From the perspective of insurance salesmen, the traditional life insurance has no direct interest relationship with customers because the insured amount is stipulated in the contract.

but the so-called initial fee is aimed at wealth management life insurance (investment-linked or universal) products. Because it is an account, just like your passbook, the commission ratio is low, which has a direct interest relationship with customers. Because we know that compound interest calculation is superior to simple interest in the long run, but in the first few years, the cardinal number is the key.

The annual premium is 6. Deduct nearly half of the initial fee (different insurance companies, but it will not exceed half, which is stipulated by the CIRC. This initial fee includes the contract cost, commission and the operating cost of the insurance company. The remaining premium is allocated to the customer's account: risk account and investment account. The cost of risk account is mainly for the amount of life insurance, and most of it goes into investment account. If there is a risk, the amount of compensation is: the insurance premium corresponding to the risk account+the account balance in your own investment account. This initial fee varies from insurance company to insurance company, such as 45%, 3%, 2%, 15% and 1%. Some collect for ten years, and some collect for five years. In this way, the long-term expenses equivalent to the management fee of the fund account were collected in previous years, and there will be no more. In order to encourage customers to invest for a long time and pay fees normally, it will also have a continuous payment reward, according to a certain proportion of the annual premium.

on the premise of meeting the customer's protection needs and complying with the insurance rules, I generally advise customers to pay a lower annual premium, so that the initial fee will be reduced accordingly, and your extra money can be invested in the form of additional investment. For example, if you suddenly pick up a wallet or a year-end bonus, you can invest more. This is more flexible than the fixed investment of the fund. The fixed investment of the fund is to buy a fixed amount every month, but the investment and universal can be added in time according to the market conditions and their actual situation.

Further reading: How to buy insurance, which is better, and teach you how to avoid these "pits" of insurance.