However, the life-long compound interest rate of 3.5 should be separated from the increase rate of 3.5 and cannot be confused. The former is IRR, and the latter is the increase ratio of the insured amount.
Dad, let me analyze it with you first:
Life-long compound interest 3.5 Insurance products generally belong to whole life insurance products, which are divided into 3.5 compound interest and whole life insurance.
Whole life insurance, that is, life insurance with a life-long guarantee period, is terminated when the insured dies or is totally disabled.
3.5 Compound interest insurance involves effective coverage and cash value.
1, effective insured amount
The effective coverage of traditional life insurance is determined at the time of insurance, and the premium remains unchanged after payment.
3.5 The effective amount of compound interest in whole life insurance will increase by 3.5% on the basis of the basic amount from the second year.
The longer the time, the higher the effective insurance amount, and the greater the protection the insured gets.
2. Monetary value
The cash value is also called "terminated refund" or "surrender value".
Excellent life-long compound interest 3.5 insurance products, the cash value increases rapidly, and the long-term holding can realize nearly 3.5% annualized compound interest.
It endows whole life insurance with the saving characteristics beyond the guarantee, and realizes the preservation and appreciation of assets.
As for the reliability of such products, it still depends on how you use them and whether you pay attention to these two points when you insure them.
1, long-term holding
Life-long compound interest 3.5 insurance products, the cash value in previous years is less than the premium paid, and early surrender will lose part of the principal.
Therefore, if you want to achieve an annualized compound interest of nearly 3.5%, you have to hold it for a long time.
It will be a great disappointment if we expect it to be used as a bank deposit.
Although there is some flexibility to add and subtract some products, there are still some restrictions.
If the family needs money in the short term, it is better to deposit it in the bank or buy short-term bonds.
2. The safety function is not strong.
Life 3.5 compound interest life insurance products provide life insurance protection, but the protection is not strong.
If you want to transfer the risk of death/total disability by insurance, it is recommended to configure term life insurance, which will have higher leverage.
In addition, although the income is high, there is no guarantee when a serious illness or accident comes.
The above is the analysis of life-long compound interest 3.5 insurance products. Please consult your father if you have any questions!