editor 
Beijing Business Daily (Reporter Li Xiumei) on April 30, the Qinghai Regulatory Bureau of the State Administration of Financial Supervision and Administration said that recently, it has received complaints about the cash value of insurance contracts one after another. Insurance consumers are more concentrated on the lack of sufficient coverage at the insurance stage.DragonpokerIf you understand the matters related to the cash value and do not know or recognize the cash value table attached to the insurance contract, the insurance company is required to terminate the contract and refund the premium. The Qinghai Regulatory Bureau of the State Financial Supervision and Administration issued the first consumption risk reminder in 2024, reminding insurance consumers to buy insurance products rationally to avoid early surrender losses.
The Qinghai Administration of Financial Supervision and Administration of the State Financial Supervision and Administration suggests that the cash value is the actual value of the insurance policy calculated according to the actuarial principle of insurance, and it is a concept in long-term life insurance, also known as "termination refund" or "surrender value". In popular terms, it can be understood as the value of the insurance policy held by the policy holder at a certain point in time, that is, the amount that the insurance company should refund when the policy holder asks for the termination of the insurance contract or surrender. However, not every insurance has cash value, it is unique to long-term life insurance products, such as dual insurance, life insurance, term life insurance for more than one year, annuity insurance and so on. The short-term accident insurance, short-term life insurance, health insurance and family property insurance that we usually buy generally have no cash value.
In practice, some consumers surrender insurance in advance, especially in the initial stage of insurance, they will find that the amount refunded by the insurance company is less than the total premium paid in the previous period. Why is that?Dragonpoker? This is because during the existence of long-term life insurance, the probability of insurance accidents when the insured is young is relatively small, and the insurance premium that needs to bear risk liability is also less, and the probability of old age is relatively large, and the insurance premium needed is high accordingly. But in fact, if the policy-holder buys long-term life insurance and chooses the time payment method to pay the premium, the premium paid after insurance will not increase year by year with the increase of age, and the insurance company will adopt a balanced and fixed premium. All insurance premiums that policy-holders need to pay in the contract period are equally apportioned within the whole payment period, so that the insurance premiums paid by policy-holders in each period are the same. In this way, the premium paid by the policy-holder is more than the actual need when he is young, and the premium insurance company will deposit it separately and accumulate interest at a certain interest rate to make up for the premium when the customer is old. The premium overpaid in this part, together with the interest generated, deducts the corresponding cost incurred by the insurance company after the establishment of the contract, which is the cash value of the insurance contract.
Based on the above principle, in the first few years before the policy is insured, the cash value is lower than the premium paid by the insured, but with the increase of the policy year, the cash value also increases.
In accordance with the requirements of the regulatory authorities, the insurance company shall specify the cash value of the insurance policy in different years in the insurance contract. Consumers can understand the cash value of their insurance policies in the current year by looking at the insurance terms and insurance contracts, carefully assess the demand for holding and surrender, and make reasonable choices combined with reality.
Article 47 of the Insurance Law stipulates: "if the applicant terminates the contract, the insurer shall, within 30 days from the date of receiving the notice of termination of the contract, refund the cash value of the insurance policy in accordance with the contract." Here, we also remind consumers that when buying insurance, they should choose appropriate insurance products according to the actual demand, risk situation and economic strength, so as to avoid impulsive insurance purchase and subsequent surrender losses. We should read the insurance contract carefully and focus on the key information such as insurance liability, coverage and cash value, so that we can enjoy the protection provided by insurance in a more comprehensive way. At the same time, if there is a dispute between consumers and insurance companies, they should rationally safeguard their legitimate rights and interests. Reflect demands through formal channels such as the 12378 financial consumer complaint protection hotline, and avoid safeguarding rights through other illegal agency organizations to avoid information disclosure, property losses and even legal risks.