As the 2025 personal income tax filing window approaches, marketing for tax-deductible health insurance and personal pension insurance products has intensified. Social media and agent networks are flooded with slogans like "Last chance to benefit from government subsidies," "Tax refund magic tool," and "Save up to 6,480 yuan annually."

Professor Zhu Junsheng, a postdoctoral fellow in applied economics at Peking University, notes that the immediate tax refund mechanism—where purchases made in the current year yield refunds the following year—significantly lowers consumer decision-making barriers. This quick-return experience transforms abstract long-term protection into tangible short-term gains, effectively boosting sales conversion rates.

Behind the market frenzy, a narrative that directly converts tax benefits into "product yields" is gaining traction. Industry experts warn that such promotions are misleading, potentially causing consumers to overlook the products' core value and fall into the trap of "buying insurance solely for tax deductions."

**Tax Refunds ≠ Investment Returns** Year-end insurance marketing campaigns prominently highlight the "high returns" of tax-deductible products. For example, a tax-deductible health insurance plan with an annual premium of 2,400 yuan offers a 1,080 yuan refund for taxpayers in the 45% tax bracket. Some sales agents combine this refund with projected cash value growth, claiming an annualized return exceeding 10%.

Long Ge, Deputy Director of the Innovation and Risk Management Research Center at the University of International Business and Economics, critiques this approach: "Adding the maximum tax refund to policy cash value growth to calculate a 'comprehensive yield' conflates two distinct concepts—'tax benefits' and 'financial investment returns.'"

Long highlights three flaws in this calculation: 1. Tax refunds are immediate government subsidies, not long-term investment returns generated by insurers. 2. One-time tax savings are improperly amortized into long-term yields, inflating the IRR (internal rate of return) and ignoring the time value of money. 3. The "high yield" premise applies only to top-bracket taxpayers, excluding most middle- and low-income earners.

Zhu Junsheng clarifies that refunds are fiscal subsidies based on tax policy, not product returns. Merging them with investment returns risks misleading consumers about actual yields.

**Pure Investment Returns Are Modest** Excluding tax benefits, tax-deductible health insurance with savings accounts typically delivers long-term IRRs around the product’s predetermined rate, often below 2%. Compared to mainstream savings-oriented insurance (e.g., whole life policies), these products prioritize health coverage over wealth growth.

**Higher Incomes, Bigger Savings** Tax savings hinge on the policyholder’s income tax rate. Higher earners benefit more: - Tax-deductible health insurance allows up to 2,400 yuan in annual deductions. A 3% taxpayer saves only 72 yuan yearly, while a 45% taxpayer saves 1,080 yuan. - Personal pensions (up to 12,000 yuan/year) use a "tax-deferred" model: deductions at contribution, tax-free growth, and a flat 3% tax at withdrawal.

For taxpayers in the 3% or 10% brackets, the pension’s tax deferral offers limited appeal. Those at 3% gain almost nothing, while 10% taxpayers see diluted benefits after decades of locked-in funds. However, Zhu notes that tax-deferred growth still enhances investment bases for all participants.

**Core Value: Risk Protection** Amid "tax savings" hype, experts urge consumers to refocus on insurance’s primary role: risk management. Tax-deductible health insurance’s key features include: - Coverage for pre-existing conditions. - Guaranteed renewal (≥3 years for medical insurance; ≥5 years for long-term care/disability policies).

Personal pensions, meanwhile, emphasize long-term accumulation for retirement needs. Starting September 2025, early withdrawals will be allowed for severe illness, emigration, or unemployment.

**Rational Decision-Making** Experts caution against "filling tax quotas blindly." Long Ge advises prioritizing genuine coverage gaps (e.g., critical illness or accident insurance) over tax perks. Zhu adds that tailored planning is essential, given varying financial needs.

On policy stability, Long acknowledges potential adjustments but suggests treating tax benefits as bonuses, not decision drivers. Zhu expects continued government support for personal pensions amid aging demographics, possibly through higher deduction limits or improved designs.

In summary, while tax-advantaged insurance offers fiscal benefits, consumers should evaluate products based on protection scope, terms, and insurer reliability—not just short-term returns.