Life insurance is intended to protect the insured person or the insured against health risks (natural disasters, accidents, illness, illness, death) and to accumulate savings. Be sure to have the financial resources you would like to do to perform the job or obligation to do when the policy expires or after they unfortunately die.
On the other hand, the price for a loan (interest rate) depends on the need for capital and the ability to use loans to profitability of production and business establishments. If businesses are doing business properly, effectively they never accept high interest rates because they can raise capital from securities (issuing shares or issuing corporate bonds Interest is paid in attractive dividends. In contrast, for businesses that accept high interest rates, the underlying credit risk does not recover principal and interest. As a result, banks and credit institutions also face credit risks and risk of capital mobilization. Life insurance is a long-term savings product, so in addition to preserving capital, it must have a reasonable interest rate (insurance) for the long term of the insurance policy combined with risk prevention for the participants. insurrance. In accordance with the above conditions, life insurance has a mixed insurance product that covers insurance benefits even if the insured person lives to a certain age or dies within a certain period of time and is covered by insurance. ie. The goal of a mixed-end product is to target customers who need a certain amount of money to carry out their work in the future for a predetermined amount of time, even if the insured person accidentally dies. That money is still guaranteed to pay: Pay for tuition fees (from tuition to meals, accommodation ...) at level 2, level 3, university, vocational school, study abroad ... With the tradition of studious learning, parents Care for children, this product is attractive to the Vietnamese, especially as tuition fees are increasing, schools are implementing financial autonomy (tuition is the source to cover the cost of school) and socialization of education (equitization of schools). Bring your husband to give your children, dowry donations (buildings, cars) when children build families separated in private. This is the desire of middle-income families. There is some money to repair the house, build a new home to be beautiful, more dignified, even some people still worry enough money to build a grave for the parents or for themselves not lost. poor friends, village. Have some capital for yourself or for children to do business, set up a new career stabilize. If the insured person dies, he or she will be paid insurance money to cover the family's debt (borrowing from friends, relatives to buy a house, buying a car ...), covering family expenses or have more capital to do business, add an occupation or work when a source of income of the dead is no longer ... From these needs, the insurer can design a variety of insurance products with different amounts of insurance and different charging periods targeted at the customer segment (high income, medium save, popular, poor), geographic region, different customs and habits. The characteristics of mixed life insurance products are either pledged to interest or rewarded. The longer the premium paid, the higher the investment premium. Therefore, customers who terminate the insurance policy before the due date are often disadvantaged when they receive low payment (the remaining years of the policy if the insured continue to receive more insurance) . The longer the insurance contract is, the longer the time it takes for the sickness, illness, accident or injury to occur, to see the meaning and effect of the insurance. ro, accident). However, to implement a mixed life insurance product, the insurer must pay attention to: Convince customer when the guarantee is lower than the savings interest rate because this difference covers the cost when the insured risk occurs to the insured (illness, illness, accident). The validity of promissory notes has a long-term value equivalent to the term of the policy, while the interest rates of the banks tend to fluctuate over time. In addition, if the investment is more profitable, the insurer must also provide increased insurance premiums to the insureds when implementing the regulations of the State: at least 70% of the investment profits shall be distributed to the insured. . Conversely, if the interest rate of the bank decreases, the interest of the insurer will still be paid. The insurance policy is that if you do not give up the policy before the due date, the insured will certainly be entitled to the full amount of the insurance even if the risk arises. Try to convince and offer solutions to solve difficulties and problems for customers when they can not afford (temporary) to pay premiums, the disadvantage when customers terminate the contract. Pre-term insurance. Control is riskyinsurance before signing insurance contracts, restoring insurance contracts or during the process of reviewing payment documents for payment of insurance premiums. To strictly comply with the State's regulations on splitting the owner's fund with the policyholder's fund and the minimum percentage of investment profits from the insurance policy fund of at least 70% for the policyholder. Be cautious about making a commitment to insurance (depending on your insurance policy) as it is valid for 5 years, 10 years, 15 years, 20 years or more, then when the economy is built up capital market, money market has many changes (if any). 