How to do a good job of insurance allocation when immigrating to the United States?

From the insurance history, American life insurance has a history of 260 years, Hong Kong has a history of 170, and the mainland insurance industry started late, only about 20 years. Therefore, in terms of supervision, management and law, American insurance is the most advanced and trustworthy in the world at present. Secondly, insurance companies in the United States are supervised by the American Insurance Regulatory Commission, and the United States has a special fund to guarantee payment. Government regulators require all insurance companies to participate in reinsurance and establish a guarantee fund in each state to pay reinsurance premiums. If an insurance company does not operate well, the reinsurance institution will designate another insurance company to take over, and the guarantee fund will be responsible for the guarantee.

Security of insurance market 1) Insurance cost

I'm afraid no country can compare with the United States in terms of premium. For similar insurance, the premium in the United States is 1/3 in Hong Kong and 1/6 in the Mainland.

2) avoid debt

For many rich people, one of the most important reasons to buy life insurance is to avoid debt problems.

In the Mainland, Hong Kong and the United States, the cash value of life insurance can be exempted from litigation and enjoy judicial immunity. In other words, even if the insured goes bankrupt or goes to jail, no one else can touch the money on his insurance. Even if divorced, large insurance policies will not be divided.

However, it must be pointed out that in Chinese mainland, once a party starts judicial immunity, it must prove the innocence of the source of funds. If a criminal offence is involved, the court has the right to freeze, detain or seal up the insurance of the persons involved.

3) tax avoidance

Note: If you have state-owned assets in the United States, or plan to buy a house in the United States, immigrate to the United States, or are already American citizens, then you must carefully choose insurance in Hong Kong and the Mainland, because this will not only help you avoid taxes, but also pay more taxes!

Many people don't know this when they buy insurance. The IRS stipulates that American citizens and residents need to pay premium tax once they purchase overseas insurance. That is to say, from the moment you become an American resident, once you pay the premium of an overseas policy (a policy outside the United States), the IRS requires you to fill out a form every quarter and pay taxes every quarter.

In addition, as an overseas financial asset, according to the FBAR clause, if the cash value exceeds USD 65,438+0,000, TDF90-22. 1 declaration is required; If it is unintentional omission, it will be fined $654.38+00,000; If it is intentionally omitted, it will be fined at least $654.38+00,000 or 50% of the cash value.

Insurance-related taxes are as follows:

Capital gains tax:

American citizens or tax-paying residents have to declare their family income in the previous year every year, including all overseas income. This means that insurance purchased in the mainland and Hong Kong generates income and needs to be declared and taxed. For high-income families, the tax rate may be as high as 39.6%. Therefore, it is not advisable to blindly follow the trend to buy insurance. The reason why American insurance can avoid tax is that it is designed in full accordance with the requirements of IRS tax law, so that insurance can not only protect customers' income, but also avoid tax perfectly.

Inheritance tax:

Although the mainland's inheritance tax clamors for the dust to settle, at present, neither Hong Kong nor the mainland collects inheritance tax, while the US inheritance tax has been implemented for more than 100 years, with a set of strict regulations and procedures. Even if you are not an American, you need to pay inheritance tax as long as you have state-owned assets in the United States. The tax exemption for foreigners in the United States is only 60 thousand yuan. Once a foreigner who owns assets in the United States dies, all assets over 60,000 have to pay inheritance tax, and the tax rate is as high as 40%. Only by paying taxes and fees can you inherit the inheritance. In other words, you left your child a house of 1 10,000, and the child had to pay 400,000 yuan to get this suite. Therefore, whether you are optimistic about real estate investment in the United States or want to buy a suite for children studying abroad, you can't ignore the issue of inheritance tax. Insurance itself cannot avoid inheritance tax, but it can reduce the impact of inheritance tax and let children get more assets. The most common practice is to set up an irrevocable trust+life insurance.

Overseas insurance tax:

Many people ignore this. The IRS stipulates that once American citizens or residents purchase overseas insurance, they must pay 1-4% tax on the premium. In other words, from the moment you become an American resident, the premium of your overseas policy will be taxed.

Unacceptable insurance:

China has very strict regulations on insurance, one of which is regulation No.7702, which stipulates how much the insured can invest in a life insurance for tax-free investment. Moreover, many Hong Kong insurances have no limit on the amount, so you can invest as much as you want.

This means that the money you invest is likely to far exceed the value allowed by the IRS. In the eyes of the IRS, such insurance is not insurance at all, it can only be called investment, so there is no way to avoid tax, and the tax payable cannot be less.

Then, if you plan to immigrate to the United States or have already immigrated to the United States, what should you do if you buy insurance at home or elsewhere?

Suggestion 1:

If you are going to immigrate to the United States and have not bought insurance from countries outside the United States (such as Hongkong Insurance, Singapore Insurance and Chinese mainland Insurance), please do not buy insurance from these countries for the time being, and consult your American tax agent and American insurance agent before making a decision, because the insurance you buy must comply with American tax laws, otherwise it will bring you a lot of unnecessary trouble.

Recommendation 2:

If you have immigrated to the United States, and have already purchased insurance from Hongkong or China before, it is suggested to reduce the investment in insurance or stop it as soon as possible. At the same time, seek professional advice from American law and accounting, and do a good job in family and enterprise asset planning, so as to legally avoid the expensive effect brought by global income from immigration to the United States.

Recommendation 3:

If you have immigrated to the United States and have not purchased American insurance, please consult an insurance broker to provide insurance protection for yourself and your family according to the actual situation.

Summary:

Hong Kong insurance is a suitable choice for Hong Kong residents. If you want to buy assets in the United States, immigrate to the United States or are already American citizens, choosing to buy insurance in the United States is the most secure and wise choice.

Of course, there are also complicated and mixed situations in American insurance. At this time, a professional and reliable agent is very important to all of you. Only by knowing American insurance professionally enough can we help customers plan their assets better, choose appropriate insurance and ensure their interests.