The difference between insurance and other wealth management products such as bank deposits, bank wealth management and funds;
1, the basic characteristics are different: wealth management products are pure investment intentions, pursuing the maximum rate of return under acceptable risks, and usually have no guarantee function except the rate of return. Insurance products mainly provide protection functions, such as property insurance and accident insurance. Insurance wealth management products not only provide income function, but also provide protection function, such as universal insurance, which not only provides traditional compensation protection, but also allows customers to pay premiums to generate investment income.
2. Different investment periods: wealth management products are usually short-term and long-term products, but the scale is small. Financial insurance tends to be medium and long-term, and usually the investment period is several years or even decades.
3. The calculation method of income is different: due to the short term, the wealth management products mainly use simple interest calculation, and the yield is relatively fixed. Due to the long investment period of wealth management insurance, most of them adopt compound interest calculation. The rate of return varies according to different product types: the rate of return of traditional products is determined; Dividend-paying products have guaranteed income, and at the same time, it depends on the operating performance of insurance companies (including mortality performance, investment performance and cost control) to decide whether there is additional dividend; Universal products add value to customer accounts according to investment performance and guaranteed income; Investment-linked insurance products simply look at investment performance.
4. The flexibility of early withdrawal is different: wealth management products usually have a fixed term, but they can be redeemed in advance, such as time deposits, open-end funds, etc., and the losses during redemption are small, usually interest losses or loss of selling transaction costs. Surrender in advance is called "surrender", and the general loss may be large (see the terms of the policy for the specific loss level).
5. Different payment requirements: wealth management products are usually paid in one lump sum, and there is no follow-up funding requirement. The traditional and dividend insurance products in wealth management insurance need to pay regularly, that is, renew the premium, in addition to one-time payment. If there is no continuous payment ability, it may lead to the loss of policy withdrawal.
6. Different regulatory requirements: The regulation of different wealth management products may be very different. Insurance is subject to the Insurance Law and other regulatory provisions, trust is subject to the Trust Law, and bank wealth management is subject to the Regulations on the Management of Wealth Management Products. Supervision has higher requirements on the solvency, reserves and investment channels of insurance companies, so the default risk of insurance policies may be the smallest among all products.