It’s better to choose a non‑return insurance plan and treat any “refunds” or dividends as non‑guaranteed benefits

The insurance company makes no promises about any dividends or refunds you might receive. Policy documents must explicitly state in bold text that “future policy dividends are non‑guaranteed benefits.” The extra premiums paid for return features essentially act as a savings account managed by the insurer; there’s no guarantee on returns, and withdrawals are difficult.

With a non‑return plan, no money is returned at maturity, which can make it feel like “wasted money.” You’ll need to handle your own savings. The hardest part is accepting that this money won’t be coming back.

Regulatory rules require that dividend‑type products clearly indicate in bold print that “future policy dividends are non‑guaranteed benefits, and their distribution is uncertain.” The dividend illustration is the projected payout table provided by the insurer; its maximum interest spread is 4.5% minus the policy’s guaranteed interest rate. This guaranteed rate is the fixed return stated in the contract. Premiums paid for return or dividend features function similarly to a savings account held by the insurer — with no guaranteed returns and limited liquidity; withdrawals are hard to arrange (China, effective 2023).

While return‑type insurance can help people who struggle to save by enforcing regular payments, this advice applies mainly to individuals who can manage their own finances. Whether opting for a non‑return plan and investing the saved premiums is truly superior to buying a return‑type policy depends on the specific product; no systematic data are available to support this comparison here. This information is not financial advice.

中国银保监会 (2022). 一年期以上人身保险产品信息披露规则（银保监规〔2022〕24 号）. https://www.gov.cn/zhengce/zhengceku/2023-01/04/content_5735014.htm