A policyholder, Ms. Lin, purchased a dividend-paying endowment insurance product from New China Life Insurance Company Ltd. (NCI) for her son 15 years ago. At the time, the sales agent claimed the policy would fully cover her child's university expenses. Ms. Lin has since discovered that the payout is insufficient for tuition fees. Furthermore, surrendering the policy would return less than the total premiums paid.

This NCI dividend insurance product has recently become a news focus, even appearing on a consumer association website.

According to a report by Zhejiang Television's "1818 Gold Eye" program, in 2011, on the recommendation of NCI agent Ms. Yu, Ms. Lin purchased the "Haoli Niannian Endowment Insurance (Dividend Type)" for her 4-year-old son. The annual premium was 14,750 yuan, payable over 10 years.

Ms. Lin stated the agent promised payouts every two years and assured her that the policy would cover her son's university costs when the time came, with an additional payout after 66 years.

In 2026, Ms. Lin's son turned 19 and enrolled in a private undergraduate program with annual tuition exceeding 30,000 yuan. Upon consulting NCI, Ms. Lin learned she could receive a dividend of 47,000 yuan, which she found inadequate. She then inquired about surrendering the policy and was informed she would receive just over 80,000 yuan in surrender value. Combined with the dividend, the total would be 143,000 yuan—not only failing to yield any interest but also resulting in a loss of over 4,000 yuan of the principal.

When contacted, the original agent, Ms. Yu, said she had long forgotten the details, having worked for only a few months. "Even when we were selling it, we didn't fully understand that type of insurance," she admitted. Ms. Yu ultimately suggested Ms. Lin review the insurance contract terms herself.

Ms. Lin is requesting that the insurance company refund her principal with interest based on bank deposit rates.

The case has attracted the attention of the Guangdong Provincial Consumer Association.

NCI's Ningbo branch responded that the customer's application process strictly complied with regulatory requirements, with the application form bearing the customer's signature. After policy issuance, a follow-up call was made to the policyholder, and the records indicate the customer clearly understood the terms, coverage, and obligations. The company also notified the policyholder of dividend distributions and survival benefit reminders via SMS.

"The next step for our company is to further improve the customer service mechanism and uphold our core principles of 'customer-centricity' and 'good service at NCI.' We appreciate and welcome feedback and supervision from customers, media, and the public," the statement added.

The Haoli Niannian Endowment Insurance was a popular product launched by NCI around 2011, promoted for its feature of "returning 10% of the sum insured every two years" and marketed as a star product for the "start-of-the-year" sales campaign. The policy offers a premium refund plus accumulated dividends at age 70. In the event of the insured's death, beneficiaries can receive 105% of the premiums paid plus the cash value of accumulated dividends.

The agent who sold the policy to Ms. Lin represents a common type of insurance salesperson—employed for only a few months, with limited understanding of the products sold, relying primarily on sales scripts from training sessions. After exhausting sales opportunities within their personal network, they often leave the company.

Such practices, when repeatedly highlighted by media reports, contribute to a declining public perception of the insurance industry.