According to the staff of other institutions, dividend insurance refers to a type of life insurance in which the insurance company distributes the distributable surplus of the insurance to customers in the form of cash or value-added dividends after the end of each year.
Like investment insured insurance, dividend insurance also has both risk protection and investment functions. However, “investment-linked insurance” customers all share investment income and sharing. By contrast, the benefits and risks of dividend insurance investment are shared by insurance companies and customers.
The reporter learned that another difference between dividend insurance and “investment-linked insurance” is that “investment-linked insurance” highlights the investment function and the ability to guarantee risks is relatively weak. Therefore, the investment operation is relatively radical and the income is relatively high, but the risk is also Big. Dividend insurance is more focused on insurance, and the level of income is relatively low.
At the same time, dividend income and “investment-linked insurance” have different sources of income. Most of the premiums for “investment-linked insurance” are used for investment, and the operating model is somewhat like a fund. The premiums of the dividend insurance are put into one account operation. After the end of each year, the claims balance, withdrawal reserve, operating expenses and other payments are deducted from the account balance, and the surplus is allocated according to the ratio agreed by the insurance company and the policyholder in advance.
Buying a bonus insurance policyholder can get bonuses through cash, accumulated interest and premiums, etc., or you can earn bonuses by increasing the amount of insurance. It is worth noting that insurance companies regularly publish the field value of specific “investment-linked insurance” products, while dividend insurance only sends annual income reports to policyholders every year, so the income transparency is not as high as “investment-linked insurance”.