“3.5% interest rate is about to become a swan song!” “Locking 3.5% now is locking the speed of earning money in the future” “I once had a sincere 3.5% insurance product in front of me, but I didn’t cherish it, and regretted it when I lost it It’s too late…” Recently, there has been frequent news in the industry about the reduction of the predetermined interest rate of insurance products from 3.5% to 3.0%. The reporter learned from many large insurance companies in Wenzhou that there are still a small amount of 3.5% compound interest incremental life insurance that can be insured at this stage, but it will be adjusted soon.
3.5% interest rate insurance products and
“It is a trend that insurance products with a predetermined interest rate of 3.5% will withdraw from the market, and the exit time may be in July this year. After that, the predetermined interest rate of insurance products bought will drop to 3.0%.” Yesterday, Pacific Life Insurance Co., Ltd. Wenzhou Zhongzhi Manager Li of the insurance business department told reporters.
What is a predetermined interest rate? It can be generally understood as the rate of return on investment that insurance companies promise to customers. Usually, products with higher predetermined interest rates are more cost-effective. For example, the higher the predetermined interest rate of critical illness insurance and term life insurance, the cheaper the premium and the higher the protection amount; while the incremental life insurance and annuity insurance are reflected in higher yields and more cost-effective insurance. Once the interest rate is lowered, the customer’s income will be directly affected.
The reporter found that there are many large insurance companies in the Wenzhou market, and there are still a small number of insurance products with an interest rate of 3.5%. “Insurance also has a bonus period. It is recommended to buy some annuity insurance at this stage.” Manager Li introduced a 600,000 yuan 3-year insurance product to reporters. 3.5% compound interest increases, after calculation, the annual increase is more than 20,000 yuan.
Similarly, Huaxia Insurance currently has different amounts of 3-year, 5-year, 10-year, and 20-year “Heirloom” series of 3.5% interest rate lifetime incremental life insurance products; a salesman from Ping An Insurance also posted on Moments A poster of the “Golden Baby” wealth management product was released. The poster information shows that the product starts at 100,000 yuan, with a 3-year interest rate of 3.41% and a 5-year interest rate of 3.6%.
Consider your own risk profile before buying insurance
As bank deposits start the “interest rate cut” mode, the insurance industry is also facing pressure to “cut interest rates”. As early as late March this year, the China Banking and Insurance Regulatory Commission issued a survey notice to the Insurance Association and 23 life insurance companies, making it clear that it will focus on investigating the debt costs of insurance companies. According to reports from China Business News and Financial Associated Press, the upper limit of pricing interest rates for new products developed by life insurance companies will be lowered. The upper limit of predetermined interest rates for ordinary life insurance will be lowered from 3.5% to 3%, and the maximum interest rate for dividend products will be 2.5%. Products up to 2%.
“In the past two years, more and more people have come to buy insurance. Some people have invested in the insurance industry because of the downturn in real estate investment, and some have lost money in banks, so they have invested in the insurance industry.” Zheng Zheng, the insurance business manager of Wenzhou Branch of China Life Insurance, said, In the current low interest rate environment, the product with a predetermined interest rate of 3.5% is about to withdraw from the stage of history. Before the rate adjustment of insurance products, there will be a crazy sales “feast”.
Industry insiders believe that investors should remain rational when purchasing such products, and must understand the products comprehensively and clearly, and do not start blindly under the “discontinued” marketing of products. In addition, the reduction of pricing interest rates only affects products with pricing interest rates above 3%, and has almost no impact on products with original pricing interest rates below 3%. Not all old products should hurry up and “get on the bus”.
Source: Wenzhou Evening News
Original title: Newly developed insurance products may bid farewell to the 3.5% predetermined interest rate
Reporter: Yu Tingting
This article is transferred from: Wenzhou News Network 66wz.com