If you buy annuity insurance in order to get higher profits, I advise you to stop buying it as soon as possible.

As the state stipulates the predetermined interest rate of annuity insurance, which does not exceed 4.025, this type of product can be used for financial management, and there is little difference from depositing money in a bank.

It is even said that the yield rate of some products is much worse than the bank's regular interest rate.

How does China Life Hongfu Supreme Annuity Insurance (dividend type) do in terms of yield? Is it high or low? Let's find out.

1. Analysis of the protection content of Hongfu Supreme

The protection content of Hongfu Supreme is really easy to understand. It contains two parts: income and death protection. The income is divided into annuity and survival benefit. and maturity gold. For details, let’s look at the picture below:

Let’s first take a look at the protection content of Hongfu Supreme to see where it falls short and what it does better.

Advantages:

1. Flexible payment period

Hongfu Supreme has three payment methods, one is to be paid in 3 years, and the other two are to be paid in 5 years. Paying in 10 years, we can choose the method that suits our situation based on our actual income and future plans.

Generally speaking, the longer the payment period, the better, because the longer the payment period, the annual premium paid will be smaller, and maybe we will not be so heartbroken.

However, both early and late payments are required, and the money we invest in annuity insurance is temporarily stored and useless, so how to pay it depends on personal choice.

2. Support annuity conversion

The so-called annuity conversion means that the policyholder’s contract must be approved by the insurer before it can take effect, thereby converting the insurance money received into another Annuity insurance.

If you want to get more profits and protection after the Hongfu Supreme policy expires, you can request to change the insurance money to other products, eliminating the need for insurance, review and other processes, which is extremely convenient.

Disadvantages:

The death protection is not strong

The death protection of Hongfu Supreme only refunds the premium paid. For the same type of product, Most of them have additional compensation or the larger of (premium, insured amount and cash value).

For the breadwinner of the family, once the breadwinner dies, the family’s daily expenses, children’s education expenses, mortgage, etc. may be lost.

Hongfu Supreme is not as good as other products in terms of death protection.

But as I said before, when buying annuity insurance, we need to pay more attention to its rate of return. Therefore, the advantages and disadvantages of Hongfu Supreme are not important. What is important is the actual rate of return.

2. Hongfu Supreme rate of return exposed!

Using the example of a 30-year-old male with an annual premium of RMB 100,000 for 10 years (the basic insured amount is RMB 24,820), we will calculate the IRR. The specific results are as follows:

Finally, the IRR of Hongfu Supreme is only 2, which is 0.75 lower than the bank’s regular interest rate (2.75). Even if Hongfu Supreme grows with compound interest, it’s still too different.

Like some high-yield annuity insurance, the IRR can reach 3 or even 4. Hongfu Supreme is not even a little worse:

Want to buy a high-yield annuity insurance? Don’t miss these 10 styles! 》

At this time, some friends were wondering: "Did you miss something in your calculation? Is the dividend of Hongfu Supreme limited to this amount? At the same time, it also covers universal accounts!"

The senior sister will explain it carefully~

1. The trick of dividends

The so-called dividends mean: the insurance company will use the profits from the company’s disposable surplus every year. The method extracts a portion and distributes it to policyholders.

The dividend distribution of participating insurance mainly comes from three aspects: dead spread, interest spread and fee difference.

That is to say, of course the dividend income of participating insurance matches the actual operating volume of the insurance company and is not capped, but there may be no dividends.

In addition, the dividends and profits of insurance companies are not transparent. How much benefits are received from the goods, how to distribute the dividends, and how much dividends each person can get are all decided by the insurance company itself. From this point of view, Regarding the issue of dividend distribution, insurance companies still play many roles, including athletes and referees.

Why is the complaint rate of participating insurance so high? 》

2. Universal account

The universal account can be understood as: the survival benefit (annuity) returned to you by the insurance company. If you are not in a hurry to receive it, you can put this fund into Universal account to realize its value-added.

Universal accounts generally have three interest rates, namely guaranteed interest rate, mid-range interest rate and high-end interest rate. For an insurance company, in addition to what the senior mentioned above, there is also the company's actual settlement interest rate.

In fact, when all universal accounts and new products are sold, the settlement interest rate is very high! The difference is about 5. The settlement interest rate will not remain unchanged all the time. It will slowly decrease with the movement of time, but it will eventually reach a certain range of 3-4.

In order to help you avoid the pitfalls of annuity insurance, the senior sister shared with you the guide she summarized:

"Learn this technique to perfectly avoid the 99 pitfalls of annuity insurance"

Write it at the end

I am a top student talking about insurance, focusing on objective, professional and neutral insurance evaluation;

If the above content has not solved your problem If you have any questions, you can also consult me ??on the official account Xueba Talk Insurance;

I will give you the most professional advice based on my years of experience in configuring insurance for 10W families.

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