After buying basic protection, many friends will think about buying another wealth management insurance product.
After the scheduled interest rate was lowered, the popularity of participating insurance actually increased.
Because it combines the two qualities of protection and income, it is actually favored by many people.
So, which groups of people are suitable for buying dividend insurance? It's better to see if you need it.
What is Participating Insurance?
Participating insurance, to put it bluntly, means that we can get additional profit dividends from the insurance company for the year.
There are two main types of dividends, cash dividends and incremental dividends.
Cash dividends are dividends that the insurance company will give us directly in the form of cash, and the way to receive them is very flexible, and the policy dividends can accumulate interest, can also be used to pay premiums, and can even be used to pay off the sum insured.
The increased dividend is not to directly distribute cash, but to distribute dividends by increasing the sum insured every year.
This is a bit like increasing the amount of whole life insurance, where the sum insured increases and increases the overall income of the policy.
However, the way it can be received is not flexible enough, and we can only get the dividend by reducing or surrendering the policy.
Therefore, we can see some characteristics of participating insurance.
(A mini program has been added here, please go to the Toutiao client to view)
The first is that you can share the results of your business with your insurance company.
This is arguably its core feature, but it also means that we can receive dividends that are not stable, they can be very high or 0.
The second is both protection and investment.
Because it is essentially a life insurance product, it will provide death benefits and maturity benefits, etc.
So, it allows us to enjoy both protection and investment, so we can combine both.
Then there is the uncertainty in the bonus part.
Because dividends depend on the annual operating conditions of the insurance business, dividends are uncertain and will be affected by various factors such as the performance of the insurance company and the market environment.
Finally, there is the compound interest income.
Who is suitable to buy participating insurance?
After all, participating insurance is also life insurance, so not everyone is suitable for buying one.
We can see what conditions are necessary for friends to buy.
First of all, it is the people who have already bought the basic security.
We also all know that one of the principles of insurance allocation is to buy protection first and then buy financial management.
It is recommended that friends first buy the basic protection of accident insurance, medical insurance, critical illness insurance, and life insurance, and then consider participating insurance.
(A mini program has been added here, please go to the Toutiao client to view)
Secondly, it is the people who have a surplus of money in their hands and can not use it for a long time.
Because the liquidity of participating insurance is relatively weak, in addition to the income from dividends, the only way to receive the cash value of the policy is through policy reduction or surrender.
Therefore, we must avoid the situation that we have no money in hand due to buying dividend insurance.
Finally, it is suitable for people who do not have the habit of saving.
Because in fact, many of our young people do not have a good habit of saving money, and the role of compulsory savings of dividend insurance can actually help us save a good amount of money, and we can get income every year.
Of course, if your risk appetite is stronger, it is not so a priority to buy participating insurance.
And if you don't like too high risk and are more interested in stable returns, then you can consider one.
In general, participating insurance is indeed a relatively popular product now.
However, we must also look at our own needs before buying.
If you haven't even bought basic protection insurance, then you don't need to think about it at all.