The overall environment is not good nowadays. Many people don’t know where to deposit their money. Bank interest rates are frequently lowered, and stock funds are even less optimistic.
Therefore, many people have set their sights on increasing term life insurance, especially dividend insurance that has both the protection function of life insurance and the attributes of wealth planning.
For example, the Xingfujia Whole Life Insurance (with dividends) underwritten by Fosun Pramerica Life Insurance has rich policy benefits and, with added dividend benefits, a long-term compound IRR of nearly 3.7% , which performs better than most dividend insurances.
So, what about Fosun Pramerica Xingfujia Whole Life Insurance (Participating Type)? Is the return really strong?
1. How about Fosun Pramerica Xingfujia Whole Life Insurance (with dividends)?
Let’s take a look at the warranty of this product:
Pramerica Fosun Xingfujia Whole Life Insurance (Participating Type)
Fosun Pramerica Xingfujia Whole Life Insurance (with dividends) can provide the insured with lifelong protection, and have the opportunity to enjoy dividends from the insurance company , thus achieving long-term and stable appreciation of assets.
This product supports people aged 30 days to 70 years old , and elderly customers can also purchase insurance. Xingfujia supports insurance reduction, and the insurance reduction rules are written into the contract. After the contract has been in effect for 5 years, you can apply for insurance reduction, and the annual insurance reduction shall not exceed 20% of the basic insurance amount .
After the policy cooling-off period, you can apply to designate a second policyholder. After the policyholder dies, the second policyholder can take over the policy and enjoy the corresponding protection rights. After the age of 60 or 10 years after the policy takes effect, it can be converted to annuity insurance .
Moreover, the cash value of Xingfujia’s product grows rapidly. If you pay for 1/3/5 years, the cash value will exceed the paid premium in the 7th year. If you pay for 10 years, the cash value will exceed the paid premium in the 9th year. The cash value grows rapidly.
SEO insurance consultant (annuity, increasing life insurance) 2
2. Does Fosun Pramerica Xingfujia Whole Life Insurance (with Dividends) have strong returns?
Fosun Pramerica Xingfujia Whole Life Insurance Dividend Type divides the income into guaranteed income and dividend income.
Guaranteed returns refer to the minimum returns promised by an insurance company in the absence of dividends; dividend returns depend on the performance and dividends of the insurance company, and have a certain degree of uncertainty, but also provide the insured with the possibility of higher returns.
So, how does the dividend income of Fosun Pramerica Xingfujia Whole Life Insurance perform?
Let’s take a 30 -year-old male who pays 100,000 yuan per year for 10 consecutive years, for a total of 1 million yuan.
Fosun Pramerica Xingfujia Whole Life Insurance (Participating Type) Benefits
It can be seen that the policy cash value and dividend income of this product will increase with the extension of the insurance period. In the 10th year of the policy, Fosun Pramerica Xingfujia Whole Life Insurance Dividend Type achieved a payback.
With the support of dividends, the policy can pay back the principal 2 years in advance. Moreover, with the support of time, after the age of 70 , the IRR of this product has the opportunity to exceed 3.5% . At the age of 100 , there is a chance to achieve a return of more than 10 times the capital.
So, can the dividend realization rate of Xingfujia Whole Life Insurance remain stable in the long term?
Next, let’s take a look at the dividend realization rate of Pramerica Fosun’s products in previous years:
Fosun Pramerica Xingfujia Whole Life Insurance (Participating Type)3
It can be seen that what Pramerica Fosun has announced so far is the dividend realization rate for the period 2013-2023 , a total of 11 years. The dividend realization rate of the 23 products is 100% , and the dividend realization rate of some products reaches 167% .
The dividend realization rate can reflect the “expected realization” of an insurance company. Pramerica Fosun’s realization rate is still relatively impressive, which also proves that Pramerica Fosun is very experienced in dividend insurance operations.
But past performance does not represent future performance. In extreme cases, the bonus may still be 0 ~
SEO insurance consultant (annuity, increasing life insurance) 2
3. Is the underwriting company of Xingfujia product reliable?
Xingfujia Insurance Company is underwritten by Fosun Pramerica, a Sino-foreign joint venture insurance company established in 2012 and headquartered in Shanghai. It is a joint venture life insurance company jointly initiated by Fosun Group and Prudential Financial Group of the United States .
The Chinese shareholder is Fosun Group, one of China’s top 500 companies, an investment group focused on China’s power, and a first-class enterprise with total assets of 823.1 billion yuan.
The foreign shareholder is Prudential Group of the United States, one of the largest life insurance companies in the world. It has a long history of 148 years and has experienced two world wars and multiple economic cycles. Compared with premium income, it attaches more importance to stable development.
The two shareholders each hold 50% of the shares of the joint venture, and the checks and balances between the two create good conditions for the development of Pramerica Fosun.
Fosun Pramerica Xingfujia Whole Life Insurance (Participating Type)4
According to the data disclosed on the insurance company’s official website, Pramerica Fosun’s solvency in the fourth quarter of 2023 is as follows:
Core solvency ratio: 136.51%
Comprehensive solvency ratio: 175.54%
Risk Rating: BB
Especially in the context of the not-so-good investment environment last year, the average comprehensive investment return rate of life insurance companies was 3.85% , while Fosun Pramerica’s comprehensive investment return rate reached 6.16% . It can be seen that Fosun Pramerica’s corporate strength and investment capabilities are very strong and trustworthy.
4. Summary
In general, Fosun Pramerica Xingfujia Whole Life Insurance (with Dividends) is a product that provides comprehensive protection and includes dividends. It has high policy returns, and the IRR can reach 3.70% when the dividend realization rate is 100% . Moreover, it is backed by a large company with strong company strength, so everyone can feel more at ease.
