Universal insurance rates lower the value of the investment decline

Central Bank on September 10 the two-month interest rates down 3 times, which is bound to make large investments in order to deposit-based insurance companies affected. Early in November, more insurance companies to respond on October universal insurance settlement for the interest rate down to varying degrees. In the industry are concerned that the loss of the high rate of return in this attractive sign, universal insurance market will tend to cool.

Universal life insurance for co-existence of life and death, in addition to security, but also with a certain amount of revenue and earnings at the end of security under the (annual interest rate of 2.5 percent at the end of Paul), does not cap the monthly settlement, policyholders can receive at any time. Universal implementation of compound interest calculated risk, "Lee Lee roll", "power" of the insured has its own appeal.

Recently, the bank cut interest rates twice in January, lower deposit interest rates 0.54 percentage point, one-year rate to 3.6 percent. Professional Insurance analysts believe that the bank's interest rate cut will not directly affect the insurance risk everything on the short-term investment income as a panacea for the settlement of interest rate risk will be an adjustment accordingly.

Analysts further said that the reduction in interest rates on long-term development of universal insurance is still influential as universal income insurance premiums to invest mainly in bonds, funds, as well as the larger deposits, which are subject to interest rates. Insurance companies have a high rate of return in order to promote universal insurance, it is not reflected in the high-return, this will result in decreased sales. It was part of the insurance company to reflect that advantage is no longer universal insurance, the premium collection of follow-up difficult.

Various insurance companies in October released the latest data show that universal insurance billing rates average about 4.36 percent. Early in November, has been part of the insurance settlement for the first interest rate cut. For example, personal safety universal insurance settlement rate down to 5.5 percent from 5.25 percent, Xinhua Life Insurance, and proudly financial co-existence of insurance (universal type) down to 5.20 percent from 4.95 percent.

Experts predict that the statistics in paragraph 51 of the products, with the exception of some products to set interest rates at 2.5% -4% more stable, about half of the universal insurance settlement will cut interest rates. Universal insurance settlement will cut interest rates as a direct result of the reduction in investment income insured, so that the universal appeal of the loss of insurance.

Analysts said the above, do not have to risk everything too much attention to its yield, the most of it is still the core function of co-existence to protect life and death. Should not be insured to earnings ratio, and its revenue in 5 years, and certainly not compared to bank deposits. The reason why universal insurance "universal" is to adjust the amount of insurance premiums and flexibility designed to be a variety of life insurance, life insurance co-existence, life insurance alternatives on a regular basis. In order to reduce the settlement proceeds for the reduction in interest rates, can increase the amount of protection, some of the savings to lower the risk so that everything returned to its security features, this is the essence of it.