Every reporter: Tu Yinghao, Zhang Yi, Li Yuwen
"Currently, the best-selling product is China Post's Nian Nian Hao Postal Insurance Whole Life Life C Whole Life Insurance. This product has a sales limit. You should come and buy it as soon as possible after your funds are received." Recently When a reporter from " Daily Economic News " inquired about financial products as an investor at a Postal Savings Bank outlet, a financial manager recommended an insurance product. He said that compared with other "non-principal guaranteed" products, Bank financial products, this kind of insurance can lock in long-term returns, and the most important thing is that it is risk-free.
With the implementation of new asset management regulations, so-called "capital guaranteed financial management" has withdrawn from the stage of history, and the advantages of more stable financial management insurance products have become prominent.
"Last year, many consumers allocated part of their funds to insurance products. Under normal operating conditions of the insurance company, the cash value of the insurance products is guaranteed. For example, after buying a whole life insurance for 20 or 30 years, Its compound interest can reach 3.45% or even 3.48%, which is still very attractive to consumers who pursue long-term stable returns," Xu Yuchen, a senior actuary, told a reporter from the Daily Economic News.
But on the other hand, the losses caused by early surrender of insurance products cannot be ignored. Some insurance experts said: "If the short-term expected annualized income is not ideal and the policy is surrendered midway, even the principal may not be guaranteed. Taking a certain incremental whole life insurance product as an example, if the death and total disability insurance benefits are not triggered, In this case, not only will there be zero income in the first five years after taking out the policy, but the principal will also be lost if the policy is surrendered. If the policy is surrendered in the first year, the principal loss will be nearly 60%.
"Lock-in long-term gains when interest rates fall"
Whole life insurance will become a loss. The outlet's flagship product
Recently, when visiting bank outlets in Shanghai and Chengdu, reporters from "Daily Economic News" noticed that many outlet financial managers focused on recommending insurance products when recommending hot-selling products, especially whole life insurance products. Highly recommended.
A financial manager recommended the "5-year payment, annual premium of 30,000 yuan" insurance plan. When calculating the insurance benefits, he pointed out that based on the cash value at the end of the year, the cash value in the fifth year would be 151,164 yuan. Exceeding the premium paid, the cash value has continued to grow since then, reaching 188,160 yuan in the tenth policy year. A simple calculation IRR (internal rate of return) is about 3.28%. For the insurance protection part, the death and total disability insurance benefit of this insurance is 3.3% per year. % increase, the insured amount is relatively sufficient. Taking the fifth policy year as an example, the death insured amount is 240,000 yuan.
Picture source: Photographed by Tu Yinghao, a reporter.
"This product has been selling well recently, and the annual payment is 50,000 yuan. , 100,000 customers. "The financial manager also said that the sales plan for this product is before the end of March, but if the national sales limit is reached in advance, it will not be available.
Why are whole life insurances so popular through bank channels? A bank financial manager thinks , mainly due to two points: First, this insurance product locks in long-term returns under the current situation of falling interest rates; second, compared with other bank financial products with uncertain returns, insurance products are almost "zero risk" . Xu Yuchen said in an interview:
After the new asset management regulations, some consumers are worried about financial products that do not have guaranteed cash value, so they prefer insurance with guaranteed cash value. For example, the long-term compound interest rate of whole life insurance can reach 3.4%, or even 3.45. % or above, in terms of income, it is still difficult for other financial products to achieve the income guaranteed by cash value. This is still very attractive to some consumers who pursue long-term stable income.
It is understood that the essence of incremental whole life insurance is. It is a type of whole life insurance product. When the premium is constant, the insured amount of the incremental whole life insurance will continue to increase over time. That is, the older you are, the corresponding insured amount will be more and more. If you surrender the policy, you can receive more. Corresponding cash value.
Xu Yuchen pointed out: “If the cash value of an insurance product cannot be guaranteed, it means that the insurance company is bankrupt or insolvent, and even if this happens, there is still an insurance protection fund. Therefore, insurance products are more robust than other financial products."
"Connect with customers who have previously made 5-year treasury bonds and deposits"
The expected return of savings insurance in five years exceeds 4%
For customers seeking short-term financial management, there are also bank outlets that promote fixed-payment endowment insurance or annuity insurance Most of the products have a term of 5 years, and the annualized return after 5 years is more than 4%.
"You can save it as a time deposit, and the contract will clearly indicate how much it will cost to withdraw in different years. "Many financial managers said so.
The financial manager of the Shanghai branch of Bank of China told reporters: " is more recommended to customers who used to make 5-year treasury bonds or 5-year deposits. Now they are more recommending this kind of savings insurance. "
A short-term endowment insurance product introduced to reporters by a financial manager of a large state-owned bank, with a single payment of 5 years, and the expected return of the client at the end of the period is 4.1%-4.2% (the interest rate varies according to age). After three years The expected returns for one year and four years are 2.63% and 3.54% respectively.
