What Is an Assignment of Insurance?

Policyholders can share the types of insurance that the insurance company's operating results have, and policyholders are entitled to a dividend distribution based on the operating results of the insurance company every year. Simply put, it is to share dividends and enjoy the company's operating results.

Dividend insurance

The origin of dividend insurance:

For example, during the period 1994-1999

1 Policyholders enjoy operating results.

2 Clients bear certain investment risks.

3 The actuarial assumptions of pricing are conservative.

4 Insurance benefits, bonuses included in surrender

Dividend insurance belongs to wealth management insurance products. buy

Choose a strong company

Different from the fixed value payment of traditional life insurance, the benefits of dividend insurance are changing. The company's annual dividend payment to customers is not a fixed value, but fluctuates with the actual operating performance of the insurance company. The amount of dividends that customers receive in the future depends on the strength of the insurance company's business operations. Therefore, customers should choose a strong insurance company on the basis of carefully understanding the product's insurance liability and cost level when choosing to purchase. First depends on the strength of the insurance company. Powerful insurance companies often have certain advantages in resources and can provide customers with better services. Second, depending on the management level of the insurance company, including the investment performance and brand image of the insurance company.

Don't blindly follow suit

Many consumers rush to take out dividend insurance when they hear of high returns when they apply for insurance. This is irrational insurance behavior. At present, most residents in China are still in a state of lack of insurance products. When choosing an insurance product, you should first take the protection as the first consideration, and consider the dividend-type product when there is sufficient health and medical protection. Otherwise, if the customer suffers from health reasons or unexpected risks, the income will decline. Difficulties in the ability to pay premiums over time will not pay more. Therefore, the policyholder should choose to purchase dividend insurance on the basis of obtaining sufficient protection, and must not purchase insurance for the pursuit of dividends.

Understand your needs

When purchasing dividend insurance, citizens must correctly analyze their personal insurance needs and fully consider their personal risk tolerance. Buying dividend insurance is more suitable for people with stable income. For families who have a stable source of income and do not have a large expenditure plan in the short term, buying dividend insurance is a more reasonable way of managing money. Families with unstable income or short-term expected large expenditures should carefully choose dividend-type products. The profitability of dividend-insurance insurance is relatively poor. If you want to withdraw and withdraw mid-way to meet the needs from time to time, it may be difficult to protect the principal .

1. What is dividend insurance?

A: Dividend insurance refers to a type of life insurance that the insurance company allocates to the customers in the form of cash dividends or value-added dividends in accordance with a certain percentage of the distributable surplus of the previous accounting type of dividend insurance after the end of each accounting.

The main feature of dividend insurance is that in addition to the protection responsibilities provided by the insurance policy, the insured can also enjoy the operating results of the insurance company, that is, the surplus distribution obtained by participating in the investment and management activities of the insurance company. The China Insurance Regulatory Commission stipulates that insurance companies should allocate at least 70% of the distributable surplus of participating insurance to customers ^[1] .

2. What are the investment channels for dividend insurance premium income?

A: According to relevant state regulations, the investment channels of insurance companies mainly include government bonds, financial bonds (such as bonds from China Development Bank, Export-Import Bank, etc.), contractual deposits, and central corporate bonds (credit ratings above "AA"), Securities investment funds and national infrastructure construction include Beijing-Shanghai high-speed rail and Shanghai Water Affairs Creditor's Plan.

3. How about dividend insurance? How about the dividends of the dividend insurance?
A: Dividend insurance generally distributes dividends to customers based on 70% of the company's annual surplus on the basis of protection. As an added value for long-term protection in the future, it can partially resist inflation.
Dividends are different for each company. Depending on the investment scale, investment platform, and investment channel of each company, the dividends of the products will be different each year. At the same time, the amount of dividends depends on the amount of premiums invested by customers and the choice of products. different.
Relatively speaking, there will be less dividends for security-type dividend products, and there will be more dividends for wealth management products that banks specialize in selling. This is because the insurance companies bear different risks.

