Four key indicators for purchasing savings insurance, don't you understand it?
date： 2023/03/23 source： GIA寰宇财富团队
"Is XX worth buying?"
"Which one is more suitable for me, XX product or XX product?"
"Can the dividend of XX product achieve the expectation?"
Recently, we have received plenty of messages expressing their curiosity about "how to choose the savings insurance". Although they have studied a lot, there is still some confusion. In view of these problems, we think it is necessary to write an article to share those valuable information with you.
We have sorted out and listed four important key indicators that should be attached great importance to when purchasing savings insurance. When you are planning on buying a product, good decision can be made as long as you use the four indicators to analyze and select the right product.
First of all, let's briefly introduce what is savings insurance: savings insurance is designed to combine the insurance function with the saving function by the insurance companies. The main forms include life insurance, pension insurance and education insurance. In addition to the basic personal security function, there is also financing and savings function. If there is no accident during the insurance period, the insurance company will return a sum of money to the insurance beneficiary at the agreed time, just like accumulating small premium for later withdrawals, which is very similar to depositing in installments while withdraw in lump sum in bank. In order to meet the investors' steady and high-yield investment demand, insurance companies have launched new saving products. Besides the traditional protection function, the savings insurance can value preservation of premium, encashment regularly with dividend and has long investment cycle.
1
Is the solvency ratio of insurance companies lower than 100%?
Solvency is the ability of an insurance company to repay its debts. An insurance company shall have capital commensurate with its risks and business scale to ensure that the solvency ratio is not less than 100%.
Calculation formula: solvency ratio = actual capital / minimum capital of insurance company.
The actual capital of an insurance company refers to the difference between admissible assets and liabilities.
The minimum paid-up capital requirement: Regulatory authorities require that insurance companies holding a certain amount of capital in order to absorb the adverse effects of asset risk, underwriting risk and other related risks on solvency.
The solvency ratio is neither equal to the strength of the insurance company, nor fully reflect the operation status of the insurance company. However, we can see whether the strategic planning of the insurance company is rash. If the solvency ratio is too low, it is more likely for the company to have operational problems. When choosing insurance products, customers should choose the strong, long history and big companies. However, you should be cautious for the small and medium-sized companies and you should avoid to choose companies that are too aggressive or currently facing problems. When choosing insurance products, customers should prefer insurance companies that meet the following conditions: 1) their solvency ratio should be more than 200%; 2) their shareholders with sufficient capital strength and they are willing to continue to increase capital; 3) the company should operate steadily and have reasonable scale of insurance products.
2
Is the historical fulfilment ratio of participating insurance open to the public?
Is the actual amount of dividend distributed the same as the amount shown in the proposal? This is a matter of great concern to all of us.
Fulfilment ratio that can show the ability to distribute dividend of insurance products. In order to let customers know whether the dividends reach the expected amount, and let customers measure the performance of the actual non-guaranteed benefits within a specified period of time. The insurance company will publish the actual bonus situation, that is, the dividend realization rate. Through the "fulfilment ratio", the customer can know the ratio between the expected amount and the actual distribution amount in the proposal.
Calculation method of "fulfilment ratio"= actual amount / expected amount shown in the plan
There are two kinds of participating life insurance products in some company: cash dividend products and reversionary bouns products. Cash dividends, sometimes called annual dividend, which are cash; and reversionary bouns, which guarantee the face value.
Cash dividend products usually distribute annual dividends and final dividends, and the fulfilment ratio of cumulative annual dividends and final dividends can be found on the official website of insurance companies. The annual bonus will be distributed at regular intervals every year and accumulated in the customer's account to generate interest; the final dividend will be paid at the time of claim settlement, surrender or expiration.
The reversionary bonus product will distribute the bouns and the final dividend. The " fulfilment ratio" of the reversionary bonus (since the issuance of the policy) will be calculated by dividing the sum of the reversionary bonus accumulated by the expected amount shown in the proposal. The "fulfilment ratio" of the final dividend will be calculated by dividing the cash value of the final dividend actually paid in the past year by the expected amount shown in the proposal.
