Will the principal of participating insurance be refunded after the age of 60?

I received a call from an insurance company last month, recommending me to buy a product such as a dividend-based annuity. They also said that the China Insurance Regulatory Commission would implement new policies during the National Day holiday and this product would be removed from the shelves. There aren’t many opportunities, so reserve a spot for me.

In fact, if you think about it carefully, why did the China Insurance Regulatory Commission issue new regulations to remove such dividend-paying products from the shelves? This product is definitely defective, and various insurance companies still use this as a booing to carry out their final crazy marketing, which is really speechless. Okay, let’s talk about the product in detail and tell you what are the pitfalls of this highly hyped product by various companies.

Take the product I received as an example: each copy is 1,000 yuan per month, and the annual payment is 11,000 yuan, and the maximum payment is 10 years.

After paying the money, you can receive annuity until the age of 105. There are two dividend modes:

1. You can withdraw cash starting from the second year, and you can withdraw 2,000 yuan every year. 59 years old. Starting from the age of 60, you can withdraw 8,000 yuan every year until you die. Of course, the beautiful salespersons who sell insurance will definitely not list numbers as simply and crudely as I do. They will say that pensions are insufficient now and the quality of life will inevitably decline after retirement. If you buy this product, you will receive more money every year after the age of 60 than before. 4 times of the amount, very generous, until death, it was all for nothing. If it was really for nothing, then the people in the insurance company would starve to death. When you are 80 years old, the principal will be returned directly to you, which is 110,000.

2. If you don’t withdraw money every year and put it in the account, you can earn interest. Note that it is not the interest on the principal of 11,000 yuan, but the interest on the 2,000 yuan that you could have withdrawn every year. Of course the salesperson I won’t tell you, but there are three levels of annual interest, the lowest is 2.5%, the average is 4.5%, and the highest is 6.5%. The same amount will be given to you at the age of 80.

Okay, I’m starting to complain. Except for the slots in parentheses above, the annual interest rate is 4.5%, with a maximum of 6.5%. Is it very high? The salesperson said it is very high, usually 4.5%, and it has reached 6.5% in the past two years

The annual interest rate of Yu'e Bao, a super flexible currency fund that can be withdrawn within 2 hours, is now 4 %, the highest is more than 7%, now there are a lot of financial products, it can easily reach 5%, I will calculate it as 5%.

For example, if you are 30 years old now, you will pay 11,000 yuan every year for 10 years.

The algorithm for the first 10 years is: 1.1+(1.1*1.05^1)+(1.1*1.05^2)+……+(1.1*1.05^10)

Later It is a simple compound interest calculation: principal after 10 years * 1.05^N

When you are 105 years old, you will have 2.58 million. As long as you live long, you can become a wealthy person

Press Mode 1: Receive annuity at the age of 80: 0.2*30.8*211=330,000 yuan? Haha

Receive an annuity of 0.2*30.8*45+11=530,000 yuan at the age of 105? Haha

According to mode 2 and keep saving: according to different grades

At the age of 80 plus a one-time return of the principal of 110,000 yuan

At the age of 105, This is the salesperson’s favorite example of high-end products! !

More than five million, are you excited?

But you have to understand that this is based on the highest interest rate of 6.5% starting from the age of 30 until the age of 105.

Let’s see if we adjust the interest rate for our own financial management to 6.5%.

Compared with the same period, only when you are 80 years old can this product surpass us based on the high-end interest rate (6.5%) level of managing one’s own finances (5%).

And when the interest rates are the same, as shown in the table above, haha.

Finally, here is the document from the China Insurance Regulatory Commission. If you want to see it in detail, there is the link /web/site0/tab5174/info4070148.htm

As a very important role in family financial management, insurance can bring us It is necessary to have great protection, but insurance companies should sell insurance properly and not tinker with financial products.