Posted by on"Savings dividend insurance and index insurance"Which is good for this question,American Life Insurance GuideThis has been discussed for a long time within the net community.Finally, we conducted the following descriptions and evaluations:
From the perspective of historical development and market share
Savings and Dividend Insurance(whole life ) Appeared longer and occupied the market longer-nearly 80 years of history-and brought a higher market share: 36%, a well-deserved old predecessor.
Index insurance( IUL ) Appeared in a short period of time-since it was born in the United States in 1997, it has a history of nearly 20 years.In less than 1/4 of the historical life of the former, index insurance has occupied 23% of the market and is a high-profile rising star.
Compare the core features of insurance products:
Index Insurance IULThe core competitiveness of the company is to provide a stronger cash value growth while providing a floor (Floor)"ability".Choosing index insurance is based on trust-based ability expectations brought about by past historical market performance.
Savings Participating InsuranceThe core competitiveness of the company is to guarantee a given cash value and death compensation.The guaranteed part does not fluctuate with the market.
Comparison of policy product evaluation
This article choseAmerican Life Insurance GuideThe selected products of first-class savings insurance companies and first-class index insurance products will be evaluated on the trump card to help the insured understand the characteristics of this "guarantee" and "capability".
client status:Elizabeth, female, 32 years old.She intends to deposit money into the policy account for 10 consecutive years from now, depositing approximately $5 per year.From the age of 60 to 80, the policy account provides stable retirement income in US dollars.How about the specific performance of different types of insurance?How much retirement income can be raised each year?We will start the evaluation next.
How to choose
in"Misunderstandings of American Life Insurance Insurance (XNUMX)According to the American Life Insurance Guide, each insurance company has different areas of expertise. Even the same insurance company has different usage scenarios for its products. Therefore, professional product selection and rigorous and restrained program design, In order to truly realize our needs*.
After the communication between the evaluation editor and the insurance company’s agent broker, combined with the actual needs of the insured in the case, we have selected two American insurance products that pay special attention to the growth of cash value, representingSavings and Dividend Insurance-Whole Life, andIndex insurance——Indexed Universal Life, a comparison PK.
Savings dividend insurance program evaluation part
The picture above isAmerican Life Insurance GuideThe selected one with a dividend rate of 2019%* in 6.4Savings dividend typeProduct, usePaid-Up AdditionsBonus program.
"0% Guaranteed Part"This column reflects thisSavings Participating InsuranceThe core competitiveness:"Guarantee" section.This part means that as long as Elizabeth"Guarantee"Deposit every year"Guarantee"The amount of premium: $53,920,"Guarantee"Uninterrupted storage for 10 years.So no matter whether the external stock market is up or down, her policy account was at the age of 60"Guarantee"There will be a balance of $84.If she passes away in a personal accident at the age of 60, the insurance company"Guarantee"Will compensate $200 million. Elizabeth was between 60 and 80 years old,"Guarantee"If you don’t withdraw money, at the age of 90, if a personal accident occurs, the insurance company"Guarantee"Will compensate $200 million.
The "6.4% Dividend Part" column is a"Not guaranteed expectations for the future."It stated that on the basis of the "guaranteed part",如果according toInsurance company's ledger.Per yearGive the policyholder a 6.4% dividend, so in thisHypothetical situationFrom the age of 60 to the age of 80, Elizabeth can withdraw $10.7 from the policy as retirement income every year. At the age of 90, if a death occurs in a personal accident, the death benefit is $151 million.
The key point of the evaluation: "guarantee"The second word is frequently used in savings and dividend insurance policies. It is not the responsibility of the insurance company and requires the participation of policyholders.Dividend rate is savingsDividendsThe uncertain factors of the insurance policy-whether to pay dividends every year, how much the dividends are paid, whether it is 0%, or 6.4%, or other values, is determined by the insurance company itself.
Index insurance program evaluation section
The picture above isAmerican Life Insurance GuideThe selected one focuses on cash value growthIndex insuranceProducts, and use different market interest rate schemes for comparison.
"6.40%"This column refers to the expected future market average annual return rate of 6.40%."Performance Capability of Index Policy".In this kind ofHypothetical situationNext, when Elizabeth was about to retire at the age of 60, the policy account had a claim of $179 million.From 60 to 80 years old, she can withdraw from the policy every year$14.5As retirement income, at the age of 90, if a personal accident occurs, the death compensation amount is $234 million.
And"5%"This column means that if the average rate of return in the future market is expected to be 5%, then in thisHypothetical situationFrom the age of 60 to the age of 80, Elizabeth can withdraw $9.2 from the policy as retirement income every year. At the age of 90, if a death occurs in a personal accident, the death benefit is $96 million.
In addition, we also calculated the 4% situation.American Life Insurance GuideDo not use more than 7% demo interest rate.
Key points of evaluation:The expected annual rate of return is the core of an index-type insurance policy, and it is also a factor that cannot be determined at present-4%, 5%, 6.4%, or even 10%. This value is determined by the public trend of the actual market in the future.
Article summary
From the above comparison, we can see that whether it isSavings Participating Insurance,still isIndex insurance.The final actual retirement income and death compensation of the insured are largely determined by a performance factor that has not occurred in the future.
So, back to the answerSavings Participating Insurance和Index insuranceWhich is better this question comes up.
insurGuru©️Insurance AcademyIt is believed that under an uncertain reference factor, the two are not comparable at all.The relationship between the two is like an apple and a banana.Some people like apples, some people like bananas, and both have their own audiences.For different policyholders, at different life stages, different financial conditions, and different risk tolerance, we will have different ideas and choices.
Through the comparative evaluation of this article,American Life Insurance GuideI hope that the policyholders will understand: whether it is apples or bananas, we need to manage reasonable expectations according to our actual needs, and with the help of professional planners, we need to choose the right products.Resolutely avoid "problem" products on the important life decision of retirement planning, To find products and solutions that can really better fulfill our needs.
American Life Insurance GuideThe purpose of the establishment: "To help Chinese people fully understand the knowledge of life insurance in the United States, so as to obtain the insurance that can truly protect themselves and their loved ones." (End of the full text)
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Disclaimer:
*In order to comply with the laws and regulations of the financial and insurance industry in the United States and the compliance of the insurance industry, after consulting lawyers, we cannot mention the specific insurance company name and the specific product name in the public review article.If you don’t understand this, you can contact us to ask the reason.
*The figures and amounts shown in the article are only for the purpose of education and information sharing and communication, not the actual contract content of the insurance policy, and do not have any legal effect.The actual situation is subject to the contents of the English policy.
*Dividend Interest Rate (DIR)NotThe rate of return on the policy, the rate of return on the policy, or the rate of return on the cash value of the policy.It is determined by the insurance company unilaterally according to the year according to the financial situation of the financial insurance company.The dividend yield can be changed, and there is no guarantee whether there will be a dividend or how much the dividend will be.