The insurance proposal provides customers with a certain rate of return, but the past fulfilment ratio of the dividend policy can provide a good and important reference index for customers. The amount of dividends will be determined according to the past experience and future prospects of several factors, including investment report, claim settlement, surrender and expense. An analysis of the previous non-guaranteed cash fulfilment rate of an insurance company helps us to judge whether the expected dividend payment is stable and whether the company has a certain financial strength to ensure the interests of customers.
3
Is the insured convertible?
In order to meet the customer needs, the insurance market takes the lead in introducing the life insurance of convertible insured. It extends the functions of insurance products, improves the medium and long-term yield, and resets the payment period, which is similar to the family trust function. In terms of participating insurance products, this type of product has the feature of simple procedures, low threshold, and no extra charge.
In general, policy holder can be converted, but not the insured . It will be too complicated if the insured has been changed, as the insured is the subject of the policy. For example, as for health insurance, the health status of each insured is different, insurance companies can only protect the first insured in current situation. If it is necessary to change the insured, the health status of the new insured needs to be reassessed, and the insurable interest relationship between the applicant and the insured is also required. Therefore, general insurance products do not support this function. However, the requirements for health status of endowment life insurance are not high, the only requirement is the insurance interest relationship between different applicants and the insured, and the operation process is relatively simple. In this way, a policy can pass on the family wealth and increase the value through the conversion of the insured during the protection period. However, there are not many products with this feature in the current market.
The introduction of the insured convertible product can pass on the insurance benefits as family assets to the future generations, which can support the family and children's expenses for a long time and reduce their economic burden of having children. Flexibly making 20, 30 and 40 year cash flow plans and retirement arrangements for oneself and the family. This is a good way to accumulate more wealth. At the same time, it increases the flexibility of a policy, has the opportunity to extend the policy period and accumulate more expected policy value.
4
Can insurance claims be combined with trust?
The comprehensive strength of insurance companies is one of the major factors affecting customer choice, but insurance claims service is also an important factor that consumers mostly concern about, and it depends on the company policy. For example, the way of claim (compensation and payment), the actual effect of claim, the scope of claim (the scope of serious illness, the scope of minor illness, exemption), the procedure of claim settlement and the basis of claim, etc. Some savings insurance products possess the function of life insurance trust.
Life insurance trust is a kind of trust property with insurance compensation or life insurance policy as trust property. The trustor (usually the policyholder) and the trust institution sign a life insurance trust contract. The insurance company delivers the insurance compensation or the expired insurance money to the trustee. The trustee manages and uses the trust property in accordance with the trust contract. At the end of the trust period, the trust assets and operation income are paid to the beneficiary of the trust.
The combination of life insurance and trust has multiple benefits. First of all, insurance products have the dual function of saving and investment management. Most of the life insurance, which takes the death of the insured as the only claims criteria, has the savings feature. Therefore, the combination of life insurance and trust can achieve the dual function of saving and investment management. Secondly, life insurance trust has the function of tax exemption. In principle, the insurance benefits of life insurance are tax-free, which is more attractive to policy holders who want to achieve the purpose of tax preference.
To conclude: As for people's work and life, insurance is inseparable. We should comprehensively consider our own investment needs and the actual situation to choose appropriate savings products, high-quality services and reasonable protection. It is not advisable to use single index to measure the quality of products. Through choosing insurance appropriately, we can obtain real benefits. Moreover, for friends of any ages, personal income, investment needs, future life planning, etc. should fully take into account when choosing insurance products.
Insurance product itself is very complex, and insurance services are also complex and trivial. It is easy to buy unsuitable and expensive products if customers only rely on their own learning and research, which is difficult to settle claims. When we choose products, we should first consult the professionals, analyze our own needs, financial planning and select high-quality products and services. After doing this, we can clearly understand the risks, choose proper insurance and enjoy life.
