There are two main differences between bank wealth management and insurance financing:
I. Different security functions
Bank wealth management products do not have a guarantee function, and insurance financing has a death insurance guarantee function. If the payment for variable life insurance is fixed, part of the death benefit of the policy is the fixed minimum death benefit agreed by the policy, which is borne by the reserve account, and part of which is the investment income of the investment account, depending on each year. In the case of capital gains, the cash value of the policy will change accordingly; the payment of universal life insurance is more flexible, and the insured can choose to pay any amount of premium at any time after paying the first premium, as long as the cash value of the policy is sufficient to cover the relevant costs of the policy. In addition, you can set the death guarantee amount according to your own needs, that is, the proportion of self-distributed premiums in the reserve account and investment account.
Second, the income is different
Bank wealth management products are mainly for single interest, that is, a certain period of time, a certain amount of deposits will have a relatively fixed income space. Whether it is fixed income or floating interest, bank wealth management products are taking advantage of the profit during the financial period. Insurance wealth management products are different, most of them take compound interest calculations. That is, during the insurance period, the cash value in the investment account is profitable in years.
Experts said that the wealth management products launched by various insurance companies and banks are very rich. Specific to each bank and insurance company, the fund income, cash withdrawal regulations and fees are different, depending on their needs.