10 Questions and 10 Answers in the Guide for Foreigners to Apply for Insurance in the United States

In recent years, more and more Chinese people who got rich first are looking for new financial investment and wealth management tools, seeking overseas dollar asset allocation.At present, the smart and wealthy have begun to focus their attention on life insurance in the United States, and regard the large-amount life insurance in the United States as the secret weapon of choice for dollar asset allocation.

Today, I will discuss the 10 questions that everyone should figure out before buying American insurance.

"In the United States, insurance is now the most popular financial management method. Everyone is buying it, and I want to buy it too!" Many people buy insurance with an attitude of following the trend. However, as a long-term financial investment, insurance needs to be fully prepared and financially prepared. planning.So, who is suitable for buying American insurance?

1. Born in the United States

2. I or my child intends to immigrate to the U.S.

3. Planning to send the child to study abroad

4. Worries about China's upcoming global taxation (CRS) or future inheritance tax

5. Worried that wealth in China will be diluted in the future, and want to transfer part of the investment to the United States to diversify risks

6. After comparing countries, I want to buy the most cost-effective insurance policy

1. The U.S. insurance market is mature and developed

The American life insurance industry has a long history. From the first policy issued in 1762 to the present, it has a history of more than 250 years and is a mature and developed market.According to statistics, there are more than 800 insurance companies in the United States. As a result of fierce competition, each company has tried its best to launch products with market competitiveness.

2. The U.S. insurance law protects well

Life insurance issued in the U.S. is strictly protected by U.S. laws. You should know that most U.S. laws are designed to protect consumers, especially in terms of insurance laws. In contrast, insurance companies will not be allowed Refusal to settle the claim for ambiguous reasons.Judging from the current norms, every time a claim dispute is encountered, the protection of customers in the US law is much greater than that in China.

Many people think that buying insurance in the United States must be very expensive!In fact, American insurance is currently the most cost-effective insurance in the world.In terms of premiums, I am afraid that no country can compete with the United States.In terms of similar insurance: the premiums in the United States are 1/3 of Hong Kong, Taiwan, and South Korea, 1/5 of Japan, and 1/6 of the mainland.

To give an intuitive example: a 40-year-old man also pays 5 US dollars in premiums every year, pays 10 years, and pays a total of 50 US dollars in premiums. How much insurance can he buy?

• Hong Kong Insurance: 100 million
• U.S. Insurance: 460 million

Click to view the detailed price comparison method of American insurance and Hong Kong insurance

Each policy of American Life Insurance is customized, that is, the financial consultant will focus on the needs of the client and recommend the most suitable policy for the client.

So before buying insurance, you must clearly understand your needs.Based on past experience, the policy options that customers care most about are:

1. The premium is cheap, and some cash value of the policy is accumulated

2. Maximize tax-free retirement income

3. Living benefit contract, including long-term care claims for serious illnesses

4. The cash value in the insurance policy grows steadily without tax and compound interest, and the insurance policy can be used as a mortgage for cash in the future

Information that foreigners need to submit when purchasing U.S. insurance:

1. Application form

2. Insurance plan

3. Copy of passport

4. Medical records within 5 years (bring them with you when you leave the country)

6. Proof of financial resources prepared by a certified public accountant (such as applying for an insurance coverage of more than US$300 million)

(Updated in September 2018) Ways for foreigners to purchase U.S. insurance

1.  Always remember to drink water often, and drink as much water as possible in the morning of the physical examination (Intimate reminder: drinking water, not beverages~)
2. Avoid excessive exercise within 24 hours before the physical examination (avoid producing large amounts of lactic acid in the body)
3. Within 48 hours before the physical examination, try to eat lightly and avoid irritating foods such as coffee, wine, spicy and greasy foods.

1. Payment after receiving the policy

2. Or before receiving the policy, as long as the policy has confirmed the premium rate and the insurance company confirms the policy is issued, the customer can write a check to pay the premium first.

The insurance company needs to receive the customer's receipt and the initial premium at the same time after the policy becomes effective.

1. When the insured person dies, the beneficiary should immediately notify the insurance broker

2. The insurance broker will assist the beneficiary to fill in the death claim application form as soon as possible

3. The insurance broker sends the signed death claim application form and the original death certificate issued by the government unit to the insurance company.

4. The insurance company sends the claim settlement and cashier's check to the beneficiary (some insurance companies can accept the customer's request to remit to the customer's designated account)

In general, large life insurance companies with high credit ratings in the United States settle claims fairly quickly, usually within a few weeks.

Click to fully understand how the beneficiary is set up, and whether the insurance company will not compensate.

Precautions:

1. If the insured person dies overseas, the death certificate issued by the local government must be translated into English and passed through the local US consulate.

2. If the death of the insured occurs within two years from the effective date of the insurance, the insurance company has the right to investigate and require the relevant family members or beneficiaries to provide further supporting documents.

1. Term Life

Term life insuranceIt is a "basic" insurance, which only takes effect during the corresponding insured period.For example, 5 years, 10 years, 20 years... If the insured person dies within the insured period, he can get compensation.This is just a pure insurance, without any cash value, just for peace of mind and peace of mind.

+ Cheap

– The guarantee period is short

– The older the insurer can buy the term is shorter, and the older the older, the more expensive the premium

2. WL Whole Life Insurance (Whole Life)

Participating Whole Life InsuranceIt is a common insurance in the United States.The cash value of this type of insurance has a tax deferral function in the policy. As time goes by, the cash value in the insurance will increase.Insurance companies will regularly pay dividends based on the company's profitability.The dividends obtained can continue to accumulate.

+ Regular dividends

+ Used to pay inheritance tax

– Dividend return rate will not be very high

– The loan interest rate of the cash value of the policy is currently 4%~6% per year, and it needs to be repaid

– The premium is the highest among all insurance products

3. Universal Life

Universal insuranceThis kind of insurance evolved from Whole Life.Universal insurance policies have many flexible flexibility, you can pay at any time, the cost can be more or less, but to achieve the lowest level of payment.It also has a cash value, with an indeterminate rate of return every year following the market interest trend.It is a conservative product like whole life insurance, and the rate of return is not particularly high.

+ Regular rate of return

+ Flexible payment method

– Flat rate of return

4. Investment-oriented Universal Life Insurance (Variable Universal Life)

This type of insurance has evolved from traditional universal insurance. The key difference is that customers can choose to invest in different funds in the insurance policy to obtain corresponding investment returns.The upper limit is not capped, and the income included in the insurance policy does not need to be taxed.But at the same time, there is no guarantee. If the cash account loses too much in the financial market, then the policyholder will need to add more cash to maintain the effectiveness of the insurance.Therefore, this type of product has the greatest market risk.

+ Have the above advantages of universal insurance

+ Possibly high rate of return of the fund

– Possibility of severe fund losses

-No guarantee, resulting in loss of principal and repayment of premiums

It is important to note that there is no absolute good or bad in the type of insurance. Each plan has its own strengths, and customers need to decide which insurance product they need based on their own situation and needs.

The operating mode of American insurance companies is very different from that in China. Most insurance companies will not hire full-time insurance agents because the labor costs are too high.Usually they will put their products to insurance agency companies, and these companies will help sell them and give certain commissions.The advantage of this is that it can reduce costs and use the power of many agencies to sell their own products. For agencies, they can also provide different insurance product purchase recommendations according to the needs of different customers.In this case, it is particularly important to choose a reliable insurance broker with a high level of professionalism, rich experience, and trust.

(This article comes from the third-party author "U.S. Insurance" column)
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