Increased Lifetime Life Insurance Behind the Fire

"China Economic Weekly" reporter Xie Wei 丨 Beijing report

Increased life danger.

"Lifetime guardians who will grow up", "the last capital", "tears of the times", "your financial real estate", "visualization of money deposit" ... Various titles.

Increasing life insurance has become the main product of many life insurance companies. The recent report released by the China Insurance Association shows that in the past two years, the increase of lifelong life insurance products has occupied the absolute mainstream of the banking insurance market. In 2021, life insurance accounted for seven seats in the top ten of the annual sales of products.

The fire of life insurance for life insurance is deeply appreciated.

"I have sold more than 2 million life insurance for more than 2 million this year." Wang Lu, an insurance broker of the Ming Asia Insurance Broker Company, bluntly said to the reporter of "China Economic Weekly" that now shows a winding direction of buying savings insurance, more or less Will buy some, unless you don't pay attention to financial investment at all.

"I am a small single, but there is an additional member who joined the job in June and has already opened a few 3 million yuan in a row." Wang Lu said, "If you have 3 million yuan in investment, buy a house or buy an increase for life for life. Life insurance? Ten years ago, I definitely support you to buy a house, but now the times are different. "

What is the increase of life insurance? Why do you attract insurance consumers and insurance companies?

However, such a fire product was strictly supervised by the China Banking Regulatory Commission in 2021, and even products were removed from the shelves. Is it really reliable?

Why is it fire?

——Buka wealth management substitution products

Lifetime life insurance products are life insurance with death as the insurance condition and the insurance period.

Increasing lifelong life insurance refers to a lifelong life insurance that increases the insurance amount as the year of insurance year, and the insurance amount is increasing according to the agreed ratio.

The so -called "increase" refers to the increase in the insured amount of their deaths year by year. Although the preliminary insurance amount is usually not high, its insured and cash value will continue to grow over time, and the cash value of the early stage will grow rapidly.

Although it is a insurance with death as the payment condition, most of the incremental life insurance can receive some cash value by reducing insurance to make it have the effect of "wealth management products".

The introduction of an increased life insurance product showed by Wang Lu to reporters show that if a 30 -year -old lady chooses this guarantee plan, the annual premium premiums are 200,000 yuan, the fee is paid for 5 years, and a total of 1 million yuan will be invested. Returned to 11.39 million yuan at one time. If it is not taken out, the effective insurance amount is maintained by 3.5%per year, and it is needed at any time.

She introduced to reporters that the core "Austrian" of the incremental life insurance can withdraw money halfway. Increased life insurance can be reduced at any time, without how much money is received, and it does not need to be collected in a fixed time. You can also obtain a large amount of cash flow through the "policy loan" to solve the problem of temporary capital turnover. "This is a capital reservoir with compound interest growth, forced savings in the early stage, and then loan."

Throughout the market, there are many incremental life insurance products on the market, the age of insurance and the threshold for investment is very low. Some products can be insured at the age of 75 at the age of 75. In terms of premiums, the annual premium threshold can be as low as 1,000 yuan. For insurance agents, long -term insurance sales rebate is very high, up to 20%to 40%.

It is this actual "financial management" effect that makes the increased life insurance stand out. It locks long -term income and determines the payment, which is undoubtedly attractive at the moment when "breaking the rigid" and the decline of interest rates.

"Obviously, it caters to the insurance demand for people's resistance to inflation, coupled with the strong sales of insurance companies, so it will be fire." Wang Guojun, assistant to the dean of the Insurance College of the University of Foreign Economics and Trade.

So, is the incremental life insurance worth buying?

"All insurance has a strong individual targeted, and it is not worth seeing the individual situation of the insured." Wang Guojun analyzed to the reporter of "China Economic Weekly" that all the insured will eventually died, and each insurer (actually actually the insurer (actually The beneficiary) will receive death insurance premiums, the difference is only sooner or later to obtain the insurance time. Therefore, the mutual benefit of lifelong life insurance is relatively poor, while the savings are relatively strong, so the rate is higher. Whether or not it depends on the product's predetermined interest rate and the insured person's own return on capital market investment. If it is a product of investment connectivity, dividends, and universal, the settlement interest rate must be added. If the insurance return on the capital market is higher than the sum of the predetermined interest rate and settlement interest rate, it is not cost -effective to him; otherwise it is cost -effective.

What are the risks hidden behind the "financial management"?

In fact, the "ethics" of life insurance for life insurance stems from the "ebb" of annuity insurance to a certain extent.

In 2013, the increase of life insurance for the first time in the Chinese market test water. In 2017, small and medium -sized insurance companies successively launched the increase of life insurance, but they have always lost to the year's gold products.

The turning point occurred in 2019. At that time, the China Banking Regulatory Commission issued the "Notice on improving the interest rate formation mechanism of the personal insurance industry liability reserves and the adjustment of responsibility reserve assessment interest rate -related matters" (that is, "Circular 182"). Fulfu 4.025%was reduced to 3.5%of the annual compound interest.

In 2020, annuity insurance with a predetermined interest rate of 4.025%successively retired. In comparison, the increased value of the increase in the increase of life insurance is faster and the "flexible insurance reduction" has begun to emerge. At the same time, as the new rules of asset management broke the rigid exchange, bank wealth management products gradually transformed into net worth, and the yield rate went down all the way. As of the end of 2021, the rectification of the wealth management stock has been completed, and the capital preservation wealth management has zero.