4. I don't know if the dividend insurance rate will be adjusted accordingly with the adjustment of the bank interest rate. It is not very cost-effective to adjust the bank interest rate. A: The dividends of the dividend insurance will be adjusted accordingly with the adjustment of the bank interest rate. As the market's inflation rises, the benefits of dividend insurance are formally due to the uncertainty of dividends, and can only resist inflation, and generally not lower than the regular banks. (1. Dividend insurance is more able to resist the loss of interest rate adjustments. The money you pay to the insurance company will be compounded and rolled in according to the benchmark interest rate given by an insurance company. If the bank interest rate is reduced after a few years, There is no loss, the insurance company's money is still rolling at a compound interest at a predetermined interest rate. If the bank interest rate is increased, in contrast, the large deposit interest rate, loan interest rate, and bond interest rate invested by the insurance company will be increased. The investment income will be increased accordingly and then returned to you through dividends. 2. Defending against various financial risks. In a sense, dividend insurance companies also bundle their own profits with the interests of customers. One glory, one glory, one loss It is destructive. In this way, the insurance company must try its best to ensure the preservation and appreciation of customer assets for its own profits.)

5. The difference between savings insurance and fixed deposit. I want to save money but the bank staff recommends me to buy dividend insurance. Is the income of this insurance guaranteed?
Answer: As the interest rate of the bank is fixed, for now, the index of the cpi is high, we deposit money in the bank and it will depreciate. It is difficult to achieve the expected effect by bank deposits. Commercial dividend insurance, first of all, has fixed income, and then combines dividends and compound interest to calculate interest, which can effectively resist inflation.

6. Is there any risk in participating insurance? Will the insurance company not make any money and not even return my principal?
Answer: Two parts of dividend insurance: 1. Fixed income, which is received according to the contract. 2. Floating dividends. An insurance company takes at least 70% of its profits to pay dividends. In theory, it can be zero, but in fact every company has them. The lower level is 3%. Rest assured that the CIRC pays close attention to the dividend rate of each company, and once it is very low, there will be measures.
Dividend insurance is risk-free, with a fixed amount of coverage and fixed income at maturity. Only dividends are not fixed. This is determined based on the company's operating conditions. But our company's dividends have been leading the industry every year for more than ten years.

7. Will it be more cost-effective to buy dividend insurance products than traditional insurance products? What are the characteristics of dividend insurance products?

A: It is definitely more cost-effective to buy dividend insurance products than traditional insurance products. This is because:

One of the characteristics is that in addition to the basic protection functions of traditional insurance products, dividend insurance products also have the right for customers to share with the company the actual operating results (bonus) of the insurance company each year. Compared to traditional insurance products, dividends are a profit-giving behavior of insurance companies and an additional income for customers.

The second characteristic is that an insurance company must set up a special investment institution, equip professional investment and financial personnel, open a special account for funds, perform specialized operations (investment) on dividend insurance funds, and try to maximize the return on capital utilization.

The third characteristic is that the insurance company will send a dividend insurance performance report and dividend notice to the policyholders regularly (usually within 15 days before the actual distribution date of the policy dividend).

8. Will there be less dividends than bank deposits? Isn't it cost-effective to buy dividend insurance at this time?

Answer: It may happen that the dividend is less than the interest on bank deposits. This is normal. Even so, it's a good deal to buy dividend insurance. This is because:

On the one hand, customers who purchase traditional insurance products can get higher interest income than the bank's deposit interest rate for the same period (1.98% × 80% = 1.584%), which is calculated at the predetermined interest rate of the insurance product (2.5% annual compound interest rate). This has been reflected in the product's insurance liability-it has been achieved through the product's rate: pay less insurance premiums or increase insurance liability.

On the other hand, for traditional insurance products, dividend-type products not only get the same protection as traditional insurance products (that is, they receive interest income calculated at a compound annual interest rate of 2.5%), but also receive additional insurance companies. More than 70% of operating results, that is, dividends.

Therefore, for dividend-type products, the customer's income should actually be: interest income at the product's predetermined interest rate plus dividends. This is obviously higher than the interest on bank deposits during the same period.