Why can I avoid tax by buying insurance?

Insurance Bian Xiao helps you answer, and more questions can be answered online.

So can the mainland.

Hong Kong itself is a tax haven, and there is no need to levy inheritance tax after 2006. Even in the United States, where taxes are levied all over the world, as long as you pay for life insurance, no matter where you buy it, you can avoid taxes and liabilities.

Rich people go to Hong Kong to buy insurance, mostly for the asset transfer function of "tax avoidance", "debt avoidance" and "hedging". Insurance is an invisible asset with high confidentiality. According to informed sources, some small and medium-sized owners who are on the verge of bankruptcy actually mortgaged their industries to mainland banks for cash, changed hands to buy insurance in Hong Kong, and smuggled huge assets overseas. It is hoped that under the legal framework of "insurance right is greater than creditor's rights" overseas, even if the company is liquidated, the insurance policies in their hands will not be squandered, so as to achieve the purpose of preserving assets.