Dividend insurance refers to a new life insurance product in which an insurance company distributes its actual operating results to the insured in a certain proportion. (Excerpted from the Interim Measures for the Administration of Dividend Insurance of China Insurance Regulatory Commission)

The main feature of dividend insurance is that the insured can not only obtain the insurance liability stipulated in the traditional policy, but also enjoy the operating results of the insurance company, that is, the distribution of the surplus from participating in the investment and operation activities of the insurance company.

There is no difference between dividend insurance and non-dividend insurance, such as death insurance and survival insurance payment. The insurance content, insurance amount, policy value and insurance premium are clearly stipulated in the contract. This part is what we often call "guarantee"-no matter what the business situation is, when there is an insurance liability accident or the insurance expires, the insurance company will cash it to the customer.

Dividends, that is, the part of customers' investment income, are "linked" to the operation of insurance companies: the profits of insurance companies are high, and the profits of customers are "rising", which is not capped; Insurance companies have low profits and customers' income is also low. The only risk the customer bears is that there may be no dividend distribution.

1. The least risky investment

Customers who are insured with dividend insurance can participate in the dividends of insurance companies on the premise of taking minimum risks.

(1) Dividend insurance provides customers with the opportunity to share the operating results of insurance companies, so it can effectively avoid the risks brought by interest rate fluctuations and inflation to both customers and insurance companies. Especially in the unpredictable financial market, it is difficult for a single customer to make professional analysis and prediction of market changes due to various factors. Insurance companies have a group of experienced professional investment and risk control personnel, which can overcome the possible losses caused by market fluctuations more effectively than ordinary customers.

(2) Enjoy the advantages of institutional investment and expert financial services of insurance companies. Insurance companies are the largest institutional investors in the financial market. Compared with other investment methods, insurance companies have the advantages of large capital scale, wide investment channels, many professionals, rich investment experience and smooth and fast information. Therefore, personal financial management through professional investment channels of insurance companies will help to spread risks, reduce costs and increase profit opportunities.

Therefore, dividend insurance provides customers with a good opportunity to effectively avoid risks and obtain maximum benefits.

2. Sources of dividends

The dividend of dividend insurance comes from the distributable surplus generated by spread interest, death interest and handling fee interest. Spread. Refers to the surplus generated when the actual investment return rate of an insurance company is higher than the expected investment return rate; The difference between death and surplus refers to the surplus generated by the insured when the actual number of deaths in this insurance company is less than the scheduled number of deaths; Fee difference refers to the surplus generated when the actual operating expenses of an insurance company are lower than the expected operating expenses. Among them, interest margin is the main source of dividends.

Because life insurance has the characteristics of long insurance period and uncertain risks, insurance companies mainly consider three factors when determining the rate: predetermined mortality rate, predetermined interest rate (predetermined return on investment) and predetermined expense rate. Once the rate is determined, it cannot be changed at will. Life insurance policies often last for decades. In such a long time, it is obvious that the actual situation cannot be completely consistent with the expected situation. Once the actual situation is better than expected, the above-mentioned spread interest, dead interest or fee interest will appear (conversely called spread loss, dead loss or fee loss). Insurance companies distribute the profits generated by spreads, dead interest and fee interest to customers according to a certain proportion, which is called "three-difference dividend", which is the source of dividends.

3. Dividend distribution

At present, the internationally popular dividend distribution methods are as follows:

1. cash reward-customers will receive cash reward directly;

2. Cumulative interest-dividends are kept in the insurance company, and are stored in the form of compound interest every year according to the cumulative interest rate of dividends determined by the insurance company, and paid when this contract is terminated or the applicant applies;

3. Payment of premiums-the bonus is used to pay the premiums payable in the next period, and if there is still a balance after payment, it is used to pay the premiums payable in subsequent periods;

4. Purchase paid-up increase insurance-according to the age of the insured at that time, the bonus will be used as a one-time insurance premium, and the insurance amount will be increased according to the same contract conditions.

China Life Insurance Company adopts the first two methods, namely cash dividend and accumulated interest.

According to the regulations of the CIRC, insurance companies should distribute at least 70% of the distributable surplus of dividend insurance in the current year to customers, and insurance companies can only keep 30% at most.

In the specific distribution process, different dividend policies will make different contributions to spread interest, death interest and expense interest in different years. The insurance company will decide the allocation amount according to the principle of payment.

At the same time, after the end of each fiscal year, the insurance company will. Submit the balance sheet, annual report on dividend insurance, dividend distribution, income statement, income distribution and expense distribution statement to the national insurance regulatory agency. It will also send a dividend performance report to each customer, explaining the investment income, current year's surplus and distributable surplus of this kind of dividend insurance, the dividend amount due to this customer and its calculation basis and method.

4. Advantages of dividend insurance

(A) Chinese mainland new concept products, in line with international trends.

It is an important symbol of China's insurance industry in line with international standards, and it will be a "new fashion" in the life insurance product market. It is a financial product that links the operating results of insurance companies with the interests of customers, and meets the current diversified financial service needs.

(2) It has dual functions of guarantee and investment.

1. The guarantee function has not been weakened, which is a commitment to the basic needs of customers;

2. Traditional products have a fixed predetermined interest rate and the distribution of benefits is basically fixed. Dividend insurance not only guarantees the predetermined interest rate. Dividends can also be determined according to the annual operation of dividend insurance business;

3. Not only take risks for customers, but also expand more profit space for customers.

(3) high product transparency.

Compared with traditional products, it has higher transparency, which is manifested in that the company sends dividend performance report to the insured at least once a year.

(4) Expert financial management, effectively control investment risks, focus on capturing profit opportunities, let customers sit back and relax, and expect to enjoy higher returns.

1. The investment account is independent, managed by experts, and the capital operation is safe and efficient, which can be used for both investment funds and bonds; It can operate in both the primary market and the secondary market, with smooth investment channels and flexible investment methods.

2. Compared with ordinary investors, experts have higher investment professionalism and sufficient information, which can reduce investment risks and increase profit opportunities, and both customers and companies can enjoy the return on investment.