operating results of insurance operations, so the amount of dividends can not be predetermined, it is with the insurance company actually and fluctuations in operating results.
Investment insurance investment account to connect the return on investment, insurance companies, except the monthly extract. 1% management fee, the remaining customers of all wholly owned by investment returns.

4, the different risk insurance due to dividend income from the insurance companies and customers to share, then the risk of investment by insurance companies and customers to share.
Investment-linked insurance benefits enjoyed by the customer entirely, customers accordingly bear the risk of the investment process.

5, transparency of different dividend premium only provides protection, not divided into two parts, investment and protection of funds can not operate explain to the clients, insurance companies, only the anniversary of each insurance contract in writing, sue policy holder the amount of the dividend policy , not transparent enough.
Investment-linked insurance premiums are divided into investment and protection of two parts. Investing part of its operation to remain transparent, the proportion of sub-collection of fees set out in the premium structure, use, prices are 11 listed, at least once a month to its customers public investment unit cell, the customer will receive an annual report each year, higher degree of transparency.