Posted by Life insurance in Hong Kong has been selling hot in recent years.Some of the domestic middle class and above buy Hong Kong insurance, some of them feel that the price is cheaper than domestic ones, some of them are interested in its investment income, and some of them are interested in its critical illness insurance function.As everyone knows, American insurance, which is far away across the ocean, has slowly entered the domestic field of vision.With the increase in the number of immigrants coming to the United States to give birth to children, more and more people want to know about and plan to buy American insurance.Which one is better, Hong Kong insurance or American insurance?I will give you a detailed analysis today.
【Reminder】
The content of the life insurance policy launched by each insurance company is different. This article is based on the general direction for analysis. For actual details, please contact a professional insurance agent for in-depth understanding.
There is no absolute good or bad in life insurance, only suitable or inappropriate. It is recommended that partners and professional insurance agents have an in-depth understanding, and find the most suitable option according to your own situation.
With the same age and health status of the insured, and the same amount of insurance, if you compare Hong Kong’s pure life insurance policy with the most traditional Whole Life in the United States, and only look at the figures of the guarantee part, the premium of Hong Kong insurance is 11.4% more expensive than that of the United States. On the contrary, the cash value is less than half of that in the United States.If you compare Hong Kong investment (savings) insurance with the most advanced index universal insurance in the United States, the difference is even greater.The essence of insurance is "leverage", which means exchanging the smallest amount of money for the largest death compensation.This kind of savings policy in Hong Kong is called "101" policy, which means that if you put 100 million in it, if the person dies, you will only get back 101 million.American insurance starts from paying the first premium, even if it is only a few thousand yuan, if you die in the first year unfortunately, 100 million yuan will be left to your family.
The reason why American insurance is cost-effective is the United StatesThousandsThe fierce competition among insurance companies, the advancement of medical care in North America, the long average life expectancy, and the relatively unobstructed investment environment and pipelines have made the cost of life insurance in the United States low, even one of the lowest in the world.
The United States has a history of nearly 1760 years since the first insurance policy was issued in the 260s. It is already a very mature and stable market. Many insurance companies are old stores with a history of more than 100 years.The Hong Kong insurance market has a history of about 20 years, while the Chinese insurance market has only developed for more than 1992 years (since XNUMX).
American life insurance is strictly audited and lenient in claim settlement.In terms of claim settlement, there will be no excuses to not pay or delay the claim settlement. Once there is a dispute over claim settlement, most of the legal interests belong to the policyholder.The claim settlement procedure in the United States is also relatively simple, as long as the death certificate and the death claim application form are submitted, the claim can be applied for.Non-U.S. citizens only need to translate the death certificate into English and send it back to the insurance company together with the death claim form for compensation.In contrast, Asian countries are relatively young in terms of insurance industry development, so their claim settlement systems are relatively unsophisticated. In addition to providing a lot of original documents for claim settlement applications, claims rejections often occur.
The U.S. insurance industry is strictly protected by U.S. laws, and each state has its own insurance laws. The supervision is very strict, and insurance companies are not allowed to falsely report the policy rate of return to win customers to buy.In contrast to Asian insurance, the insurance supervision is relatively loose. Although Hong Kong insurance mostly uses "British XX" or "French XX" or other foreign-funded insurance companies, basically the local foreign-funded insurance companies in Hong Kong are registered in the Cayman Islands or Bermuda area. , so the Hong Kong insurance contract will be regulated and protected by the laws of the place where the company is registered.
U.S. life insurance can combine death claims, cash investment, long-term care, and critical illness into one product. If the conditions are met, it can also receive death claims (pre-mortem benefits) in advance.In addition, the United States also has investment universal life insurance and index universal life insurance that combine investment.
Hong Kong life insurance products are actually very diversified, but in terms of capital-guaranteed indexed universal life (Indexed Universal Life, IUL), currently only the United States has it in the world.The dividend income of Hong Kong investment insurance is actually related to the direct investment income of insurance companies.andThe company invests on its own, saying that it earns more and less, but investors really don’t know if it’s true or not.You will be given as much as you can at that time.At the same time, investment returns are not guaranteed.In the U.S. Index Policy (IUL), to put it simply, investors’ money does not directly participate in the stock market. Instead, insurance companies use the stock index as a reference to calculate the interest of the policy holders.And all U.S. index insurance policies are principal-guaranteed-if the index falls, the cash value of the year will not decrease (but premiums will be deducted as usual).Generally, US insurance companies that do IUL products use the US S&P, Dow Jones Industrial Index, Nasdaq Index, European Blue Chip 50, Hong Kong Hang Seng and so on.The advantage of this calculation of interest is that it is open and transparent.People all over the world know how much the index has risen.
The reason why life insurance in the United States is exempt from capital gains tax (withdrawing money in the form of Loan) is exempt from income tax because it is a product under the Tax Code of the US Internal Revenue Service.To put it simply, life insurance in the United States must pass the Life Insurance Definitional Testing and Modified Endowment Contract tests if it wants to be tax-free.According to the age, gender, and insured amount of the insured, a maximum limit of premium payment will be calculated. If the value exceeds this value, the extra money will be taxed.Hong Kong and domestic insurance do not have such strict restrictions.
Hong Kong life insurance, policy income part does not need to pay any income tax or interest tax or value-added tax, but if the customer gets a green card later, the value-added part of all overseas insurance will have to pay capital gains tax to the US government.
This is why in the United States, if you want to use insurance to save education funds for children, you should buy it for adults, not for children-because children cannot put money in their insurance policies.If you can't release money, naturally you won't be able to raise much money.So what is the impact of this?If you have a green card, or if you plan to immigrate to the United States in the future, get a green card.Then your Hong Kong insurance obviously does not meet the definition of life insurance by the US Internal Revenue Service, which will cause you to buy a part of the value-added investment income of life insurance, which will be scraped off by Uncle Sam in the future.However, insurance in the United States does not have this problem.
In terms of inheritance tax, Hong Kong has not levied inheritance tax since 2006, so the compensation is not subject to inheritance tax.However, if the client has a green card status, the compensation will also be included in the estate and pay the U.S. estate tax.In the United States, as long as the amount is less than the tax exemption, there is no need to pay inheritance tax; if it exceeds the tax exemption, you can still avoid inheritance tax by changing the policy owner or setting up a life insurance trust.If there is an estate tax to pay, the settlement can also be used to pay the estate tax.
Many people like to buy a house in the United States. If you are a foreigner, you will have to pay inheritance tax in the future when your assets in the United States exceed $6, and the tax rate is as high as 40%.Life insurance can effectively hedge this tax risk.In addition, there is no inheritance tax on foreigners’ U.S. life insurance claims.
Both the life insurance in the United States and Hong Kong have a "two-year incontestable" dispute period, which means that if the policyholder dies within two years of the policy, if the insurance company finds evidence that the customer did not tell the truth or the policyholder commits suicide, the insurance company will Claims may be denied.However, if it is discovered after more than two years, the insurance company cannot refuse to settle the claim.In addition, the two countries have not included irresistible natural forces (such as earthquakes, floods and other natural disasters) in the exemption clause.However, in most Asian countries, the insurance policy will have a clause that "if the policy involves fraud, it can be retroactive for life", which often results in many disputes and slow claims.
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