Incremental life insurance how Who is suitable to buy additional life insurance
Life insurance is a kind of life insurance that takes the death or total disability of the insured as the condition for payment of insurance benefits. The insurance liability is paid to the designated (or legal) beneficiary from the effective date of the insurance contract until the death of the insured. The increased amount of life insurance is increasing continuously, for example, 3% of the basic insurance amount is increasing year by year, or even 3% of the insurance amount of the previous year. That is to say, the higher the insurance amount paid in case of an accident in the future, the higher the insurance amount. It has the dual function of death protection+increment. The longer the time is, the more obvious the advantages are. It is more suitable for long-term planning security.
As a safe and stable risk transfer tool with a long holding period, incremental life insurance plays an important role in the value protection, asset preservation, wealth inheritance, risk isolation and other aspects of high net worth people, and has been regarded by many visionary high net worth families as one of the more reliable means of financial protection and inheritance.
More than 40 years of reform and opening up have brought opportunities to Chinese society. With the development of society, a large number of wealthy high net worth families and high net worth people have grown up. High net worth individuals usually refer to individuals with investable assets of more than 10 million yuan (individuals with investable assets of more than 100 million yuan are called ultra-high net worth individuals).
On November 12, Hurun Research Institute released the "Heirs of CITIC Prudential Life] · Hurun Baifu 2023 China High Net Worth Family Cash Flow Management Report", which showed that there were 5.18 million "wealthy families" with 6 million yuan of family net assets, 2.11 million "high net worth families" with 10 million yuan of family net assets, and 138000 "ultra-high net worth families" with 100 million yuan of family net assets.
The gathering of a large amount of wealth also means the gathering of a large number of risks. How to maintain and increase the value of assets, how to isolate the wealth risks in enterprise operation, how to carry out reasonable wealth inheritance, and how to plan the division of risks in marriage have gradually become important demands in the asset allocation of high net worth people.
Incremental life insurance takes the life of the insured as the insurance object. It is one of the few financial assets that can show love for family among many financial products. Its advantages are mainly reflected in the following aspects:
1. The policy is full of flexibility
High flexibility is also a highlight of increased life insurance. Generally, the insurance policy cannot reduce the insured amount partially. Only when the insurance policy is withdrawn can the cash value be obtained, but at the same time, the entire contract is also terminated. The increased lifetime life insurance can reduce the cash value of the insured amount according to the user's needs, and the cash value can be used as education funds, pensions or other arrangements. At the same time, with the rapid growth of the cash value, the flexible cash withdrawal can obtain a cash flow, and the funds that can be flexibly used will also be more and more.
2. Wealth security
As we all know, insurance companies are under the supervision of the CBRC, and the supervision is relatively strict. Insurance contracts are all valid contract texts approved by the CBRC. The starting point is to ensure the safety of funds and the insurance policy (asset) rights and interests of the policyholders, so there is no doubt about the safety. For the increased life insurance, as an insurance, it can provide sufficient protection and support; At the same time, it will give you the maximum return on your initial commitment.
3. Revenue determination and safe inheritance
The increased lifetime life utilizes the long axis of time to realize long-term guaranteed benefits. The policyholder has absolute control over the cash value of the policy, and the policyholder can designate beneficiaries to achieve wealth designated beneficiaries, directional inheritance and safe inheritance. As an asset isolation and asset inheritance tool, it is very good. From the most basic wealth security to value security, as well as later pension and inheritance, can be properly arranged. Therefore, the charm of incremental life insurance is to lock in the income, and because of its closed structure, it is protected by laws and regulations.
In a word, some of the wealth risk protection objectives of high net worth individuals are highly matched with the functions provided by increased life insurance. With the further improvement of the insurance awareness of the society and the further development of the wealth management market, increased life insurance is expected to become a conventional means of asset planning for high net worth individuals.
Taking the first newly launched dividend based incremental life insurance of Zhonghong Insurance, "Zhonghong Hongyun Companion Life Insurance (dividend based)" (hereinafter referred to as "Hongyun Companion"), as an example, while providing death protection for the insured, this product also has the characteristics of life value protection increasing year by year and the amount of life guaranteed. From the second policy year, the guarantee amount of that year will be increased by 2.5% of the basic insurance amount every year with compound interest, and will not be affected by market fluctuations. The guarantee amount is determined to increase until life. In case of misfortune of the insured, "Hongyun Companion" will pay the death insurance benefits according to the contract, and at the same time, through the designated beneficiary's inheritance method, avoid distribution disputes, so that wealth can be accurately inherited. In addition, qualified customers can also enjoy preferential policy loans to ease the pressure on capital liquidity. "Hongyun Companion" only has three exemptions, less restrictions and guarantees, which can well protect the wealth security of high net worth people and resist unknown risks.
Note:
"Hongyun Companion" is a dividend based insurance product. Policyholders can enjoy the surplus distribution right of the product in the form of policy dividends. The future policy dividends are non guaranteed benefits, and their dividend distribution is uncertain, and in some years the dividend may be zero. The dividend distribution method is incremental dividend.
The content of this web page is only for reference. The specific insurance liability, liability exemption, surrender fee and other details are subject to the terms of the insurance contract.
Insurance companies shall not sell non insurance financial products in violation of regulations and shall not participate in illegal fund-raising.
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