7 years as an insurance broker and MDRT member
The service customers are all over 20 provinces, municipalities and autonomous regions across the country
Article 117 of the original article
Friends who have bought increased life know that there is a 20% reduction in increased life, but most people don't know that there are 4 rules for this 20%.
Different rules have a great impact on how much we can actually reduce the amount of insurance we can receive each year.
In fact, the reduction of insurance for increased life products in the market was quite flexible, and there was no 20% limit.
Subsequently, the regulatory authorities pointed out that the insurance reduction of the increased life products of some insurance companies is flexible and has no proportion limit, and there is a risk of long-term insurance and short-term insurance, and subsequently stipulates that the insurance reduction ratio of the increased life products shall not exceed 20%.
Since the regulation only stipulates the 20% ratio, but does not stipulate what is the basis, the rules for reducing insurance are different for different insurance companies.
These 4 types are: 20% of the sum insured at the time of the contract, 20% of the total premiums paid, 20% of the corresponding annual sum insured and 20% of the accumulated premiums paid.
Features are as follows:
The specific content should be combined with examples, just looking at these 4 nouns, it is a little complicated, in fact, when I first came into contact with it, I couldn't figure it out.
01
20% of the sum insured at the time of contract entry into force
The friendliest, incremental, 5 can be subtracted at a time
Among these 4 types, the most common and most used by insurance companies on the market is 20% of the insured amount when the contract takes effect, and it is also the best 20% among these 4 types.
Let's take an example, a mother insures a 0-year-old child with an increased life, 50,000 for 10 years, and the total premium is 500,000.
The detailed benefit diagram is as follows:
At the beginning of the insurance, I saw that the basic insurance amount (column C) was 388700, and the basic insurance amount was determined at the time of insurance, and this will not change.
The 20% received refers to the basic insurance amount (column C), and the actual amount received is the cash value of the corresponding year.
As the policy year grows, the cash value increases each year.
This policy reduction rule can be understood as follows:
The amount received each year cannot exceed 20% of the cash value before the policy reduction in the current year.
Actually, it's still very winding, let's look at the chart again.
Annual policy reduction limit (column G) = cash value of the year before policy reduction (column E) * 20%.
Like what
In the 20th year, 20% of 692,500 = 138,500,
In 25 years, you can receive 20% of the 802,600 on the chart = 160,520.
In this way, the further you go, the greater the absolute value of the amount you will receive.
It can be claimed in as little as 5 years, and the cash value after the 5th year = 0.
Representative products:
Beijing Life Jingfu Xinxiang
Fosun Prudential Star Yingjia (Tiger Roar Version)
Monopoly (3.0)
Sunshine Life Xin enjoys sunshine
Sino British Life Xinxiang Future 3.0 (Ultimate)
02
20% of Total Premiums Paid
Fixed, 20% of the total premium remains unchanged
After the expiration of the payment period, the total premium remains unchanged, in the above case, it is 500,000.
Therefore, the policy reduction limit = accumulated premiums paid * 20% = 100,000.
No matter how much the cash value grows, it can only reduce the total premium by 20% per year, which is 100,000.
This 20% is best understood.
Representative product: Haibao Life Insurance Xin Xiyue
03
20% of the annual sum assured
The more you minus, the less
This is different from the first part of the "Basic Sum Insured (Column C)" in the first part, which increases every year.
Let's take this graph as an example, we can see that the numbers of [Current Year Sum Insured (Column D)] and [Cash Value (Column E)] are basically the same, and they also increase synchronously.
In fact, the amount we withdraw is also 20% of the cash value of the corresponding year (column E).
However, after receiving it, the cash value of the following year will be reduced, and the same amount of "Column D of the current year's sum assured] will also be reduced.
Therefore, if you take 20% every year in a row, [20% of the corresponding annual sum insured] will be less and less.
If you want to receive more in the future, you can choose to surrender the policy completely.
Representative product: Lujiazui Guotai Hengtai Exclusive (Platinum Edition)
04
20% of accumulated premiums paid
The more you minus, the less
This is different from the [total premium] mentioned earlier.
[Cumulative Premiums Paid]: After the policy is reduced and withdrawn, the cumulative premiums paid will be recalculated and gradually decreased.
For example:
The same is 50,000 for 10 years, and before the first reduction, our cumulative premium is 500,000.
In the 15th year, we can reduce the insurance by 20% of 500,000, which is 100,000.
But at this point, our accumulated premiums began to decrease. For example, in the chart, it became 420,000 in the 15th year.
The accumulated premiums paid by each insurance company will be automatically re-calculated after the policy reduction.
In the 25th year, we can only reduce the insurance and withdraw cash according to 420,000 * 20% = 84,000.
By analogy, the amount of policy reduction [20% of the accumulated premiums paid] will gradually decrease each year.
If you want to receive more in the future, you can choose to surrender the policy completely.
Representative products: Fude Life Xinxiang No. 1, Fude Life Xinxiang No. 3
05
To sum it up
The most friendly: [20% of the basic sum assured when the policy is in effect], reduced 5 times, the further back, the greater the absolute value of the amount received;
The most fixed: [20% of the total premium], only 20% of the total premium can be reduced each time, and in the later stage, the number of reductions is more.
Because the cash value of the policy is increasing year by year,
When the policy is reduced earlier: [20% of the premium paid] is better;
When the reduction time is relatively late: [20% of the basic sum assured at the beginning of the policy] is better.
In addition to the partial reduction, the increased life can also be [fully surrendered], which is not subject to the 20% limit.
You can also choose [Policy Loan],
In the future, if you need a temporary transition of money at a certain point in time, you may only need to use it for two or three months, but you don't want to reduce the guarantee and withdraw cash, because after all, the cash withdrawal part of the guarantee will not be able to continue to enjoy the 3% compound interest income.
At this point, we can do this through the policy loan function. The maximum amount that can be borrowed each year is 80% of the annual cash value. This allows you to have the money to make a temporary transition without sacrificing the appreciation of future policies, giving you the best of both worlds.
If you feel that the policy reduction rules for increasing whole life are too complicated, or if you want to match a product that is more suitable for you, you can contact me directly.
In the industry for 7 years, I have done a detailed comparative analysis of almost all the "increased life" and "pension" on the market, and the customers are also in 20 provinces and municipalities across the country