Universal life insurance refers to life insurance products that include insurance protection functions and have at least a certain asset value in one investment account. In addition to providing life protection like traditional life insurance, universal life insurance can also allow customers to directly participate in the investment activities of funds in the investment account established by the insurance company for the policyholder, and compare the value of the policy with the funds in the investment account of the policyholder operated independently by the insurance company. performance link.

What is variable life insurance?

Variable life insurance is a fixed premium, while insurance annuity is long-term life insurance that varies with market value or the investment returns of the insurer’s chosen investment segregation. Variable life insurance is a type of whole life insurance in which the insured amount changes with the investment income of its premium segregated account. Variable life insurance not only enables policyholders to enjoy insurance protection but also meets people’s needs for investment-type insurance products. And it also effectively offsets the adverse effects of inflation on life insurance.

What is the difference between variable life insurance and universal life insurance?

1. The “change” of variable life insurance is reflected in the fact that the premium and surrender of a variable life insurance change, and it changes with the change of the investment income of the separate account set up for the policyholder. After purchasing variable life insurance, after the policyholder pays the premium, the life insurance company deducts the insurance fee and puts the remaining funds in a separate account established in the name of the policyholder. The funds in the separate account are used to purchase one or several units of investment funds. Investment funds invest primarily in various securities. The insured amount of variable life insurance can change with the investment income in the financial market.

2. Most of the premiums of universal life insurance are used to purchase investment account units established by insurance companies. Investment experts are responsible for the mobilization of funds in the account and investment decisions, and the insured funds are invested in various investment tools. It is a financial management method that calculates the value of the assets in the investment account and ensures that the policyholder can rely on expert financial management to conduct investment operations under the premise of enjoying the principal of the account balance and a certain interest guarantee.

After reading so much, I believe that many insurance consumers who are laymen are still ambiguous about these two types of insurance. According to the following characteristics, they can easily choose the type of insurance that suits them: Universal life insurance costs are transparent, guaranteed, and flexible payment. , suitable for people with an unstable income, focus on investment safety, and desire small and medium returns; while variable life insurance has a variable amount of coverage, greater investment risk, but flexible investment, suitable for white-collar people with stable income and certain savings.

After reading so much, I believe that many insurance consumers who are laymen are still ambiguous about these two types of insurance. According to the following characteristics, they can easily choose the type of insurance that suits them: Universal life insurance costs are transparent, guaranteed, and flexible payment. , suitable for people with an unstable income, focus on investment safety, and desire small and medium returns; while variable life insurance has a variable amount of coverage, greater investment risk, but flexible investment, suitable for white-collar people with stable income and certain savings.