3. Competition with capital markets When capital markets such as government bonds, treasury bonds, local government bonds, corporate bonds, fund certificates, corporate shares, real estate business, business investment capital contributed It attracts a lot of idle money into this sector with the promise of higher interest than bank savings. But investment in this area is not easy, requires knowledge and certain conditions. To buy bonds, stocks must have collateral at banks or securities companies at least equal to the deposit and auction to buy. If successful win. Price too high, buy at low prices, too low can not buy. That is not to choose risky investment portfolio: buying bonds, shares of a business is showing signs of decline. Therefore, in order to attract people with little or no money, it is possible to participate in profitable investment. The insurer has a group of investment insurance products, including 02 types of insurance products as follows: Universal life insurance is a type of life insurance product that includes hedging and investment. In which the investment part is the insurance company together with the customer using the client's money spent for investment into the financial investment for profit purposes. The role of insurance enterprises in investment activities is to actively invest and commit to pay investment interests to insurance participants according to the announced interest rate (monthly or quarterly). The insured person acting as the mandator of the insurer acting on the investment task does not care about which sector the investment is in, the investment portfolio, the return on investment How to pay attention only interest is divided according to announced. If interest rates are high, attractive insurance premiums can increase the amount of premiums paid to increase the amount of investment to bring more profit. If interest rates fall, insur- ance may reduce the size of the investment by reducing the amount of premiums paid. With the way to increase the decrease in investment amount, increase and decrease the investment interest rate (public announcement) flexible, public transparency, this insurance product has attracted many people to join the insurance with premium income claim New waterfall approximated by mixed life insurance. Unit linked insurance is a type of life insurance product that includes insurance for the risks specified in the insurance contract which is separated into separate parts, the rest is the investment. Insurance companies form an investment fund consisting of at least three funds: risk, stabilization and safety (two risky and relatively safe funds may be added). Each type of fund on the insurance enterprise shall announce at least 20 selected categories for investment and to announce the price of fund certificate of each type of fund (unit price). Investors use their funds to invest in each of the above funds (01 or more funds) with the amount invested in each fund may be different. Every week, the insurer shall have to announce the unit price of each fund on the mass media. Insured persons shall base themselves on the price of certificates of each fund to change their investment in the following ways: Partially or wholly sold (unsold) unit certificates of ineffective investment fund (going down) for insurance companies to buy at the announced price. Add some unit certificates of some other investment funds when the unit price of this investment fund is on the upward trend or is expected to touch or near the bottom to increase further. Funds for investment are obtained by selling another investment unit certificate or by investing more.
Selling all or part of the fund unit certificate is high for insurance companies to take profits.
As such, the investment activity of an insurance enterprise acts as an investment fund management company (giving a list of investment units and unit price of each fund), the insured participant has the right to take the initiative How much money do you invest in the fund (the number of units in the fund certificate) and of course the food (price increase), losses (price drop).
However, insurers are also at risk when making inappropriate investment portfolios that result in low investment, lower unit price of fund certificates, insureds being forced to sell if there are no people. Acquired insurance companies are naturally buyers who hold this item waitingto sell to others.
With the flexible investment method, saving time, cost and effort for insurance participants who want to invest, they do not have to analyze and evaluate information access options in the stock indexes, production situation. the business of the selected investment units, easy to sell investment fund certificates to take profits or run away will attract more people to participate in insurance. With the stock market, the real estate market is not stable and sustainable development, many insurance companies do not dare to deploy unit linked insurance (the final risk insurance enterprises must In some cases, insurance companies are deploying, but very cautious.
4. Compete with voluntary pension insurance
Under the current social insurance scheme, employers and employees must pay compulsory social insurance to social insurance agencies each month, including health insurance, unemployment insurance and health insurance. maternity insurance, pension insurance for sick days, accidents, maternity, severance pay, occupational disease insurance and pension insurance.
