The annual rate of return assumed by an insurance company for a policy based on a projection of investment returns when pricing the policy is commonly referred to as the rate of return the insurance company offers to consumers.
A higher predetermined interest rate means that the insurance company takes on greater costs and investment risk, while everyone gets the benefit. A lower predetermined interest rate means less investment risk for the insurance company, but then the consumer has to pay a greater cost. Although the predetermined interest rate of critical illness insurance in the market is mainly around 3.5%, which has little impact on the premium, for many participating financial insurance, the predetermined interest rate plays an important role. The sales strategies of large insurance companies and small insurance companies are different. Small companies are more inclined to sell at thin margins so that they can attract more consumers, which also reflects the competitive strategies of different insurance companies. So what is a big company and what is a small company? In this paper, we believe that the size of an insurance company is not an important criterion. Because the government has strict requirements for the financial strength of shareholders of insurance companies, and the core indicators such as solvency are under the strong supervision of the state.
In addition, the current market is very competitive, and to gain market share, some insurance companies are naturally willing to offer lower prices for the same coverage or more and more coverage for the same price. It does not mean that small insurance companies are cost-effective, while large insurance companies are not cost-effective. This article suggests that people who are interested in buying a product should not be overly confident in a particular brand and thus blindly trust all the products under that company. Even if the products of the same company, there are different kinds of products, if you do not pay attention to screening, then you have a very high chance of regret after the purchase.
Some people may also have this confusion: is the expensive insurance coverage good? To choose an insurance product, we need to know clearly what the coverage of the product is, what are similar products in the market, and what are the differences. And don't blindly equate high price with high protection. This article explains the reasons for the difference in price between large and small insurance companies, and also talks about the cost-effectiveness of insurance. The article does not encourage consumers to pursue only the cost-effectiveness of insurance. It is recommended that everyone who plans to buy insurance should find out what constitutes insurance and which insurance is better for them. When they have understood the differences between the products more clearly, even if they spend more money to know where to spend it. Only if you think about it and understand it clearly, you may firmly grasp the initiative to buy, otherwise, you will be affected by various views and lose yourself in the noise.
