What does endowment insurance cover? You need to know this.

With the aging of modern society becoming more and more serious, providing for the aged has gradually become an unavoidable topic. More and more people begin to allocate endowment insurance for themselves or their parents, and now there are a variety of endowment insurance products on the market. Let's talk about endowment insurance today.

What is endowment insurance? Protect what? Is it worth buying?

Endowment insurance is divided into social endowment insurance and commercial endowment insurance.

In fact, the country has provided a basic old-age security for most people through social security in the field of old-age insurance, but it is far from enough to rely solely on social security to support the elderly.

Therefore, commercial endowment insurance is still worth buying when economic conditions permit. Social security can only provide a basic guarantee for the life of the elderly, while commercial endowment insurance can be insured by users according to their own economic conditions. Commercial old-age insurance can be used as a supplement to social security and have a more quality old-age life.

What is the difference between social security endowment insurance and commercial endowment insurance?

Variance 1: the payment duration is different.

The payment period of social security pension is required to be at least 15 years (except in special circumstances), and it is best not to interrupt (local policies are different). The payment period of commercial maintenance is particularly flexible, and it can be paid in one lump sum or in three years, five years, 10 years and 20 years. You can choose according to your actual situation.

Difference 2: The departure time is different.

The starting time of social security pension is from the date of retirement, so delaying retirement is a very unfavorable policy for pension income. If retirement is delayed 1 year, it is equivalent to paying old-age insurance 1 year and receiving pension 1 year.

It is more flexible to collect old products. Different products have different collection times, and even the same product can be set with different collection times, which can be selected according to its own actual situation.

Difference 3: the payment ratio is different.

A small part of social security pension is paid by individuals, and most of it is paid by units. It seems that individuals take advantage; But also, when the pension is finally paid, the calculation base is even.

Business maintenance is always paid by individuals and enjoyed by individuals.

Difference 4: and most importantly, the yield algorithm is different.

The yield of social security pension varies greatly and is divided into several situations.

1. If he dies before retirement, he will receive the part paid by the individual in the account. In this case, the rate of return can be similar to that of the social security fund or negative.

2. He died shortly after retirement, and the personal account received funeral expenses+money, which was slightly higher than the first case.

The longer you live, the higher your income.

The yield of commercial endowment insurance is very stable. Because of the existence of cash value, it can be recovered after a certain year, and the rate of return is stable whenever it dies thereafter.

Generally speaking, the premium and cash value paid for death are greater, so commercial endowment insurance can pay interest for a few years at most.

After observing these differences, one of the simplest conclusions can be drawn:

If you can live a long life, social security pension insurance has higher income than commercial pension insurance; If not, commercial endowment insurance guarantees a stable income.

The final conclusion is that commercial pension insurance is a very effective supplement to social security pension, and the combination of the two is more reliable.

What kinds of commercial endowment insurance are there? How to choose?

1, traditional endowment insurance

The predetermined interest rate of this kind of insurance is between 2% and 2.4%, and its target and the amount to be collected in the later period can be clearly selected and predicted before insurance. Therefore, the return of this kind of insurance is fixed, which is both its advantages and disadvantages, because it is difficult to resist the influence of inflation and ensure the possibility of depreciation over time.

Therefore, this kind of insurance is more suitable for the conservative and the elderly.

2. Dividend endowment insurance

The interest rate of this kind of insurance will be slightly lower than that of traditional endowment insurance, which is about 1.5%-2%. However, in addition to the guaranteed predetermined interest rate, it also has uncertain dividends, so more people buy it. Theoretically, it can avoid the impact of inflation, but at the same time, dividends are uncertain and may suffer losses.

Therefore, this kind of insurance is more suitable for investors who are unwilling to take risks or have weak tolerance.

3. National endowment insurance

The interest rate of this type of insurance is between 1.75%-2.5%, and there are uncertain additional benefits. Its better point is that there is no upper limit and a guaranteed interest rate, which can resist the impact of bank interest rate fluctuations and inflation and is very flexible. But at the same time, flexible access is also a disadvantage, which is not conducive to people with savings habits to invest.

Therefore, it is more suitable for people who can persist in investing for a long time and have strong self-control.

4. Investment-linked insurance

There is no guaranteed return, and different investment returns are linked by multiple accounts with different risk types. At the same time, the profit is large and the risk is considerable, and the customer is responsible for the profit and loss. If we insist on long-term investment, the income may be high, but at the same time, the short-term fluctuations are too large and often adjusted, and the losses are also great.

Therefore, it is more suitable for people with certain economic ability, strong risk tolerance and long-term investment.

To sum up, commercial endowment insurance can provide us with a better quality of life while providing protection for our later life. So act as soon as possible. If you are still confused about how to choose the endowment insurance that suits you, you can search Baidu for "Baibaojun". There is a professional insurance consultant team here to tailor your exclusive insurance products for you!