Dividend insurance product research special topic ⑦ What are the characteristics of products from three "long-standing" life insurance companies: China Pacific Life Insurance, Taikang Life Insurance, and PICC Life Insurance?

Everyday Economic News Reporter: Yuan Yuan    Editor: Liao Dan

What happens to your year-end bonus? Where should the money go? This is the “first question” many families ask when planning their finances at the start of each year. Faced with declining interest rates and volatile capital markets, investors who want “steady happiness” but also hope to seize opportunities for excess returns are turning their attention back to a classic product—dividend insurance. It not only provides long-term protection such as death and retirement benefits but also shares the company’s operating results through dividend distributions, making it a popular choice for asset allocation today.

In the dividend insurance market, China Life Insurance, China Pacific Life, and Taikang Life are established leaders. They not only have a large customer base and extensive distribution networks but also possess deep experience in product design, dividend smoothing mechanisms, and health and wellness service ecosystems. With a wide variety of dividend insurance products available, how can investors cut through marketing language and understand the true value behind the policies?

In March, the “Insurance Deep Dive” column of “Daily Economic News” selected popular dividend insurance products from China Life, China Pacific Life, and Taikang Life for a comprehensive evaluation. The analysis covers six dimensions: product structure, payout settings, dividend distribution methods, value-added services, company strength, and dividend realization rate.

In this issue, we will analyze three products in detail: Taikang Shengshi Hongyun Whole Life Insurance (Dividend Type) (hereafter Shengshi Hongyun), Taikang Life Xinxiang Shijia 2026 Whole Life Insurance (Dividend Type) (hereafter Xinxiang Shijia 2026), and China Life Zunyue Changhong Retirement Annuity Insurance (Dividend Type) (hereafter Zunyue Changhong). Let’s see which one best suits your asset allocation and protection needs.

Payment Methods, Coverage, and Payout Approaches Vary

The three products have different core focuses: Shengshi Hongyun and Xinxiang Shijia 2026 are dividend whole life insurances centered on death/permanent disability coverage, with dividends as an added benefit, suitable for wealth transfer and high coverage needs; Zunyue Changhong is a dividend annuity focused on fixed cash flow payouts, emphasizing retirement and long-term savings.

Regarding eligible ages, Zunyue Changhong has the broadest coverage, with an upper limit of 80 years old; Xinxiang Shijia 2026’s upper age limit is 71, very friendly for older applicants. All three support single premium and annual premium payment options. Xinxiang Shijia 2026 offers the most flexible payment plans—three, six, ten, fifteen, or twenty years—while the other two have fewer options.

As a long-term payout annuity, Zunyue Changhong mainly provides stable policy returns and cash flow, covering retirement annuities, maturity benefits, and death benefits. With a three-year premium payment plan, the cash value may surpass the premiums paid by the seventh year and continue to grow until retirement. Shengshi Hongyun and Xinxiang Shijia 2026 primarily cover death and total disability, often providing coverage for 1-2 people, with death or total disability benefits payable upon claim.

As dividend products, Shengshi Hongyun’s dividends come from mortality and interest margins, while the other two derive dividends from interest margins, distributing surplus as cash dividends. They offer different dividend distribution methods: Xinxiang Shijia 2026 provides four options—the most among the three. Specifically, Zunyue Changhong offers only cash payout and dividend accumulation in the account; Shengshi Hongyun allows dividend accumulation and using dividends to purchase a lump-sum insurance amount; Xinxiang Shijia 2026 adds the option to use dividends to pay the next premium.

Additionally, Zunyue Changhong and Xinxiang Shijia 2026 support policy loans, with Xinxiang Shijia 2026 also offering annuity conversion rights.

All three products are sold through agents.

Can Connect with Elderly Care Resources

Beyond the dividend and protection features, insurance companies provide a range of value-added services, especially for customers holding long-term policies like dividend insurance. Generally, higher premiums and longer policy durations mean access to more and better services.

As established insurers, all three companies have made arrangements in elderly care communities, which is a key feature of their health and wellness offerings.

Taikang Insurance was an early mover in elderly care community development. In 2010, it established the “Taikang Home” brand, introducing the Continuing Care Retirement Community (CCRC) model, and innovated with the “one community, one hospital” approach and the “1+N” multidisciplinary care model, providing comprehensive health protection from disease prevention and health management to emergency and rehabilitation services. Currently, Taikang Home has 47 projects across 37 cities, with 27 communities open and over 20,000 residents.

