Commercial pension insurance is divided into four categories: traditional pension insurance, participating pension insurance, universal life insurance, and investment-linked insurance.

1. Traditional pension insurance With the marketization of reservation interest rates for life insurance products, the interest rates of pension insurance will gradually become more attractive in the future.

Advantages: Fixed returns. In the event of zero or negative interest rates, it will not affect the return rate of pension funds.

Disadvantages: Hard to withstand the effects of inflation. Because the purchased product has a fixed interest rate, if the inflation rate is relatively high, there is a risk of depreciation in the long term.

Suitable crowd: relatively conservative, older investors.

2. Participating pension insurance

Participating pension insurance usually has a guaranteed predetermined interest rate, but the interest rate is slightly lower than traditional pension insurance. In addition to fixed survival benefits, participating insurance also has uncertain dividends received every year.

Advantages: Income is linked to the operating performance of insurance companies. In theory, it can avoid or partially avoid the threat of inflation to pensions, allowing pensions to relatively maintain or even increase in value.

Disadvantages: Dividends are uncertain, and you may suffer losses due to poor operating performance of the company. You should choose an insurance company with strong strength and good reputation to purchase this type of product.

Suitable people: Investors who are relatively conservative in financial management, unwilling to take risks, prone to impulsive consumption, and relatively emotional.

3. Universal life insurance

For this type of product, after deducting part of the initial fee and protection cost, the premium goes into the personal investment account and has a guaranteed minimum return, which is currently generally 1.75%. ~2.5%. In addition to the agreed minimum benefits that must be met, there are also uncertain "additional benefits".

Advantages: There is a guaranteed interest rate at the bottom and no cap at the top. The settlement interest rate is announced every month and settled on a monthly basis. Compound interest growth can effectively resist the impact of bank interest rate fluctuations and inflation. The account is relatively transparent, deposits and withdrawals are relatively flexible, additional investment is convenient, and life insurance protection can be increased or decreased according to different age groups. Universal life insurance provides the flexibility to respond to changes in income and financial goals.

Disadvantages: Flexible deposits and withdrawals are advantages and disadvantages. For investors with poor saving habits and insufficient self-control, they may not be able to save enough for the pension they need.

Suitable people: Investors who are relatively rational, insist on long-term investment, and have strong self-control ability.

4. Investment-linked insurance

Investment-linked insurance is a long-term investment method. It has accounts of different risk types and is linked to the returns of different investment varieties. There is no guaranteed return, the insurance company only charges account management fees, and the customer is responsible for all profits and losses.

Advantages: Focusing on investment, taking into account protection, expert financial management selects investment types, and can flexibly switch between different accounts to adapt to different situations in the capital market. As long as you insist on long-term investment, it is possible to achieve high returns.

Disadvantages: It is the type of investment risk with the highest risk among insurance products. If you cannot withstand short-term fluctuations and make blind adjustments, you may suffer huge losses.

Suitable people: relatively young investors who can bear certain risks and adhere to long-term investment concepts.