"Which one is more suitable for me, XX product or XX product?"
"Can the dividend of XX product achieve the expectation?"
Recently, we have received plenty of messages expressing their curiosity about "how to choose the savings insurance". Although they have studied a lot, there is still some confusion. In view of these problems, we think it is necessary to write an article to share those valuable information with you.
We have sorted out and listed four important key indicators that should be attached great importance to when purchasing savings insurance. When you are planning on buying a product, good decision can be made as long as you use the four indicators to analyze and select the right product.
First of all, let's briefly introduce what is savings insurance: savings insurance is designed to combine the insurance function with the saving function by the insurance companies. The main forms include life insurance, pension insurance and education insurance. In addition to the basic personal security function, there is also financing and savings function. If there is no accident during the insurance period, the insurance company will return a sum of money to the insurance beneficiary at the agreed time, just like accumulating small premium for later withdrawals, which is very similar to depositing in installments while withdraw in lump sum in bank. In order to meet the investors' steady and high-yield investment demand, insurance companies have launched new saving products. Besides the traditional protection function, the savings insurance can value preservation of premium, encashment regularly with dividend and has long investment cycle.
Four key indicators
1
Is the solvency ratio of insurance companies lower than 100%?
Solvency is the ability of an insurance company to repay its debts. An insurance company shall have capital commensurate with its risks and business scale to ensure that the solvency ratio is not less than 100%.
Calculation formula: solvency ratio = actual capital / minimum capital of insurance company.
The actual capital of an insurance company refers to the difference between admissible assets and liabilities.
The minimum paid-up capital requirement: Regulatory authorities require that insurance companies holding a certain amount of capital in order to absorb the adverse effects of asset risk, underwriting risk and other related risks on solvency.
The solvency ratio is neither equal to the strength of the insurance company, nor fully reflect the operation status of the insurance company. However, we can see whether the strategic planning of the insurance company is rash. If the solvency ratio is too low, it is more likely for the company to have operational problems. When choosing insurance products, customers should choose the strong, long history and big companies. However, you should be cautious for the small and medium-sized companies and you should avoid to choose companies that are too aggressive or currently facing problems. When choosing insurance products, customers should prefer insurance companies that meet the following conditions: 1) their solvency ratio should be more than 200%; 2) their shareholders with sufficient capital strength and they are willing to continue to increase capital; 3) the company should operate steadily and have reasonable scale of insurance products.
2
Is the historical fulfilment ratio of participating insurance open to the public?
Is the actual amount of dividend distributed the same as the amount shown in the proposal? This is a matter of great concern to all of us.
Fulfilment ratio that can show the ability to distribute dividend of insurance products. In order to let customers know whether the dividends reach the expected amount, and let customers measure the performance of the actual non-guaranteed benefits within a specified period of time. The insurance company will publish the actual bonus situation, that is, the dividend realization rate. Through the "fulfilment ratio", the customer can know the ratio between the expected amount and the actual distribution amount in the proposal.
Calculation method of "fulfilment ratio"= actual amount / expected amount shown in the plan
There are two kinds of participating life insurance products in some company: cash dividend products and reversionary bouns products. Cash dividends, sometimes called annual dividend, which are cash; and reversionary bouns, which guarantee the face value.
Cash dividend products usually distribute annual dividends and final dividends, and the fulfilment ratio of cumulative annual dividends and final dividends can be found on the official website of insurance companies. The annual bonus will be distributed at regular intervals every year and accumulated in the customer's account to generate interest; the final dividend will be paid at the time of claim settlement, surrender or expiration.
The reversionary bonus product will distribute the bouns and the final dividend. The " fulfilment ratio" of the reversionary bonus (since the issuance of the policy) will be calculated by dividing the sum of the reversionary bonus accumulated by the expected amount shown in the proposal. The "fulfilment ratio" of the final dividend will be calculated by dividing the cash value of the final dividend actually paid in the past year by the expected amount shown in the proposal.
