At present, more and more people begin to pay attention to insurance, which is worth encouraging. However, when buying insurance, many people will ask, what kind of insurance is better? What should I pay attention to before buying?

So what exactly is dividend insurance? Is it really that good? What should I pay attention to? Next, the senior sister will take everyone to understand!

1. Is dividend insurance really that good?

Dividend insurance means that the insurance company distributes the surplus generated by the actual operation of the dividend insurance business to each policyholder according to a certain proportion, which is generally distributed according to the method of cash dividend or increased dividend, in which the cash dividend is distributed by increasing the insured amount, and the increased dividend means that the distributed dividend can only be received in case of surrender, insurance accident or expiration of protection.

On the surface, it looks very good, but dividend insurance usually hides pits in these aspects:

1. Dividends are uncertain

Even in the Actuarial Regulations on Dividend Insurance, insurance companies must allocate no less than 7% of the distributable surplus to policyholders after the actuarial balance is determined every year.

But how much profit will be generated and how much surplus can be distributed in a year, and finally the insurance company will make a decision. Assuming that the dividend business of the insurance company is very good, we may receive some dividends, and assuming that it is not well managed, we will not be able to receive dividends.

Moreover, many clauses of dividend insurance clearly point out that the policy dividend is uncertain, so friends don't have to place great expectations on the dividend.

2. Bundled sales

Dividend insurance is usually bundled with some types of insurance, such as accident insurance, critical illness insurance, medical insurance, etc., which makes friends mistakenly think that one policy can get all the protection, but in fact, many of these bundled products are not comprehensive in coverage and have a small proportion of compensation, which means it is expensive and impractical, so friends might as well be alone.

Generally speaking, dividend insurance is not a cost-effective insurance, so it is not recommended to choose it.

Second, apart from dividend insurance, what financial insurance is worth buying?

Most people buy dividend insurance, in fact, in order to get further income. Compared with dividend insurance, Senior Sister recommends that you buy annuity insurance or increase whole life insurance.

Annuity insurance can be regarded as a lump sum of money that we invest in the insurance company in stages, and the time agreed in the contract with the insurance company is up. After that, we will get a sum of money from the insurance company every year or every month. For example, during the guarantee period, if someone dies unfortunately, the insurance company will still pay a large sum of money to his family.

Moreover, the income and collection time of annuity insurance are written in the contract and fixed at the same time, which will not be affected by market development factors. Assuming that life pension insurance is selected, it will not stop until death, which can provide us with stable cash flow.

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The increased whole life insurance is a life insurance whose insurance coverage increases year by year according to the fixed interest rate, and the fixed interest rate will be clearly stipulated in the insurance contract. Future economic changes and the downward interest rate will not affect it. The assets achieve the purpose of maintaining and increasing value, and the cash value increases rapidly. It can flexibly use the methods of reducing insurance coverage and policy loans to solve the problem of short-term capital turnover, and it can also get a very good cash value if it is surrendered later.

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No matter from the perspective of annuity insurance or incremental whole life insurance, both of them have the function of compulsory savings and financial management. Although both stocks and funds are equipped with financial management functions, there are great risks. However, the income of annuity insurance and incremental whole life insurance is particularly stable, with almost no risks, especially higher security than bank deposits, and the contract is protected by law.

Even if the insurance company goes bankrupt, our policies are still valid. They will be directly transferred to other insurance companies, and the rights and interests of the policies will naturally not be affected. But here we need to remind our friends that insurance is mainly used to provide protection, and financial management is only secondary. Therefore, before we buy annuity insurance or increase whole life insurance, we'd better configure personal protection such as critical illness insurance, medical insurance and accident insurance, so that we can provide comprehensive protection.

If you still can't decide what kind of insurance to buy first, you can read this article, and I believe you will find the answer:

With so many types of insurance, which one should I buy first?

Written at the end

I am a schoolmaster who talks about insurance and focuses on objective, professional and neutral insurance evaluation;

If the above content has not solved your problem, you can also come to WeChat official account Xueba and ask me about insurance.

I will give you the most professional advice based on years of experience in configuring insurance for 1W+ families.

WeChat official account: Xueba said that insurance costs less, so buy the right insurance!