Why are insurance products delisted?

I went to the CIRC’s official website to check the announcement, and it turned out that a document had been misread.

In September last year, Document No. 76 issued by the China Insurance Regulatory Commission put forward several new requirements for the design of insurance products, which will be officially implemented from April 1 this year.

In addition to the requirements, this "Notice" also clearly states that several insurance products that do not meet the requirements of the China Insurance Regulatory Commission will also be discontinued before April 1 this year.

It is this word "discontinued for sale" that has begun to be misunderstood by insurance salespeople, such as:

"There will no longer be return-type products for sale in the future. If you don't buy it, you will lose it." "

"If an agent recommends you to buy insurance, please do not refuse, because you may not be able to buy these insurances again in the future"

......

Even some insurance public accounts spread misinterpretations in a generalized manner. The screenshots of the documents in them also deliberately erased the important content and only circled the message of "stop selling":

In fact , the purpose of saying this is to stimulate you to buy quickly, routine, routine!

Today, the editor will simply take you to correctly interpret the Insurance Document No. 76 issued last year:

Not all refundable health insurance and commercial pension insurance must be discontinued. Only the following insurance products that do not meet the requirements will be delisted.

1. If the protection level is not up to standard, sales will be stopped

The specific content of the document is shown in the screenshot above. This means that raising the lower limit of the ratio of insurance amount to premium is equivalent to increasing the level of protection and increasing the leverage ratio, which is essentially beneficial to the beneficiaries. Therefore, insurance products that do not meet this standard must be discontinued before April 1, not all types of products. In other words, wouldn’t it be better to stop selling products that are not cost-effective?

2. The evaluation interest rate of universal insurance liability reserves is higher than the annual compound interest rate of 3%, and those that do not meet the conditions will be stopped.

Many of the bancassurance products that investors buy from banks are This kind of universal insurance package. The yields offered by such products are not low, often 6%+, and they even promise a guaranteed interest rate of 3.5%. The returns are high, but the risks behind them are also high. Therefore, in order to improve the security of customer funds and prevent financial risks, the China Insurance Regulatory Commission has issued Document No. 76 to limit the interest rate ceiling of universal insurance. Therefore, if it does not meet the requirements before April 1, it will be suspended.

3. Insurance that provides policy loans will be discontinued if the loan ratio is too high

Some savings policies can be used for policy pledge loans. Previously, the loan ratio could be more than 80% of the cash value of the policy, but many products have loan ratios as high as 90%, and it is said that some even exceed 95%. After April 1, the loan ratio of all policies cannot be higher than 80%, and those that violate regulations will have to stop selling.

For example, if the cash value of the policy is 1 million, you can borrow 900,000 or even 950,000 before April 1. From now on, you can only borrow up to 800,000, which is equivalent to a reduction in capital turnover. So for this type of product, the editor feels that if you are interested in the fund turnover function of the policy, you can buy it when the loan ratio is high now. Otherwise, there is no need to rush to buy this product before it is suspended in order to get more loans. Kind of insurance.

The editor feels that the products that have been discontinued are not as "super value" and "perfect" as advertised. Don't blindly follow the "discontinued" promotions. When buying insurance, you have to base your insurance needs on your own. , choose the insurance product that suits you from various aspects such as premium and protection level.

For insurance products that have been purchased to be discontinued, policyholders can rest assured that the insurance company will fulfill the terms according to the contract. In other words, the rights and interests of policyholders will not be affected by the discontinuation of sales of the product.

Extended reading: How to buy insurance, which one is better, and step-by-step instructions to avoid these "pitfalls" of insurance