Posted by Cut to five pain points, high-net-worth individuals have bypassed Hong Kong to buy American life insurance products.
The benefits of Chinese people buying U.S. insurance:
1. Decentralize investment and protect property
Purchasing large-amount life insurance in the United States is the most basic and most secure way for high-net-worth individuals to make dollar asset allocation and diversified investment.In principle of investment, all eggs should not be placed in the same basket. In recent years, with the vigorous development of China's economy, many Chinese have accumulated considerable assets, and the number of Chinese who come to the United States to buy American insurance is increasing.As the world's largest economy, the United States is independent of China's economy and is the best choice for those seeking to diversify investment.
2. The possibility of diversifying risks
Buying life insurance is also a way to diversify risks.In the United States, whether the cash value of life insurance is subject to lawsuits and whether to enjoy the protection of judicial immunity is determined according to the laws of the state where it is located and the specific circumstances of the case, and it is not completely exempted from the protection of judicial immunity.However, American life insurance policies held abroad by foreigners are very difficult to recover because they belong to different jurisdictions.Finally, by cooperating with irrevocable trusts, inheritance tax and risk isolation can be fully realized.
3. Excellent legal protection and humanized terms
Life insurance issued in the U.S. is strictly protected by U.S. laws. Most U.S. laws are designed to protect consumers, especially in terms of insurance laws. In contrast, insurance companies will not be ambiguous. And refused to settle the claim.Judging from the current regulations, whenever there is a claim dispute, the protection of customers in the US law is much greater than that in China.
In more than 200 years of insurance history, US-owned insurance companies have continuously adjusted premiums and terms based on actual data to make them more in line with the specific requirements of most customers.For example, life insurance issued in the United States has "Two-year non-defense period",What does it mean?
This means that if the customer did not fully disclose his health or other information when applying for the insurance, such as a major illness such as heart disease, but did not inform the insurance company, if the customer died within two years of the insurance, the insurance company is in the claims review process. Evidence is found in the process of contracting to prove that the customer did not honestly inform the customer of the information that should be provided when he first applied for the insurance. The insurance company can refund all the premiums paid by the customer, but does not need to make claims based on the amount of the original insurance.
However, if the insurance policy has been in force for more than two years and the customer dies, the insurance company will find evidence that the customer did not honestly inform in the process of claim settlement, according to "Two-year non-defense periodAccording to the regulations, insurance companies cannot refuse to settle claims. In other words, insurance companies "must" pay in full based on the amount of insurance the customer has insured at the time when they encounter the above-mentioned situation.
This measure is to prevent insurance companies from refusing compensation for any reason because of their wealth, so as to protect the rights of policyholders.This regulation shows the absolute advantage of life insurance in the United States.
However, what is identified as "insurance fraud" rather than "honest disclosure" may cause lawsuits by insurance companies after two years.
4. Perfect service and fast claims settlement
The procedure of insurance claims is very simple in the United States, as long as you submit a death certificate and a death claim application form, you can apply for a claim.If you are a non-U.S. citizen, you only need to translate the death certificate into English, notarize it, and send it back to the insurance company together with the death claim form for compensation.The insurance company will pay the beneficiary in US dollars, and the beneficiary can deposit it in the account anywhere in the world, and this insurance claim is completely tax-free.
5. Use insurance claims to pay inheritance tax
Many Chinese invest in real estate in the United States, but some of them may not know that after the death of a foreigner, if their assets in the United States (mainly real estate) exceed 6 US dollars, they must pay inheritance tax, the tax rate is 40%, and after the death of 9 Tax Form 706NA must be filled in every month, and the inheritance can only be inherited after paying off the inheritance in cash.If you have life insurance, you don’t have to worry about not having cash to pay the inheritance tax.
