Chao News client reporter Xu Yiwen.
Pay 20,000 yuan a year, pay for a total of 5 years, and the predetermined interest rate is 30%, which is higher than bank savings. Hu Xiaowan, 32, who works for a large Internet company in Hangzhou, received a year-end bonus to buy a full-fledged whole life insurance product for herself.
Aunt Li, 61 years old, bought an increased whole life insurance in the bank two years ago, purchased 100,000 yuan at one time, and saved it for 3 years. In January this year, she took 30,000 yuan to add an additional policy to the bank.
At a time when interest rates are falling, young white-collar workers and retirees alike are thinking about the same thing: how to preserve the value of money? The Chao News reporter noticed that whether it is an insurance person in the circle of friends or a bank clerk, they have been actively promoting a product recently-increasing whole life.
As a savings insurance product, many investors believe that it can lock in interest rates, provide stable income, and do not require cumbersome investment procedures, which is suitable for forced savings. But is incremental whole life insurance really an ideal financial tool? What are its advantages and disadvantages? Who is it suitable for?
The increase in the amount of whole life promoted by the insurance ** person in the circle of friends.
* Loss of more than 50% in two years
A 32-year-old turned to conservative investing.
Hu Xiaowan stumbled out of ** before he decided to force himself to save. Starting from 2021, she has invested 200,000 yuan one after another, buying ** in new energy, medical care, liquor and other industries, and in two years, she has lost more than 50%.
After reluctantly clearing the warehouse, she deposited the remaining money into Yue Bao, which passed for more than a month. A few years ago, the company issued a year-end bonus, and after comparing multiple channels, she finally chose a bank's increased whole life insurance, "The downward trend of interest rates, I saved this money mainly to lock in the interest rate and obtain a safe return." ”
Recently, the increase in whole life has been the hottest, if you have some spare money, we recommend buying this product. When the reporter consulted a bank manager about savings insurance, the other party said that the biggest benefit of this product is that the income is fixed, "the insured amount is 30% annual compound interest, its earnings are written into the contract, can lock in the yield for the next few decades, not affected by market fluctuations. ”
A bank's increased whole life insurance has recently become popular again. Photo by Chao News reporter Xu Yiwen.
Since September 2022, the listed interest rate of bank deposits, which has been "silent" for nearly 7 years, has begun to "fall endlessly". The interest rate on fixed deposits of some maturities fell by 50bp (basis points), and in the past 2023, major state-owned banks have made three rounds of interest rate cuts. For ordinary people, it is becoming more and more difficult to preserve and increase the value of wealth, and more and more people are turning their attention to increasing the amount of whole life insurance.
The reporter noticed that there are two main types of savings insurance on the market: annuity and increased whole life. "Compared with other savings insurance products, the product of increasing whole life is simpler and more flexible. In addition to having a certain percentage of the leverage on the value of death, customers value the cash value, that is, the earnings. Customers can choose one-time payment, installment payment and other methods according to their own economic situation, as long as the closed period is over, the income exceeds the principal, and the income can be realized, and the interest rate can be locked. Du Feng, an insurance broker who has been practicing for more than 10 years, told reporters.
There is a lot of controversy between the channel side and the consumer side.
Insiders: Suitable for people with long-term savings planning
Locking in income and compound interest for life, although increasing the amount of whole life has these advantages, its reputation on major social platforms is not satisfactory. The reporter entered the keywords "increase the amount of life expectancy" on a social platform, and the homepage displayed "persuade to retire, increase the amount of life**", "step on the pit lesson, follow the trend to buy the increase of life and suffer a big loss", "I was miserable by the increase of life" and so on.
Why is it so controversial to be regarded as a financial tool for capital preservation and appreciation on the channel side?
The more experienced people in the investment field, the more risk-averse they are. Each financial product has different characteristics, and the core of Enhanced Whole Life is cash value, which is the money you can get back when you surrender the policy. However, the increase generally requires a 5-10 year recovery period, which is the closed period in the industry, and if the policy is surrendered in a short period of time, it will cause great losses. Du Feng told reporters that the longer the increase in whole life, the more cash value.
The insurance ** person introduced the increased amount of whole life insurance to reporters, and the longer it is held, the more cash value it has.
It is reported that the increase in whole life is suitable for individuals or families with medium and long-term savings and inheritance planning, "For example, if you want to make pension plans for yourself in advance and education plans for your children, the increase in whole life can provide good financial protection." Du Feng said, but for people who will have large expenditures in the short term, pursue short-term ultra-high returns, and do not do a good job in basic protection, it is not recommended to choose to buy such products.
Most of the consumers who feel cheated do not fully understand the product features before taking out insurance, or the salesperson is not clear about the customer's financial situation and planning, and recommends inappropriate products. The bank account manager said the same.
Du Feng has repeatedly emphasized that consumers should fully understand the product before making a choice. Before considering buying an incremental whole life product, we need to make sure that: first, there is sufficient protection insurance, such as accident insurance, medical insurance, life insurance and critical illness insurance; The second is to pursue stable income and have a long-term fund on hand. "Increasing Whole Life is just one of the financial tools, and it is recommended that customers plan for each stage of life with a variety of product combinations. ”
*Please indicate the source".