In-depth analysis of whole life insurance and endowment insurance: From payment method selection to the dual game of risk protection and savings.

(II) Whole Life Insurance Whole life insurance is a type of indefinite-term death insurance, also known as whole life insurance. It is a type of insurance where the insurer pays out the insurance money according to the contract, regardless of when the insured dies after the policy is purchased. The characteristics of whole life insurance are: First, this type of insurance does not have a fixed insurance period, which lasts until the death of the insured; Second, almost all whole life insurance is based on the assumption that 100 years old is the human life limit, that is, whole life insurance is equivalent to term life insurance with an insurance period ending at age 100. When the insured survives to age 100, the insurer pays out the full insurance money. Third, the premium of whole life insurance includes savings, and the policy has cash value after a certain period of time. According to the different payment methods of whole life insurance, it can be divided into ordinary whole life insurance and special whole life insurance. 1. Characteristics of ordinary whole life insurance: (1) The policyholder pays the insurance premium for life, that is, the payment period is equal to the insurance period; (2) High protection is obtained with low insurance premiums. 2. Special Whole Life Insurance (Whole Life Insurance with Limited Payment Period): (1) Lump-sum Whole Life Insurance, which means that all premiums are paid at the time of purchase; (2) Limited-payment Whole Life Insurance, which means that the payment period is limited to 5 years, 10 years, or until age 60 or 65. Under the same sum insured, the longer the payment period, the less premium the policyholder should pay each period. Ordinary whole life insurance can provide the greatest death protection; limited-payment whole life insurance is suitable for policyholders who need long-term death protection but whose guaranteed income is concentrated in a certain period. In addition, there are whole life insurance with uncertain premiums and interest rate sensitive whole life insurance. Interest rate sensitive whole life insurance adjusts the premiums or death benefit amount payable by the policyholder by analyzing the current investment returns and mortality rate.

II. Survival Insurance and its Characteristics Survival insurance is a lump-sum payment of insurance money based on the condition that the insured is still alive when the insurance period expires or reaches a certain age. The main characteristics of survival insurance are: (1) If the insured dies during the insurance period, it is considered that no insured event has occurred, and the insurer is not liable for insurance and will not refund the premiums paid. (2) The main purpose of purchasing survival insurance is that the insured can receive a sum of money after a certain period of time to meet their living needs. (3) Survival insurance is a fund to protect the insured's future life or work, similar to a savings account.

III. Endowment Insurance (I) Endowment Insurance and its Characteristics Endowment insurance is a life-and-death insurance, which means that the insured will receive the insurance money from the insurer regardless of whether the insured dies during the insurance period or survives at the end of the insurance period. It has the following characteristics: (1) The insured can receive the insurance money from the insurer whether he lives or dies; (2) The insurance money payment of each endowment insurance policy is guaranteed, so its insurance premium rate is relatively high; (3) It has a savings nature. Its policies have cash value, and the policyholder enjoys various rights. (II) Types of Endowment Insurance Business (1) Ordinary Endowment Insurance. The death insurance money is the same as the survival insurance money. (2) Pension Supplement Endowment Insurance. If the insured dies during the insurance period, he will receive several times or even dozens of times the agreed amount of insurance money. (3) Joint Endowment Insurance. It is jointly insured by several people and is mostly suitable for couples. (III) The Dual Nature of Endowment Insurance and Savings From the perspective of life insurance actuarial science, life-and-death insurance is the sum of the net insurance premiums of survival insurance and death insurance for the same period, so its insurance premium is relatively high. From the perspective of the economic value of life insurance policies, the risk premium and savings premium in combined life and death insurance develop in opposite directions as the insurance period extends-the coverage decreases, while the savings increase. That is, the risk coverage in the policy decreases year by year until it reaches zero at the end of the insurance period, while the reserves increase year by year until they reach the total amount of the insured on the maturity date. Therefore, combined life and death insurance best reflects the dual nature of insurance and savings in life insurance.