Another recommended long-term lifelong endowment insurance has a compound interest rate of 3.5% per year. Part of the funds can be withdrawn midway, which is relatively flexible, and the remaining part remains at 3.5%. Income level.
“If you need money urgently during the process, you can choose to pledge your insurance policy. "A financial manager mentioned when introducing this type of product to reporters, "It is equivalent to a loan, with an annual loan interest rate of about 5%, and the product still earns interest, which can cope with temporary capital turnover. "
"Daily Economic News" reporter also learned during the visit that some bank branch managers recommended universal insurance that can "guarantee principal and interest". A financial management manager at a joint-stock bank branch focused on recommending a universal insurance." One-time deposit, the threshold is low, 10,000 or 20,000 is acceptable, and the capital is guaranteed after one year. It is similar to the previous interest-based products. After five years, you can get a maximum return of 4.62% . ” He also emphasized, “Guaranteed capital and interest are written into the contract, and the guaranteed rate of return is the guaranteed interest. "
A huge red poster posted at the door of another major bank outlet showed the words "Estimated income in three years starts at 4.0%", "Estimated income in five years starts at 4.3%", "Estimated income in six years starts at 4.6%", and begins with For example, the principal of 100,000 yuan was used to calculate the expected income of each product, which attracted passers-by to stop and watch. When the reporter entered the outlet for consultation, a financial manager said: "This universal insurance is in a rush to buy. is no longer available in three or five years. "
Picture source: Photo by reporter Zhang Yi
The financial manager suggested: "In the past two years, interest rates have been trending downward. For example, for 5-year products, the annualized rate of return in the first two years can reach 4.7%. Now it's only 4.3%. You can plan some of the idle funds that you don't need to use temporarily as long-term products to lock in the rate of return in advance. "
"The starting products are still mainly 'annuity + universal insurance'"
The interest rate level of annuity insurance has declined.
In addition to the bancassurance channel, which focuses on incremental whole life insurance and other financial insurance, in the individual insurance channel, "annuity + Universal insurance" dual primary insurance combination is still the main product type that has made a good start in the insurance industry this year.
However, judging from the flagship products of several large insurance companies, the appeal of the internal rate of return of only annuity primary insurance is still very limited.
According to the Huajin Securities research report, the IRR of the 2022 annuity primary insurance products, which are good starters, show that China Life Xinyu Zhenxiang 1.77%, Ping An Yuxiang Wealth 1.74%, CPIC Xinxiangshicheng (Celebration Edition) 1.57%, Xinhua Huijinxiang 1.93% and Taiping Guoxi Shixiang 1.74%, which are +5BP, +8BP, -4BP, -5BP, and -3BP respectively compared with last year’s main products. Overall, there is little change compared with previous years.
Mr. Liu, 30, purchased a certain insurance. For example, take the enterprise's good start annuity insurance as follows:
invest 100,000 yuan every year for three years and guarantee it for 8 years. At the age of 35, Mr. Liu can start to receive a survival benefit of 60,000 yuan for 3 consecutive years, a total of 180,000 yuan. At the age of 38, when the contract protection period expires, you can receive a lump sum of 152,300 as maturity payment. Calculated through IRR, the rate of return of this policy is 1.74%.
In recent years, the global low interest rate trend and domestic asset yields have continued to decline. In order to cope with the possible risk of interest rate loss , regulators have lowered the assessment interest rate. Previously, high-yield annuity insurance has withdrawn from the stage of history. According to industry insiders, the continuous decline in the predetermined interest rates of insurance products has affected the competitiveness and attractiveness of insurance products to a certain extent.
Judging from the above-mentioned successful products of large insurance companies, the universal insurance account settlement interest rate remains at 5.0%, which means that if customers also purchase universal insurance accounts, the rate of return under long-term compound interest appreciation is relatively considerable. According to calculations, after 40 years of compound interest appreciation, the average annual rate of return is 4.38%. But it's worth mentioning that there is uncertainty about this benefit. If calculated based on the 2.5% guaranteed interest rate of the universal insurance account, after 40 years of compound interest appreciation, the annual rate of return will be 2.31%.
Regarding annuity insurance, Xu Yuchen believes that consumers have two main focuses when purchasing:
One is longevity risk. As life expectancy increases, both individuals and the country are under great pressure. Funding can be achieved through pension financial management Long-term accumulation;
Second, it is a product that is connected with the retirement community, and can obtain priority occupancy in the retirement community.
