How to buy insurance for children when they immigrate to the United States

With the growing popularity of having children in the United States, there are more and more Mabel around. After the child is born and grows up slowly, many parents begin to consider buying some related insurance for their baby. How should Bao Mei families, including those who plan to send their children to study in the United States in the future, buy insurance? Is it American, Hong Kong or domestic? This is a problem that many parents are very concerned about and have a headache. To this end, I specially found an article by mother cat to share with you how Mabel families buy insurance for their children, hoping to help parents. In response to Mabel's purchase of insurance, Mother Cat wants to remind parents not to be fooled again! Except for the medical insurance that children need to buy when they go to the United States in the future, there are basically no products suitable for babies in American insurance! If you want to make reasonable planning and asset allocation for your baby and family's life in the United States in advance, then consider buying an insurance as a guarantee as soon as possible, and only for yourself as a parent!

How should Mabel families, including those who plan to send their children to study in the United States in the future, buy insurance? Is it American, Hong Kong or domestic? This should be the most concerned issue for these families, but it is also the most controversial and hesitant issue.

The background of mother cat is often full of such problems, but because this aspect is really superficial, the so-called research before is too superficial, and I have been afraid to give you some advice. Fortunately, mother cat recently met a friend who has been engaged in the insurance industry in the United States for 65,438+00 years. She is quite senior and occupies an important position, so Mother Cat quickly asked her many insurance questions that Mabel's family cared about, which inspired her.

For example, Mabel now lives in China, and there are basically no products suitable for children in American insurance.

If Mabel wants to buy American insurance products after her birth, it is difficult for regular insurance companies to underwrite them, and insurance companies will hardly sell them to such customers. Moreover, the insurance coverage of children is limited, because children are small, and it is meaningless to buy products with high insurance coverage. So those American insurance brokers who come to Confucius Center to teach pregnant women in China and educate you to buy insurance for their children are all bluffing.

The products they are selling are about medical treatment, and they will recommend Mabel to buy an international medical insurance. In fact, if Mabel only goes to the United States once a year or even several years at this stage, this kind of consumer medical insurance is not cost-effective.

First of all, this kind of insurance has a high deductible in both the United States and China; Secondly, this kind of insurance does not cover many things, including Chinese medicine, mental illness, past diseases, congenital diseases, hereditary diseases, dentistry and ophthalmology, treatment items not recommended by doctors, over-the-counter drugs and so on. Moreover, the number of certified hospitals in China is quite limited, and whether these hospitals are on the list is extremely unstable and changes from time to time.

The United States is not completely free of insurance products suitable for children, such as dividend insurance in the United States, like new york Life or Dadu.

Dividend insurance is more suitable for children, similar to Hongkong's savings insurance, but if children live in China and their parents are foreigners, it is almost impossible to pass the underwriting (unless you invest a lot of assets in the United States ...).

At present, the only thing that the United States has a chance to underwrite is a 5-in-1 1 universal life insurance that can insure children. However, if you want to insure your child, both parents must insure together, and they must have strong American ties (ties with the United States), such as investment accounts of state-owned real estate, companies or banks in the United States. Some American insurance brokers who are eager for quick success and instant benefit will lobby customers to set up companies in the United States to facilitate underwriting, but they do not consider the risk that customers will have to declare taxes even if they have no operating income in the United States in the future.

Buying insurance for children in Hong Kong risks paying taxes on overseas assets in the future.

With the continuous depreciation of RMB, many families are considering using overseas asset allocation to achieve the purpose of maintaining value. Buying financial insurance in Hong Kong has become the main means of investment. Hong Kong insurance is becoming more and more popular in the mainland market. In the past two months, every weekend, photos of mainland customers queuing outside major insurance companies in Hong Kong have also attracted attention.

However, is it suitable for Mabel families to buy this kind of insurance in Hong Kong?

This should be viewed from two aspects. One is to see whether the insurer (that is, the insured) is a parent or a minor child; The second is to look at the family's future life planning and whether there are plans to immigrate to the United States with their children.

1

Is the insurer a parent or a minor child?

If the insurer is a child, then assuming that he will definitely choose American citizenship and settle in Bao Mei, he must be cautious. Because of the insurance you bought for your child, when the child is an adult, parents must transfer the applicant qualification to the child in order to let the child get it independently (otherwise, why don't you buy it for your child, just buy it for yourself). There is also insurance bought by American citizens in Hong Kong. No matter what kind of insurance policy you have, the interest and dividends before the end of the policy (as long as they exceed the principal) are all income and must be taxed! ! ! And if you choose education fund financial insurance for your child, isn't your purpose to spend some money to let your child go to college at the age of 18? At this time, it is inevitable to pay taxes to the US government.

From a global perspective, the United States is the country with the strictest supervision over financial accounts. According to the tax collection and management system in the United States, the inflow of personal account transaction funds exceeds $65,438+0,000 yuan, and taxpayers must file tax returns. Financial institutions should report the taxpayer's interest, dividends and other income in detail every year and transmit them to the tax authorities through computer networking.

