Notice on Suspension of Dividend Insurance

Official website, who went to the China Insurance Regulatory Commission, checked the announcement and found that a document was misread.

In September last year, Document No.76 issued by China Banking and Insurance Regulatory Commission put forward several new requirements for the design of insurance products, which was formally implemented on April 1 this year.

In addition to the requirements, this notice also clearly pointed out that several insurance products that do not meet the requirements of China Banking and Insurance Regulatory Commission will also stop selling before April this year 1.

It was the word "stop selling" that began to be misunderstood by insurance salesmen, such as:

"There will be no returned products for sale in the future. If you don't buy them, you will be gone."

"If an agent recommends you to buy insurance, please don't refuse, because you may never buy these insurances again."

……

Even the official WeChat account, some insurance companies, spread wrong interpretations in a biased way. The screenshot of the file inside also deliberately erased the important content, and only circled the message "Stop selling":

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

Today, Bian Xiao briefly explains the No.76 insurance document issued last year:

Not all returned health insurance and commercial endowment insurance should stop selling, and the following unqualified insurance products should be delisted.

1. If the guarantee level is not up to standard, the sales shall be stopped.

The specific content of the file is shown in the screenshot above. It means that raising the lower limit of the ratio of insurance amount to premium is equivalent to raising the degree of protection and raising the leverage ratio, which is beneficial to the beneficiaries in essence. Therefore, insurance products that do not meet this standard must stop selling before April 1, not all types of products. In other words, it is best to stop selling those products with low cost performance.

2. The evaluation interest rate of the universal insurance liability reserve is higher than the annual compound interest of 3%, and the sales will be stopped if the conditions are not met.

Many bank insurance products that investors buy in banks are packaged in this universal insurance. The yield of such products is not low, ranging from 6%+ at every turn, and even promises a guaranteed interest rate of 3.5%. High returns and high risks behind them. Therefore, in order to improve the safety of customers' funds and prevent financial risks, China Banking and Insurance Regulatory Commission has limited the interest rate ceiling of universal insurance in Document No.76.. Therefore, if the requirements are not met before April 1, the sales will be stopped.

3. Provide insurance for policy loans, and stop selling when the loan ratio is too high.

Some savings-oriented policies can be secured by loans. Previously, the loan ratio could exceed 80% of the cash value of the policy, while the loan ratio of many products was as high as 90%, and it is said that some even exceeded 95%. After April 1, the proportion of all policy loans cannot be higher than 80%, and violators must stop selling.

For example, the cash value of the policy is 1 ten thousand. You can borrow 900,000 or even 950,000 yuan before April 1, and only 800,000 yuan at most in the future, which is equivalent to a decrease in capital turnover. Therefore, for this kind of products, Bian Xiao thinks that if you take a fancy to the fund turnover function of the policy, you can buy it when the loan ratio is high now, otherwise it is not necessary to buy this kind of insurance before the suspension to get more loans.

Bian Xiao believes that the products that have been discontinued are not as "value-added" and "perfect" as advertised. Don't blindly follow the propaganda of "discontinued sales". To buy insurance, you must choose the insurance products that suit you from the aspects of premium and protection level according to your own insurance needs.

For the insurance products that have been purchased and discontinued, the insured can also rest assured that the insurance company will fulfill the terms in accordance with the contents agreed in the contract. In other words, the rights and interests of the insured will not be affected by the suspension of product sales.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.