Long-term financial insurance returns to traditional offline channels
Talking about the continued popularity of incremental whole life insurance, an insurance company person pointed out that incremental whole life insurance has both protection and savings functions, providing customers with guaranteed and sustainable growth protection. The longer you have, the higher the protection you can get. At the same time, the cash value of the policy will grow steadily throughout life and will not be affected by future interest rate declines and market fluctuations. It can meet customers' dual needs for risk protection and wealth management.
In fact, this type of whole life insurance was once quite popular on the Internet and other channels. "The end of 2020 will be busy with the reform of critical illness insurance, the end of 2021 will be busy with annuities, and the countdown to the implementation of new asset management regulations will be worthwhile. A product with a lifetime compound interest rate of 3.5% is worth owning." On the afternoon of December 31, 2021, an agent said in the circle of friends.
Affected by the new regulations of Internet insurance , at the end of last year, life insurance and annuity insurance with an insurance period of more than ten years were removed from the shelves. A group of Internet celebrity hot-selling financial insurance products, represented by whole life insurance, set off a "stop speculation" trend. .
takes the Golden Satisfaction Premium Edition incremental whole life insurance, which is highly praised for its “high cash value”, as an example. An agent told reporters: "The cash value of this product grows rapidly, and the actual rate of return is as high as 3.49%. Taking ten years as an example, in the 8th to 9th years of the policy, the cash value exceeds the total premium. In other words, Before the premium is paid, you have already started to make money, and the cash value grows faster in the later stages. For example, when you are 60 years old, the cash value exceeds 2.4 times the premium paid. In terms of life insurance rights, the insured amount is calculated annually. An increase of 3.8%.
Some people in the industry said in an interview that due to the new regulations on Internet insurance to return to the basics of protection, investment-linked insurance and universal insurance with strong financial management attributes are not included in the scope of Internet personal insurance products. They were previously included in whole life insurance, etc. Small and medium-sized companies that are quite aggressive in developing insurance types are restricted in their business development, so this type of long-term insurance will also be sold through traditional channels such as agents and bancassurance companies.
"Pursue long-term, stable returns" investor adaptation
Expert tips. : Surrendering the policy midway may not guarantee the principal
For consumers purchasing insurance products, an insurance expert pointed out that the advantage of insurance lies in its long-term nature and certainty, which determines that it is more suitable for consumers who "pursue long-term and stable returns" Configuration, first of all, the funds must be long-term, and secondly, the income requirements should not be particularly high..
“If the short-term expected annualized income is not ideal and the policy is surrendered midway, even the principal may not be guaranteed. "The above-mentioned person explained that because the surrender of the policy is not a full refund, the insurance company will deduct a certain fee based on the length of time the policyholder has been insured, but the gain outweighs the loss. Especially in the first or two years after purchasing the insurance, financial insurance surrenders The amount obtained is relatively small compared to the principal, and the principal cannot generally be returned.
Take a certain incremental whole life insurance as an example. Without triggering death or total disability insurance benefits, not only will there be zero income in the first five years after taking out the policy, but the principal will also be lost when the policy is surrendered. According to the policy benefit demonstration results:
’s cash value at the end of the first year after taking out the policy was 12,564 yuan, relative to the premium investment of 30,000 yuan, the surrender loss was as high as 58.12%;
’s cash value at the end of the second year after taking out the policy was 32,553 yuan, relative to 3*2 = 60,000 yuan premium investment, surrender loss 45.75%;
cash value at the end of the third year after insurance is 61,110 yuan, compared to 3*3 = 90,000 yuan premium investment, surrender loss 32.1%;
cash value at the end of the fourth year after insurance The value is 103,551 yuan. Compared with the premium investment of 3*4=120,000 yuan, the surrender loss is 13.71%;
until the end of the fifth year after the insurance is purchased, the cash value is 151,164 yuan, which exceeds the premium investment of 3*5=150,000 yuan.
It is understood that there are generally two situations for surrender of financial insurance, one is surrender during the hesitation period, and the other is surrender during the non-demur period. If you surrender the policy during the hesitation period, you will generally not lose much, and only the cost of production will be deducted. . If you surrender the policy during the non-hesitation period, it will depend on the cash value of the financial insurance purchased. Of course, this is stated in the insurance contract. In addition, if there is a fixed return or dividend, then it needs to be calculated again.
The above-mentioned insurance experts suggest that from an investment perspective, in accordance with the balanced allocation of stocks and bonds, in household asset allocation, some financial management insurance can be used as long-term fixed-income assets to provide for the next 20 or 30 years. The future cash flow of will be to meet the financial needs for studying abroad, pension and so on.
Reporters: Tu Yinghao Zhang Yi Li Yuwen
Editor: Liao Dan
Typesetting: Liao Dan Ma Yuan
Cover image source: Photo Network-501574045
Daily Economic News
