by Why buy US Life Insurance?
The most practical reason is that American insurance premiums are cheap! In the United States, China, Hong Kong and Taiwan to buy the same insurance, the United States premium is cheaper by several times the way.
The US insurance market is mature, credibility is guaranteed, and US life insurance can help you with property protection and judicial immunity.
American insurance has the function of tax-free investment, and the cash value of the insurance over a few years may accumulate to a considerable amount, which can be withdrawn later, and it is completely tax-free.
What are the types of life insurance in the United States? What are its characteristics?
1. Term Life Insurance
- Cheap price
- The protection period is short
- Older insurers can buy for a shorter period of time
2. Whole Life
This kind of insurance is relatively common in China. Insurance companies will pay dividends regularly according to the company’s profitability, but the dividend is not guaranteed. Over time, the cash value of the insurance will increase. The premium to be paid is basically fixed without a lot of flexibility, and the premium is relatively expensive. The insurance leverage is very small.
- Pay regular dividends
- Dividend returns are usually modest
- High premiums, small leverage
- The policy cash value loan interest rate is usually 4% to 6% per year
3. Universal Life
Universal insurance policies have many flexibilities and can be paid at any time. The fee can be as much or as little as possible, but the minimum payment level should be achieved. It also has a cash value and a fixed rate of return each year. Like all insurance is a conservative type of product, the rate of return is not high.
- Regular rate of return
- Flexible payment method
- The policy cash value borrowing rate is usually 0% after ten years
- Flat returns
4. Variable Universal Life
Evolved from universal life insurance, the key difference is that customers can choose to invest in different funds within the policy, thereby obtaining a corresponding investment return. There is no cap, and the proceeds are not subject to tax. But there is no guarantee, and if the cash account loses too much in the financial market, the policyholder may need to add more cash to maintain the validity of the insurance. Therefore, this product has the greatest market risk.
- Have the above advantages of universal insurance
- Possibility of high return on the fund
- The possibility of severe losses in the fund
- No guarantee, no guarantee
