What are the advantages of American insurance?

With the increasingly fierce social competition, people’s awareness of insurance is also increasing. Supporting an umbrella for themselves and their families has become the basic concept of more and more domestic investors. Purchasing overseas insurance has gradually become the first choice for many investors to allocate globally. Among them, many people choose to buy American insurance. The insurance industry in the United States is very developed. The types and scope of insurance cover all aspects of life, such as life insurance, medical and health insurance, vehicle insurance, housing insurance, liability insurance and so on.
At present, many “quasi immigrant families” and even “new immigrant families” know little about American insurance. But in fact, for those who intend to immigrate or have immigrated to the United States, it is essential to buy life insurance and medical and health insurance in the United States.
1、 American insurance has a long history
The United States has a history of nearly 260 years since the first policy was issued in the 1760s. It is a very mature and stable market. Many insurance companies are century old. The product has also experienced five generations of evolution. At present, life insurance in the United States often has both lifetime benefits and death protection, with a minimum profit and an annualized return of more than 7%.
2、 Large number of purchasers and accurate purchasers
American insurance accounts for 28.90% of national insurance in the world
There are four categories of suitable people:
1) As a U.S. tax resident (a customer who has obtained a U.S. green card or plans to immigrate to the United States in the future), if he buys an overseas insurance policy, he will face the possibility of being taxed. Because the United States is a global tax country. For example, customers buy a Hong Kong savings dividend policy, but this policy is likely not to be recognized as a qualified life policy in the United States. The United States is likely to classify such policies as financial products, so customers may face taxation.
2) Non US tax residents who buy property in the United States often ignore the potential risk of estate tax in the United States. If the customer is a U.S. tax resident, the estate tax allowance is $5.6 million (2018) and the couple is $11.2 million. If the customer is a Chinese and has purchased real estate in the United States, the estate tax exemption is only $60000, and the tax rate of estate tax is more than $1 million, which is charged at 40%.
3) For those who go to the United States to have children, study in the United States or business contacts, such customers may more consult American insurance for their children, because parents are very likely to go to the United States to study or live with their children in junior high school or high school in the future. If parents can buy American life insurance for their children or family, they can protect the family’s life and give their children a better educational environment in the future.
4) High net worth families and business owners often configure American life insurance with irrevocable trust to achieve debt isolation and ensure the quality of life of family members. American insurance can be said to help this kind of people keep money, love and debt.
Of course, there are other customers, such as those who want to allocate dollar assets, seek asset protection and risk isolation, make tax planning, or want to realize wealth inheritance. These customers are also accurate customers of American life insurance.
3、 Cheap premium
The longer the life cycle, the longer the life expectancy, which means that the delay of the compensation period of the insurance company, the lower the cost of insurance. The life expectancy of Hong Kong’s life table is 100 years, while that of the United States is to 120 years. Therefore, under the same conditions, American insurance companies charge less premiums.
4、 Overwhelming price advantage
The price of insurance in the United States is 1 / 5 of that in the mainland and 1 / 3 of that in Hong Kong. The same premium provides higher coverage. Take a 40 year old man as an example. He also pays an annual premium of $80000 for five years. The insured amount of Hong Kong insurance is 800000, while that of American insurance can reach 2 million.
5、 Advanced product design
American insurance has the world’s leading product design. Taking IUL index universal life insurance as an example, the yield of the product is linked to the stock market index, the minimum interest is guaranteed, and the long-term historical compound interest reaches 6% – 8%. Cash value, like demand deposits, can be used at any time as a supplement to retirement plans or children’s education.
6、 Perfect legal guarantee
Through reasonable planning, realize the privacy and isolation of wealth and avoid debt risks such as politics, marriage breakdown and enterprise operation; With the use of American trust, asset protection and risk isolation can be realized to the greatest extent.
7、 Perfect CRS solution
The United States is a non CRS member state. Assets of non US tax officials in the United States do not need to exchange information with the tax authorities of other countries. At the same time, US dollar insurance enjoys tax benefits such as income tax exemption and inheritance tax exemption (non US tax residents), so as to help high net worth families realize the confidentiality and inheritance of wealth.

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