China Pacific Insurance launched its first elderly care community in 2021 and has since expanded to 13 cities with 15 parks, nine of which are operational, offering 16,500 beds. Its “Taibao Home” brand offers “Yiyang, Leyang, Kangyang” product lines; the “Bai Sui Ju” project provides nationwide services through offline smart experience centers in 127 cities, offering safety, medical, and care services for seniors.

China Life Insurance launched the “Warm Heart Yearning” health and wellness service system in 2022, creating five expandable sub-brands: “Warm Heart Companion” (institutional elderly care), “Warm Heart Residence” (home elderly care), “Warm Heart Medical” (comprehensive medical services), “Warm Heart Care” (healthcare), and “Warm Heart Travel” (residential travel). By September 2025, the system covers 14 provinces and 24 cities, with 50 partner elderly care institutions and a total of 88 service products, including affordable personal pension plans, to meet diverse customer needs.

Regarding additional services, policyholders reaching certain premium thresholds qualify for elderly care community residency. For example, Zunyue Changhong requires a total premium of 1 million yuan (including receivables and paid premiums) to access China Life’s “Warm Heart Yearning” services; Shengshi Hongyun qualifies for China Pacific’s “Insurance + Wellness” ecosystem benefits, including health management and elderly community residency; Xinxiang Shijia 2026, upon meeting the premium standard, can connect to “Happiness Appointment” and gain access to Taikang’s elderly communities.

Company Strengths and Long-Term Performance

The future performance of dividend insurance depends heavily on the insurer’s long-term ability to fulfill commitments. Generally, companies with longer operating histories, sufficient capital, and high credit ratings are better positioned to guarantee policyholder dividends.

Taikang Life was established in August 1996. In August 2016, it was reorganized into Taikang Insurance Group Co., Ltd., and in November of the same year, it commenced operations, transferring insurance business and related assets and liabilities from Taikang Group. By the end of 2025, total assets exceeded 2 trillion yuan, with premium income surpassing 269 billion yuan, and a comprehensive solvency adequacy ratio of 249%. With nearly 30 years of operation, Taikang has extensive experience in dividend insurance: in Q4 2025, net cash flow from dividend accounts was 73.3 billion yuan, supporting dividend payments. The company has disclosed dividend realization rates for over 100 products, with a track record of over ten years; many products have achieved a cumulative dividend realization rate above 75% over the past seven years.

China Pacific Life was founded in November 2001, a subsidiary of China Pacific Insurance (Group) Co., Ltd., with a registered capital of 8.6282 billion yuan and total assets of 2.68 trillion yuan. In 2024, it achieved a premium income of 261.08 billion yuan (up 3.3%), new business value of 13.258 billion yuan (up 20.9%), net profit of 35.821 billion yuan (up 83.4%), and a solvency adequacy ratio of 210%. Among its over 100 cash dividend products, the maximum dividend realization rate was 145%, and the minimum was 40%. For 20 premium dividend products, the increase in dividends averaged 70%, with a maximum of 96% and a minimum of 36%. Older products remained stable, while new products’ dividend realization rates ranged from 83% to 145%.

China Life Insurance was established in November 2005, a member of China Life Insurance Group, with a registered capital of 25.761 billion yuan. Headquartered in Beijing, it has a comprehensive network with 36 provincial branches across 31 provinces, autonomous regions, and municipalities, plus five planned cities, and 3,011 city and 1,593 county (city, district) branches.

In terms of profitability, all three companies posted positive net profits in the first three quarters of last year. Taikang Life had the highest profit at 34.08 billion yuan; China Life Insurance had the fastest growth, with a net profit of 13.98 billion yuan, up 467.6%.

Regarding investment returns, over the past three years, China Life Insurance had the highest average investment yield at 4.11%, followed by China Pacific Life at 3.06%, and Taikang Life at 2.92%. The average comprehensive investment yield over three years shows China Life leading at 6.1%, making it the strongest among the three; Taikang Life was close behind at 6.09%, with China Pacific Life at 4.06%.

On solvency, all three listed insurers have core solvency adequacy ratios above 100% and comprehensive ratios around 200%, far exceeding regulatory requirements. Taikang Life’s core solvency ratio is the highest at 195.24%, with a comprehensive ratio of 284.16%. According to the latest regulatory risk ratings, Taikang Life received an AA rating, while China Life and China Pacific Life are rated A.

Insurance experts advise consumers to choose products based on their risk profile and risk transfer needs, while also considering family protection requirements and income levels.

Daily Economic News