In 20 10, the us congress passed FATCA (overseas account tax law), which extended the tax jurisdiction to global financial institutions and required global financial institutions to report the information of American customer accounts to the us government. For uncooperative financial institutions, 30% withholding income tax will be withheld on their income from the United States.

On February 8, 20 10, the US Treasury Department and the US Internal Revenue Service announced the first edition of the implementation rules, which immediately promoted the global process of FATCA. It requires American citizens and American green card holders who live in the United States and have assets of more than $50,000 overseas or who live outside the United States and have assets of more than $200,000 overseas to declare to the government before April 12. Refusing to declare will be regarded as intentional tax evasion, and once it is found out, it will be fined up to $50,000, and in severe cases, it will be sentenced.

The circled part in the figure below is a detailed description of the tax treaty between the United States and Hong Kong in the product description of an investment life insurance company of AXA Insurance Company in Hong Kong.

Therefore, many insurance brokers in Hong Kong even fabricated that Bao Mei families or families who have emigrated to the United States can buy dividend financial insurance in Hong Kong to avoid taxes, which is purely bullying you to study less.

2

About family future planning

If parents don't plan to immigrate as soon as possible or wait until their children grow up to reunite with them, then parents can buy any insurance company in Hong Kong to protect the future of their families and children, because you won't become an American. And if your parents have plans to immigrate to the United States, then you should be cautious. If you buy Hong Kong insurance, please be prepared for the risk of taxation of overseas assets in the future.

How to buy Mabel insurance?

Then there is no insurance suitable for Mabel in the United States, and any insurance with dividend income in Hong Kong is not suitable for Mabel. What kind of insurance should parents choose if they want to protect their children's health and education?

medical insurance

1

For example, children mainly live in China before adulthood.

In this case, if it is necessary to protect children's medical care, it is suitable to buy high-end consumer medical insurance that can be reimbursed by private hospitals (such high-end consumer medical insurance in Hong Kong has limited options and great restrictions on its use), which can be purchased at home, from international insurance companies and domestic joint venture companies. Parents and children are generally required to buy together, and the annual premium ranges from 30,000 to 50,000 RMB, but the protection is more comprehensive.

If you want to buy critical illness insurance for your child, domestic critical illness insurance is generally not designed to have financial value at the same time, that is, there will be investment dividends, so you can also buy it for your child. As for the cash value generated by interest, it is not mentioned that the insured amount received at the time of accident or termination of the policy will not be regarded as an overseas asset by the United States, that is, it will not be taxed. And if you promise not to withdraw cash in advance, and you won't transfer the insured to the child when the child is an adult (otherwise, you still have to pay overseas income tax for the part that exceeds the principal), then you can also buy Hong Kong's critical illness insurance for your child.

2

For example, children will go to America to study earlier.

In fact, if the child is healthy, there is no need to rush to China or Hongkong to buy medical insurance. You can wait until the children arrive in the United States to buy medical insurance in the United States. Because, as long as the children arrive in the United States and intend to live for a long time and start studying, they will inevitably ask for medical insurance in the United States. You know, living in the United States, without medical insurance, it is difficult to move. Americans rarely use cash to see a doctor, mainly because it is too expensive, and they can't afford to buy medical insurance.

However, the medical insurance in the United States is not limited to diseases, and it can not be investigated for past medical history, and there is no upper limit for claims, which is the biggest feature that distinguishes it from domestic and Hong Kong insurance. Therefore, there is no need to worry that children did not buy American medical insurance when they were young or healthy. It doesn't matter. This kind of consumer insurance is bought for use.

Education fund financial insurance

Because this kind of insurance involves dividends, it will be considered as income other than principal by the United States. If it exceeds a certain amount, overseas assets tax will be levied. So, if you care about this, try to avoid buying this kind of insurance directly with your child as the insurer.

So what should parents do if they want to prepare an education fund for their children? Buy insurance savings for yourself, treat your child as an insurance beneficiary, and then take out the money for your child as an education fund.

Therefore, American savings life insurance has become the best financial allocation for Bao Mei families. This kind of insurance can be flexibly withdrawn at any time as a child's education fund and his future retirement pension, and can rationally allocate family assets, realize property inheritance and avoid the high estate tax in the United States.

Moreover, whether you plan to immigrate to the United States in the future or not, you can buy such insurance to protect your children and family in the United States. Because of this kind of insurance, the United States stipulates that it can be sold to foreigners who do not live in the United States. It's just that you may have to go to America to sign a contract.

Insurance in the United States generally does not advise customers to pay claims at one time, but to pay claims in batches until the end of the policy to avoid paying taxes. Because the withdrawal in the United States is operated in the form of withdrawal (within the principal) and loan (over the principal), there is no need to pay taxes.

As for the inheritance tax as high as 40%, most middle-class families in the United States also reasonably evade it by buying life insurance, so as to leave their assets to their children to the maximum extent, not to mention that China parents like to leave all their money to their children for life, and they must do so. As for how Mabel's family transfers their property to their children through insurance, Mother Cat will open another chapter to analyze it in detail, so please look forward to it.