The current social insurance scheme shall be paid when the laborer has paid social insurance premiums for men for 30 years and reaches the age of 60 years. Female is 25 years and 55 years old. The retirement age in some other occupations is lower. Pay early 2% of pension every year. Average retirement age of 10 years.
Thus, most pensioners are employed in administrative agencies, police, army and business (currently 11 million people). The majority of enterprises pay social insurance premiums at a lower rate than the actual rates paid. Moreover, Social Insurance only accepts the highest wage level to pay social insurance premiums at 20 times the minimum wage (20 x 1,250 .000d). Therefore, some workers in high-level management, skilled and knowledge-intensive sectors contribute to high salaried enterprises but pay low wages and this is also a force to be reckoned with. Businesses in favor of more attractive, easy to be dragged by competitors need to be supplemented by the pension insurance system by voluntary pension insurance to secure a stable high income when the age of labor.
On the other hand, many freelance workers, farmers, artisans, farm owners, small traders ... are not subject to compulsory social insurance. Therefore, the need to develop voluntary retirement insurance is essential to meet the above.
At present, the State is controlling the voluntary employer's voluntary retirement insurance premiums for employees at low levels, so they have not been satisfied because they have not met the demands of employers and employees. High income earners stay dedicated to their businesses.
Insurance companies design voluntary retirement life insurance products (as guided by the Ministry of Finance) as follows:
Risk insurance: payment of insurance benefits to insured or insured persons in the risk of illness, accident, occupational disease, maternity, labor loss, death or money (family care) where the insured person chooses the risk and amount of insurance.
Contributions to voluntary retirement plans: The insured person selects monthly, quarterly, and annual contributions, and may increase or decrease the terms of the insurance policy with the time of contribution. optional, before the month before the retirement age. The time to start paying for a male pensioner is from 60 years old, 55 years old. The time to pay the pension depends on the selected insured person: pay only once after retirement; monthly, quarterly, and annual payments (at least 15 years after retirement) or lifetime payments (until death).
Voluntary retirement fund management principles are publicly disclosed. After the insured has paid the insurance premium, the insurer is entitled to deduct a certain amount from the insurance premium and the operating expenses, and the remaining amount will go to the voluntary retirement fund. It is on the account of the policy holder (insured person) on the principle that each customer has 1 account.
And the periodical investment interest on the amount deposited on the account of the insured shall be transferred to the account in the period after the result of the announcement of interest. The insured person can track his or her amount of money on the account including premiums paid and investment returns earned. The amount of money is always owned by the insured regardless of whether they move to work in another enterprise, to buy insurance for a pension from another insurer, or for insolvent insurers. Money is deposited on the customer's account to pay the debts of the insurer.
If the insured person for any reason fails to pay the insurance, the insurance contract will pause but the above amountTheir accounts will be covered when they are permanently disabled, die or reach retirement age.
With the added benefit of employee retirement benefits, flexible options for risk, premiums, premium payments, retirement pay and retirement benefits Clear, transparent to the insured know the amount of money at any time.
In general, competing with outside the insurance market, life insurance companies have designed insurance products that match the market niche that left the competition unreachable or impossible with. such as: high quality health insurance with long-term health insurance, large amount of insurance with social insurance, mixed life insurance with mobilized savings general insurance and unit linked insurance with investments in bonds, fund certificates and real estate.
The competition issue here is simply to compete for the opportunity to attract idle money into the sector. On the contrary, the development opportunities of life insurance contributed indirectly to the growth of credit, securities and real estate through investment results of insurance companies in bank deposits, bills, shares and investment in the field of real estate business. As a result, many banks and credit organizations have cooperated with insurance companies to jointly attract and use these valuable medium and long-term insurance premiums.
As a result, as of 31/12/2015, according to the data of the Insurance Supervision and Supervision Department of the Ministry of Finance, insurers have mobilized idle capital to invest in the national economy with over 125 trillion dong Approximately $ 6 billion, mostly for a period of 5 to 30 years.
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