It was quite sudden.

According to the latest news from the industry, some insurance companies have confirmed that they will officially stop selling 3.0% increasing whole life insurance on June 30, and plan to launch a new product of "2.75%".

In other words, starting from July, the market will gradually usher in a new generation of increasing whole life insurance with a 2.75% predetermined interest rate as the main product.

From the suspension of the 3.5% predetermined interest rate product last year to now, even less than a year, I have to sigh that the current predetermined interest rate is lowered too fast.

Today, let's analyze with you what signals this reduction in the predetermined interest rate releases, what impact it has on us, and what preparations we should make.

1

3.0% products are getting fewer and fewer.

The first thing to understand is that this time the predetermined interest rate is reduced from 3.0% to about 2.75%, which is very different from last year's reduction from 3.5% to 3.0%.

Last year was an overall adjustment of the industry, and insurance companies were passively suspended. All insurance companies must strictly follow the regulatory requirements of the 3.0% predetermined interest rate cap.

This year, the insurance companies took the initiative to adjust. From the news, we can see that "some insurance companies" are testing the waters first, and only the increasing whole life insurance type is mentioned.

This is a sign, and the expected interest rate is getting closer to 3.0%.

Why do insurance companies take the initiative to lower the expected interest rate? Can 3.0% really be maintained?

We have mentioned before that there are two main indicators that affect the expected interest rate, one is the 10-year treasury bond interest rate, and the other is the investment return rate of insurance companies. To be honest, these two indicators are not very good now.

The 10-year treasury bond interest rate has been falling sharply since last year, and it has been reduced from 2.7% to about 2.3%; the investment return rate of insurance companies, in the first quarter of this year, the comprehensive average investment return was only 2%, which is a bit different from the previous average level of 5%.

In this case, the investment return pressure faced by insurance companies at a long-term 3.0% expected interest rate is too great, so it is understandable that they take the initiative to reduce it. According to the current situation, it is very difficult to maintain 3.0% in the future. After all, the general trend is there.

It is very likely that in the next period of time, the 3.0% savings insurance products still on sale in the market are all old products that have been approved before. After these products gradually withdraw from the market, they will be replaced by new products with a 2.75% interest rate.

2

What preparations should we make in the face of the continuous decline in interest rates?

3.0% savings insurance products, such as increasing whole life insurance, annuity insurance, and the dividend insurance that has been very popular in the past two years, can be regarded as a specific product of the times - safe and stable, locking in lifelong interests, and the cash value at each time point is clearly written into the contract, which is really good.

Seize the opportunity and grab the current 3.0% good products

There are still some excellent increasing whole life insurance products on the market, and the predetermined interest rate can reach more than 2.9% in the long term, or even infinitely close to 3.0%. Click here for product consultation >>

If you have idle funds, and this money is not used in the medium and long term, and you just want to use it to obtain stable benefits, you can consider increasing whole life insurance, dividend insurance, and annuity insurance as a stable value-added tool for family assets.

When you need money for your children's education, marriage, and personal retirement, you can directly reduce the insurance and withdraw cash.

Pay more attention to dividend-type insurance, taking into account both guaranteed benefits and dividend benefits

Friends who have paid attention to savings insurance products in the past two years may have felt that there are more dividend-type insurance products on the market.

A notable feature of dividend-type insurance is that the benefits are divided into two parts, guaranteed benefits and dividend benefits. There is no need to say much about guaranteed benefits, and dividend benefits have a lot of room for upward movement, so the overall benefits are floating.

Basic layer: On the one hand, there must be liquid assets for basic expenses such as "food, clothing, housing, transportation", mortgages, car loans, etc. On the other hand, there must be "protection shields", health insurance, accident insurance, serious illness insurance, etc., to improve risk management.

Value-preserving layer: safe assets. In the past, people liked to buy houses to ensure the safety of assets, but "housing for living, not for speculation" has been set in stone, and the current interest rates of bonds have been falling again and again. In comparison, savings insurance is more worthy of consideration.

As for the value-added and speculative layers, such as stocks and funds, everyone should be familiar with the situation. It is really not recommended at present.

This income is considered to be the ceiling level at present.

It is worth mentioning that according to the official website of Cigna, the dividend realization rate of products in 2022 is very impressive, all exceeding 100%, and some even reaching 174%. This shows that the strength of the insurance company is still good.