Participating insurance is not a scam.

Insurance dividends refer to the fact that when purchasing a participating life insurance policy, the insurance company will distribute dividends to the policy holders in a certain proportion of its actual operating production surplus.

In other words, you can enjoy the operating results of the insurance company.

Participating insurance is an investment and financial management type of insurance. The China Insurance Regulatory Commission stipulates that insurance companies should distribute at least 70% of the distributable surplus of participating insurance to customers every year.

There are two ways to distribute dividends: cash dividends and incremental dividends.

Cash dividends are the distribution of surplus directly to policyholders in the form of cash.

Incremental dividends refer to dividends distributed every year during the entire insurance period in the form of an increase in the insured amount.

At present, most domestic insurance companies adopt the cash bonus method.

Under the cash dividend distribution method, dividends can be received in a variety of ways: cash, accumulated interest, offset against premiums, and purchase of paid-up additional insurance.