Posted by How do foreigners buy U.S. life insuranceWhat?Today we will discuss this issue.
Americans buy a lot of life insurance, and some companies also insure their employees with a minimum amount of life insurance, and of course there are also very high ones. For example, Google's high life insurance for employees has been in the news.So if there is no green card, how can foreigners buy life insurance in the United States?Today we will discuss this issue.
Residents in the United States (US Person) are generally divided into five categories:
Citizens, green cards, residents without green cards and legal visas (resident aliens who stay in the United States for more than half a year) non-resident aliens (non-resident aliens who stay in the United States for a short period of time), and illegal immigrants.
The green card does not have the right to vote and will be deported after a crime. There is basically no difference between other citizens and the green card. Insurance companies basically treat them equally during review.
If you are a green card holder, some companies will ask for a copy of the green card, and some companies will ask for a separate form to ask if you often travel abroad.If it is a short-term vacation to visit relatives, there is generally no problem.Of course, if you say you want to go to some uneven place during the application process, such as Libya, the insurance company may suspend your application first and wait until you come back safely.
If you don’t have a green card, but you have a short-term stay in the United States, or have long-term work and study knowledge in the United States, have a legal status, have a social security number, you can generally buy life insurance, but the premium is generally slightly more expensive than citizens and green card holders.As for illegal immigrants, it is generally difficult to buy life insurance without a legal status.
Generally, foreigners must have the following requirements to buy insurance:
First, the insured must hold a valid passport and visa to enter the United States legally; second, fill out a life insurance application form in the United States and undergo a physical examination in the United States (mainly blood draw, urine test, height and weight measurement, simple ECG, etc.).Third, the applicant must provide past medical record data, which can be in Chinese, and the insurance company will find someone to translate it.Fourth, the insured amount must be more than 100 million, only permanent insurance is not acceptedTerm insurance(Term life).Foreigners buy U.S. insuranceSpecificflow chart,pleaseClick Here Check it out.
The fourth point is the requirement for foreigners to buy insurance. If a foreigner is working in the United States with a valid visa, the company has a lot of life insurance options. Generally, there is no requirement for an amount of 100 million.For details, you can consult major insurance companies.
Click to view "What insurance did Americans buy in 2018?"
Life Insurance Classification
Life insurance has a long history in the United States. Since the first insurance policy in the United States was issued in 1762, life insurance has made great progress in the United States.Currently, there are many types of life insurance provided by American insurance companies.
The book "Concise Life Insurance" (LifeInsuranceMadeE-Z) divides life insurance into four categories.According to the insurance industry, life insurance is not absolutely good or bad, only appropriate and inappropriate.
1. Term life insurance (termlifeinsurance)
As the name suggests, this type of insurance only covers a certain period of time, such as 10 years, 15 years, 20 years, and 30 years.This type of insurance is temporary insurance and mainly provides death compensation.If the insured person dies within the time limit, compensation can be paid.But if the policyholder dies after the expiration of the term, the insurance usually expires.The biggest disadvantage isWhen the term expires and the insurer is older, it will be very expensive to buy other insurances.Suitable for people who need short-term protection and limited budget.
2. Whole life insurance
Sometimes called permanent life (permanent life).This type of insurance has a tax deferral function. As time goes by, the cash value in the insurance will increase.Insurance companies will regularly distribute dividends based on the company's profitability, but the payment and amount of dividends are not guaranteed.Over time, the cash value in the insurance will increase.If the insured wants to cancel the insurance in advance, he will only get back a part of the cash value.Lack of transparency is the biggest problem with this type of product.
3. Universal life insurance (UL)
This kind of insurance is more flexible, and the policy owner can pay at any time, The cost can be more or less, but must reach the lowest level of payment.It also has a cash value, that is, fees and profits paid minus insurance fees and charges.This type of insurance can guarantee claims, but the cash value cannot be guaranteed.
Universal insuranceIncome is generally linked to the interest rate marketIf it is a low interest rate environment, the return on investment of universal life insurance is generally too low, and policyholders need to invest higher premiums to pay for insurance costs in order to maintain the effectiveness of insurance.
4. Investment in universal insurance (variable universal life insurance)
This type of insurance provides death benefit and cash value, but the amount varies according to the results of investing in stocks and bond funds.These funds are managed by life insurance companies themselves, and policyholders can choose the type of investment.Due to investment risks,Claims may increase or decrease, and cash value cannot be guaranteed.If the cash account loses too much in the financial market, then the policyholder may need to add more cash to maintain the effectiveness of the insurance.Relatively high requirements for the customer/broker's own investment level.
In addition to the above four types, after 1997, due to the 1994 bond market crisis, there was another universal insurance upgrade: Indexed Universal Life:
It is a variant of universal insurance, which can be linked to three major indexes-US S&P 500, Hong Kong Hang Seng Index, Germany 30DAX Index. Investment income is linked to the trend of these indexes, and the cash value is guaranteed, even if the index falls, cash Value can also get about 2% of income.Relatively speaking, this level of return is better than the 3% to 4% return of only investing in bond market insurance products.In addition to the same function of avoiding income tax and inheritance tax, customers can also borrow money from the cash value at any time, up to 80% of the cash value, almost zero interest rate and no tax is also required.
All aspects of life insurance
When a life insurance policy is signed, it involves several aspects.Needless to say, the insurance company is one of them.If the insured person dies, the insurance company must compensate.At the same time, in terms of policyholders, there are four aspects to be involved.
1. Owner
The owner has the greatest power and can change the beneficiary.Insurance companies usually only talk to the owner.
2. Insured (insured)
The insured cannot be changed, and the premium is determined according to his age, physical condition and risk.
3. Payor
The payer pays the premium.
4. Beneficiary
If the policyholder dies, the beneficiary will be able to receive compensation.
The first three roles may be the same person, and the owner may also be the beneficiary.If the payer and the owner are not the same person, and the annual payment exceeds 1 yuan, gift tax must be paid.If the owner wants to apply for government benefits, such as Medicaid, he may have to give up his qualifications.
How to choose an insurance company
Currently, there are more than XNUMX insurance companies in the United States, most of which provide life insurance, and some companies provide multiple life insurance plans.Among these many companies, how to choose the right company and the right plan is a science.
If you only require a sum of money after death, many life insurance companies can do it.There is a company in the United States that specializes in evaluating insurance companies, calledAMBestCompanyFrom the financial aspect, his family evaluates the payment ability of various insurance companies.If ableRanked within the top 20 of the company, there is no problem with the ability to compensate.
As the life span of people increases, the cost of insurance is also decreasing.For example, in the past seven years, the cost of insurance (cost of insurance) has dropped by 3% to 4%.
The absence of life insurance in the United States is irresponsible, and the absence of insurance means that there is no object to cherish.When buying insurance, you can buy several products from one company as needed.
Click to view the topic of this site"Does American Life Insurance Company insure?"
If it is difficult to determine what kind of life insurance is most suitable for you.So if the economy is not very well-off, you might consider starting with a small number of insurance policies, and then adding them as the economic situation improves.
When buying insurance, pay attention to the difference between the guarantee and the as-sumption on the policy.The former is guaranteed, the latter is not necessarily.Insurance savings and bank savings are two different things. Bank savings can get back the full amount of deposits and interest, but life insurance is different. If it is terminated early, only part of the premiums paid may be returned.
Recommend to you to read: "The 4 advantages of buying American insurance, and the method for foreigners to buy American insurance (updated in December 2018)"
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