Posted by When comparing the policy account products of different asset-management insurance companies, customers usually discuss with insurance consultants in the American Life Insurance Guide community,"This product doesn't seem to be very competitive." "The insurance company's return on investment doesn't seem to be high."Wait for questions.So it came out naturally,What exactly is the “competitiveness” of U.S. insurance’s asset management? What media do we rely on to introduce the value of "return rate" into our minds?Is this value representing "competitiveness" reliable?What exactly should we focus on?
How does the policy’s asset management “competitiveness” come about?
Insurance companies usually use the accumulated premium pool of policyholders to make profits. We use the chart to illustrate the principle of profit.Rejected insurance, increased premiums and suspended sales, the insurance window for the new crown epidemic in the United States is closing” is described in detail in the article.
(Since 1980, interest rates have been falling for 40 consecutive years)
Due to long-term low interest rates, traditional insurance product types and previous businesses can no longer help insurance companies make money. The American Life Insurance Guide has also reported on several insurance companies in the past two years.Insurance company exitOrResellNews about the personal life insurance business.
Under such circumstances, some insurance companies began to gradually move toward "asset Management"The direction of this concept has changed.Later, investment type,Index insuranceProducts began to emerge in the market after 2000, and rose rapidly in just 20 years, gradually occupying the mainstream market for personal life insurance in the United States.
Until now, "Insurance financing"The concept of "buying insurance" has become popular, and "buying insurance", just like buying stocks and funds, has become a part of the daily financial management life of many of us.
More like "Passive Management" attributeIndex productsCompounding the traditional advantages of "insurance" provides a powerful risk management tool and cornerstone for the accumulation of family wealth.Therefore, index products have higher returns than “Active Management” policy products.market share.
What is the ideal "competitiveness"?
以First appearedOfIndex insuranceTake the product as an example,Regardless of brand premium,如果The cost of the policy, against the underlying market indexAllExactly the sameIdeal situation, Then, who gave itRevenue CapThe higher the value, the more generous the insurance company is in distributing dividends and transferring profits to policyholders.
This situation often also means that the corresponding insurance productThe numerical value on the plan is more beautiful——It shows that under the same market trend in the future, this insurance company will get more cash value benefits than other insurance products.therefore,The stronger the competitiveness in the moment.
(Example: Demonstration of the "Proposal Proposal Form" of an insurance company with a high cap. This picture does not constitute an insurance recommendation, nor is it a guaranteed result)
Although this is the truth, in the real world,There is no such simple judgment criterion and ideal contrast environment.This is because every excellent insurance company has a different professional market area, and there are so many differences in policy costing and welfare protection, there is no standard that can be used to make a completely fair comparison.
In addition, index insurance products have been upgraded from the earliest generation products to the second generation products with the competition and development of the market. The two coexist in the market, and there are obvious product differences.The more beautiful numerical values in the latter plan can be obtained by a completely different calculation method, which directly bypasses the "Cap revenue Cap"Determinism."
What is "competitiveness" not?
However, many marketing and gimmicks have drawn our attention to the "value" in policy design.However, "numbers" are never neutral.Insurance companies know this better and have put a lot of effort into the calculation system used for presentation.
Back 5 years ago, the China Insurance Regulatory Commission’s AG49 regulations had not been formally introduced-taking a V insurance company, a popular Chinese wealth management market at the time, as an example, the planning plan of its insurance policy account, or the figures on the product plan, can be done Let the younger generations stunned.
If you just look at the numbers, this is definitely a "competitive" product.
But many years later, the first people to feel the unspeakable pain were not customers or policyholders, but some practitioners who also believed that this was a "competitive" product and signed on.
After the executives of the original insurance group were fired, they turned around and entered another financial group, re-established the life insurance business, and bought "company history" through acquisitions.Reappeared with a new name and really beautiful numerical plan display table——Think more deeply, will this kind of operation of large capital market bring about the same market reincarnation again?As industry observers, we have always been skeptical of this type of insurance company.
Finally, from a professional point of view,The policy plan has always been just a reference.From the moment the policy is signed into effect, no policy account will automatically operate in exactly the way expected by the plan.如果onlyIt may be questionable to judge whether a product is "competitive" and make financial decisions based on a reference value on a reference template that has no legal effect.
(>>>Recommended reading:Professional Post｜What is the American Life Insurance Recommendation (Illustration)?What are the controversies and highlights? )
This is why we emphasize,After the policy takes effect, the management of this type of policy account for up to 10 years, 20 years,Does the insurance company provide more management tools and options for cash withdrawal,The specificity of the overall business of the insurance company and the nature of the management team,Perhaps it is more important than paying attention to the numerical display of the policy plan design. This is the basis for truly reflecting "whether the long-term average return rate of the policy is high."
In the next column, we will continue to share several important rules for applying for a savings participating insurance account & IUL index insurance policy account in 2020.
1. How to judge whether this insurance company is reliable or not?
2. Why do you choose insurance consultants and brokers instead of insurance companies?
3. Be clear about what you want, or what you don't want.
4. How can I take money out of the insurance policy?What are the options and the corresponding costs?
(>>>Recommended reading:2018 golden rules for buying IUL index insurance in 4 )