Against such a background, consumers and insurance companies are rushing to increase lifetime life insurance. In 2021, large insurance companies have also launched increasing life insurance products, which are increasingly fierce.

At present, among the listed insurance companies, the National Shoushou Insurance, Ping An Life, and Xinhua Insurance have all launched increasing life insurance products.

An insider of a life insurance company said that the first time this year has launched the increase of life insurance in individual insurance channels. At present, it is very good to sell and is also more attractive to customers, especially for customers with long -term savings.

The "2021 Bank Agency Channel Business Development Report" released by the China Insurance Association shows that in 2021, the capital flexibility of the increase in life insurance products has high funds. Various functions make it stand out in the competition and occupy the absolute mainstream position of the banking security market. Lifetime life insurance accounts for seven seats in the top ten annual sales of products.

However, there are also hidden risks behind "financial management". Some incremental life insurance products use insurance reduction methods to achieve "short -term insurance", making long -term products into short -term savings, which can easily cause cash flow risks of insurance companies. Once the income of funds declines, new risk of interest and loss may cause the risk of surrender.

This is not consistent with the concept of regulatory guidance to the development of long -term products.

Therefore, the supervision of the China Insurance Regulatory Commission for increasing life insurance products is also increasing.

As early as December 31, 2020, the China Banking Regulatory Commission proposed in the "Notice on Recent Personal Insurance Products and Regulatory Report Report Reports", and some companies' lifelong life insurance products have the problem of "long insurance short -term".

The report said: "For example, Fosun Paudexin, Tongfang Global Life and Huatai Life reported a lifelong life insurance, the products can be flexibly reduced, and there is no proportional restrictions. There is a long -term insurance risk. The surrender rate of the first five years of the product is too high, and there is a short risk of long insurance. "

At the end of June 2021, the Insurance Department of the CBRC issued relevant notifications again, named the incremental life insurance products sold by Beijing Life Insurance Tianjin Branch, with low degree of protection, short -term insurance, and financial management in disguise.

On January 27 this year, the personal insurance department of the Banking Insurance Regulatory Commission issued the "Notice on Recent Personal Insurance Products" and stated that some increased life insurance products were found during product verification. For example, Haibao Life Insurance, He Tai Life, Hengqin Life, Luxury Life, Xinmei Life, and Well -off Life Insurance reported the increase in interest rates of more than 3.5%of the increase in life insurance. Essence

In February, the "negative list" (2022 edition) of the personal insurance department of the Banking Insurance Regulatory Commission was officially announced. Compared with the previously added 9 "negative lists" compared with the previously added, including the "increase in the increase in the amount of life insurance increased life insurance Exceeding the pricing interest rate, there are serious misleading hidden dangers; the design of the insurance reduction ratio of life insurance is unreasonable;

Since then, a number of "net celebrities" increased life insurance products, and many insurance companies have also designed and adjusted illegal products.

"Some companies' incremental life insurance names are not realistic. Hanging sheep's head sells dog meat, and the annuity insurance is based on the name of lifelong life insurance. Naturally, it should be removed. "Wang Guojun bluntly.

Will it be plain after the short -term popularity?

Affected by the epidemic, residents' consumption tends to be cautious, savings preferences, and insurance products such as critical illness insurance have weakened the short -term demand for optional consumer goods, and the demand for savings products represented by increased life insurance is relatively improved. Insurance companies have also generally increased long -term savings products represented by incremental lifelong products, making their scale grow.

However, the incremental life insurance has a rigid attribute, the guarantee period is long, and whether the yield of about 3.5%can continue in the downturn of interest rates and whether it will cause the crisis of interest in insurance companies. Thinking.

"Now many products in insurance companies actually compete with bank products, and they are also talking about yields. Of course, it is not impossible to talk about yields, but what is more important in insurance companies is not providing category savings products. This is not the industry value and society of the insurance industry. Value is located. "There are also senior insurance companies bluntly said to reporters," The value of the insurance industry is to provide risk guarantee and cannot grab the rice bowl with others. "

In the view of Wang Guojun, although the short -term explosion, in the long run, the increase of life insurance products will eventually return to insurance to ensure the origin and tend to be bland.

Liu Xinqi, the chief analyst of Cathay Junan Non -Silver Financial Industry, also believes that it is expected that the increase of life insurance will become a phased explosion product. Under the risk of long -term spreads, insurance companies will reduce the expected return of expected returns.

"We believe that under the current background of the downward interest rate, the increase of life insurance as a height scarce product with a guarantee income and long -term revenue can reach more than 3%. It is expected to be sought after by the market in the short term." Liu Xinqi said.

Liu Xinqi also emphasized that for insurance companies, the increase of lifelong life insurance is facing a greater risk of interest differences. It is expected that long -term insurance companies will consider reducing the predetermined interest rate or reduction of insurance reduction equity.At the same time, the China Banking Regulatory Commission is also strengthening the supervision of incremental lifelong life insurance products, focusing on standardized insurance companies, and avoiding potential risks such as misleading sales, short -term insurance, and lohoma loss."(The request of the interview, Wang Lu is a pseudonym)

(This article published in "China Economic Weekly" 2022, No. 16)

The cover of the 16th issue of 2022 "China Economic Weekly"

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