The insurance proposal provides customers with a certain rate of return, but the past fulfilment ratio of the dividend policy can provide a good and important reference index for customers. The amount of dividends will be determined according to the past experience and future prospects of several factors, including investment report, claim settlement, surrender and expense. An analysis of the previous non-guaranteed cash fulfilment rate of an insurance company helps us to judge whether the expected dividend payment is stable and whether the company has a certain financial strength to ensure the interests of customers.
3
Is the insured convertible?
In order to meet the customer needs, the insurance market takes the lead in introducing the life insurance of convertible insured. It extends the functions of insurance products, improves the medium and long-term yield, and resets the payment period, which is similar to the family trust function. In terms of participating insurance products, this type of product has the feature of simple procedures, low threshold, and no extra charge.
In general, policy holder can be converted, but not the insured . It will be too complicated if the insured has been changed, as the insured is the subject of the policy. For example, as for health insurance, the health status of each insured is different, insurance companies can only protect the first insured in current situation. If it is necessary to change the insured, the health status of the new insured needs to be reassessed, and the insurable interest relationship between the applicant and the insured is also required. Therefore, general insurance products do not support this function. However, the requirements for health status of endowment life insurance are not high, the only requirement is the insurance interest relationship between different applicants and the insured, and the operation process is relatively simple. In this way, a policy can pass on the family wealth and increase the value through the conversion of the insured during the protection period. However, there are not many products with this feature in the current market.
The introduction of the insured convertible product can pass on the insurance benefits as family assets to the future generations, which can support the family and children's expenses for a long time and reduce their economic burden of having children. Flexibly making 20, 30 and 40 year cash flow plans and retirement arrangements for oneself and the family. This is a good way to accumulate more wealth. At the same time, it increases the flexibility of a policy, has the opportunity to extend the policy period and accumulate more expected policy value.
4
Can insurance claims be combined with trust?
The comprehensive strength of insurance companies is one of the major factors affecting customer choice, but insurance claims service is also an important factor that consumers mostly concern about, and it depends on the company policy. For example, the way of claim (compensation and payment), the actual effect of claim, the scope of claim (the scope of serious illness, the scope of minor illness, exemption), the procedure of claim settlement and the basis of claim, etc. Some savings insurance products possess the function of life insurance trust.
Life insurance trust is a kind of trust property with insurance compensation or life insurance policy as trust property. The trustor (usually the policyholder) and the trust institution sign a life insurance trust contract. The insurance company delivers the insurance compensation or the expired insurance money to the trustee. The trustee manages and uses the trust property in accordance with the trust contract. At the end of the trust period, the trust assets and operation income are paid to the beneficiary of the trust.
The combination of life insurance and trust has multiple benefits. First of all, insurance products have the dual function of saving and investment management. Most of the life insurance, which takes the death of the insured as the only claims criteria, has the savings feature. Therefore, the combination of life insurance and trust can achieve the dual function of saving and investment management. Secondly, life insurance trust has the function of tax exemption. In principle, the insurance benefits of life insurance are tax-free, which is more attractive to policy holders who want to achieve the purpose of tax preference.
To conclude: As for people's work and life, insurance is inseparable. We should comprehensively consider our own investment needs and the actual situation to choose appropriate savings products, high-quality services and reasonable protection. It is not advisable to use single index to measure the quality of products. Through choosing insurance appropriately, we can obtain real benefits. Moreover, for friends of any ages, personal income, investment needs, future life planning, etc. should fully take into account when choosing insurance products.
Insurance product itself is very complex, and insurance services are also complex and trivial. It is easy to buy unsuitable and expensive products if customers only rely on their own learning and research, which is difficult to settle claims. When we choose products, we should first consult the professionals, analyze our own needs, financial planning and select high-quality products and services. After doing this, we can clearly understand the risks, choose proper insurance and enjoy life.
