From the perspective of the nature of wealth management products, the so-called Hong Kong financial dividend insurance that is marketed in the mainland is not insurance at all!
Why do you say that? If you compare all the wealth management products including insurance, there are five categories:
The first category: fixed income products
You buy money in the bank, or some Many of the wealth management products sold by the tripartite institutions are like this. Such products often have a principal, a time limit, and an interest rate. The accurate term for interest rates is a benchmark for performance comparison.
include public funds and private equity funds. These products have a principal, historical performance, and an open day, which can be purchased and redeemed on a regular basis. Generally speaking, public funds can buy and redeem at any time, and the frequency of private equity funds is lower, usually 1-2 times a month. Such products tend to be more volatile, risky, and have better liquidity.
The third category: equity investment products
Also known as PE, the liquidity of such products is very poor, and often sets a closed period of several years, during which time it is not allowed to withdraw. These products are very risky and, of course, may have very good returns.
Fourth category: Principal + Closed Period + Demonstration Benefits + No Guarantee of Interests and Interests
I will sell the first one. Can you guess what this product is? That’s right, this is the Hong Kong Wealth Management bonus that comes to the mainland. The principal is the premium. During the closure period, is there a closed period for insurance, and is not allowed to surrender? Although Hong Kong Insurance did not say that it is not allowed to surrender, it is often zero in the first two years and the first three years. Can be surrendered, but can not return a penny, is this not the actual closure period? I have seen a Hong Kong insurance plan with a cash value of 0 for the first 9 years and a closed period of 9 years.
The demonstration benefits of Hong Kong Insurance are also exaggerated. A salesperson who has heard of a Hong Kong insurance company said that Hong Kong’s supervision is allowed as long as the demonstration yield is less than 9%. In the mainland, dividends are subject to strict upper limit regulations, and must be divided into low, medium and high grades, and the interest rate is strictly prohibited.
The demo benefits are of course not guaranteed. The most sold in the mainland is the soaring of Hong Kong’s Prudential. According to the data released by its official website, the dividend situation is terrible.
While the benefits are not guaranteed, the Hong Kong Financial Dividends are often not returned to the premium terms. That is, it is not guaranteed.
One of my clients asked me to accompany him to see a Hong Kong-based peer. This peer recommended a wealth management risk called a promising future. I asked him: buy you a promising future and buy Hong Kong Hang Seng Index, which is more profitable?
He hesitated, saying that it is the Hang Seng Index.
I said: Since the Hang Seng Index is more profitable, the Hang Seng Index does not guarantee the principal and interest. In the future, the Hang Seng Index will be more flexible. Why don’t I buy the Hang Seng Index?
He hesitated longer and said: According to Article 73 of the Contract Law, insurance has the effect of avoiding debt.
I smiled: You said that Article 73 of the Contract Law is the “Contract Law of the People’s Republic of China”. As far as I know, Hong Kong insurance contracts are signed in Hong Kong and should not be applied. Ministry of law. Even if applicable, Article 73 of the Contract Law is a relevant rule for subrogation, and does not say that insurance can fight against debt.
I don’t say much about this law. If you have heard of my Insurance Review, it should be no stranger. In a word, this law does have something to do with insurance, but it is not the basis for insurance against debt. It is not for mainland insurance, let alone Hong Kong insurance.
There are many ways in which Hong Kong insurance can fool the mainland customers, and there are many, many of them.
The fifth category: principal + fixed income + (floating income) + (guarantee principal and interest)
This is the mainstream form of our mainland financial insurance. The so-called fixed income refers to the clear return in the contract, mainly the various survival gold. Floating income refers to an indeterminate dividend. An insurance can have no uncertain dividends, but it cannot be without certain benefits.
For example, China Life’s opening-up products are enjoyable, and Ping An’s products are open to life. The universal account also has a clear guaranteed interest rate clause.
At the same time, these products also have provisions for returning premiums, so that they have guaranteed the principal and interest.
It’s not just China Life Insurance, China Ping An, but almost all companies in the mainland can do this, it’s ok.
The purpose of buying insurance is to determine if insurance is uncertain, why should I buy insurance? Floating things, all wealth management products can be realized, and only certain insurance can be achieved. Do you agree?
Location of Insurance in Family Wealth Configuration
This is the model of the financial pyramid that many financial institutions I have found online. You see, Insurance is the bottom of the pyramid and the foundation of the Fortune Building. Why is this happening? I will show you a picture.
You must not guess where this is. This is the site of the Palace of the Han Dynasty. The picture below is the restoration map of Weiyang Palace.
The millennium storm, only the foundation is left. No one will want an uncertain foundation, which is the role of insurance in family wealth. It is not used at all, and the wind and rain are the strongest. Buying insurance is to determine that a wealth management product that does not have a certain interest is not insurance at all.
This is why I said that the Hong Kong dividend-based financial insurance that is marketed in mainland China is not insurance at all!
If my client asks me about Hong Kong insurance, I will tell him that buying insurance is for the sake of determination. If you only want floating income, don’t care if you are sure, I suggest you To buy a fund, if you like foreign currency assets, you can configure the Hang Seng Index.