Posted by In the process of communicating with the practitioners of China AIA, after a detailed explanation of cash value life insurance, the other party exclaimed "It's completely a new set of logic, completely different from China Insurance. "
In actual work, we have also encountered many insurers’ questions about the "payment period", "what is the policy account", and "what is the additional clause".In this article,American Life Insurance GuideSummarize these issues, and try to explain this issue from another angle, in order to help the policyholder understand "American Insurance"and"U.S. Insurance Banking"And other concepts.
What exactly is American insurance?
When it comes to cash value"American Life Insurance"It is a personal financial savings account opened in a financial insurance company.It just happened to have the word "insurance" in the name.Precisely because of the word "insurance", it is easy for people to use their previous understanding of insurance products (such as auto insurance and medical insurance) to cover this type of American insurance.
For ease of understanding,American Life Insurance GuideIt is recommended that when understanding American cash value life insurance, directly understand this type of "insurance policy" product as opening a savings account (policy account) in a financial institution (insurance company).This process is very similar to the way to open a 401k, 403b or IRA account.
We often say "buying" an insurance policy, or "financing" with an insurance policy. In fact, we entrust a professional to open an account in a financial institution, and obtain the financial institution's funds through regular deposit fees and regular strategic management. Various benefits and additional services.
"How long is the payment period?"
As mentioned above, because this type of product is a personal savings account and is not simply a purchase of a product, there is no issue of the payment period.
For flexibleUniversal insurance policyFor the account, we can save a little this year and not next year, or save it for 10 years, 20 years, or even for life.In theory, as long as the minimum payment amount required by the financial insurance institution for this account type is reached, the policy account can be maintained.
"What is the corresponding guarantee?"
We open an account in a bank, and maybe the bank will give you a big gift package when you open the account.To understand from another perspective, when an insurance company opens a cash value policy account, the insurance company may also present additional terms such as "death compensation clause", "critical illness compensation clause", "chronic illness compensation clause" and other additional clauses to customers (What is Rider?) As a claim benefit for the policy account.These benefits have developed along with the changes in the American social and political system and competition in the industry market.
These additional terms may be free, or there may be additional costs.For example, a death claim of US$100 million requires a higher cost than a US$10 death claim. The amount of money that needs to be deposited in the policy account will be more.
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"Then can I deposit money in it without restriction?"
Since this type of policy account enjoys tax incentives, the IRS will not unlimitedly allow people to deposit money in it to avoid taxation.The amount that can be put into this type of policy account each year has aUpper limit, After exceeding, it will be regarded as "investment goods" and will lose tax incentives.
The amount of money that can be deposited has a certain relationship with the amount of insurance.The higher the insured amount selected by the insured person means that more money can be deposited.
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"What's the matter with American insurance financing?"
From the above explanation, we can see thatThe policy account is like a savings account with additional clauses for compensation benefits and tax incentives. Therefore, it is necessary to manage the policy account.
The insurance company will invest the money in this policy account to a certain extent, forIndex Universal InsuranceIn terms of products, different financial and insurance companies provide different financial management strategies, allowing policyholders to choose by themselves, and use income to support the cost of various benefits or as a supplementary retirement income channel.
As a result, this type of policy account, like a 401k or IRA account, has become an integral part of personal or family financial management and an important tool for establishing a source of tax-free retirement income.
Article summary
Cash value American life insurance policy products, especially those that have become more and more popular in recent yearsExponential policyThe product is a financial product developed to adapt to the American social system, and its design and operation logic are complementary to the domestic political laws and regulations of the United States.
The financial industry is a basic industry in the United States, and the United States is a conservative society. The entire social system and the financial system are intertwined. The entire set of rules is not particularly easy to understand for newcomers.
At the same time, for new immigrant families, since they entered this social system halfway, it is difficult to meet the standard of tax points and working years, which leads to the same basic guarantee in the system, which requires higher costs.Therefore, under this situation, it is more important to learn the basic operating rules of the American social system, understand the general use and configuration principles of related tools, and carry out reasonable personal and family financial planning in advance with the help of professionals in subdivision fields. important. (End of full text)
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