How to use universal life insurance?

Universal life insurance has always been the choice of high net worth customers. However, with the strict foreign exchange control system and the sharp increase in overseas asset allocation demand, some middle-class customers are becoming familiar with it. Because the structure and terms of this kind of products are complex, involving the tripartite game with banks and insurance companies, the professional quality of brokers themselves is extremely high. This paper will use five W, WHO, WHAT, WHERE, WHEN and WHY to try to simply and clearly unveil the mystery of universal life insurance for you.

WHO: who needs and is suitable for this kind of products?

a. Invest in immigration customers. Recently, Xiaobian has contacted many customers who are suffering from the lack of safe passage for immigration. Whether it is HK$ 1 million in Hong Kong, AUD $5 million in Australia, US$ 85, that will soon rise in the United States, etc., through rapid financing of premiums, large remittances can be made in Hong Kong in real time to complete the purpose of immigration.

B. Overseas home buyers, dollar assets are the most talked-about topic among Xiaobian and high-net-worth customers recently. No matter for their children to study abroad or emigrate to buy a home, they need to buy a house in various places. Undoubtedly, it is a good way to raise funds through premiums.

C. Entrepreneurs who supplement the cash flow of physical business, the domestic real economy has changed rapidly recently, and some entrepreneurs engaged in coal, steel, oil and other industries contacted by Xiaobian are prone to cash flow shortage. If they have bought this type of products before, they can solve some urgent needs through overseas low-interest loans of 2-3%.

D. Customers seeking overseas asset allocation, more and more customers find that their assets are concentrated in RMB assets. Due to the strength of the US dollar, it is difficult for a single RMB asset to resist global risks. Undoubtedly, a policy with a high loan amount in US dollars is the most popular.

e. allocation of us stocks, hong kong stocks, overseas FOF and ETF funds. since overseas stocks and funds require customers to make direct telegraphic transfer settlement in overseas banks, the cash value financing of insurance policies can help customers complete the allocation of overseas stocks and funds.

WHY does why need a universal life insurance plan? What are the benefits?

1. The funds are highly flexible: the loan amount is extremely high, which can be as high as 8% of the premium

2. UnionPay can pay the premium in advance on the same day, and get the loan immediately after the policy is issued-

3. The procedures are super convenient: there is no need to open a bank account, and there is no need for complicated loan procedures from the bank

4. Very important terms: there is no need to reserve 1 million US dollars. UnionPay's handling fee is cheap

6. Additional benefits: the insurance policy can be settled in the last 12 months of life (humanization)

7. Avoiding inheritance tax and enhancing family security

8. A most secure dollar asset with minimum guaranteed interest

Example and analysis of typical products

Customer Ms. Wang, 37 years old, China A (mainland cities are divided into AB two categories. Among them, customers with a premium of $1 million use UnionPay cards to authorize credit card swiping, and the funds can cross the border safely. In addition, the value of surrender premium in the first year is $87,, and the maximum loan amount is 9% of the cash value = $727,, which is almost 72.6% of $1 million.

In this way, customers can get 1) funds to leave the country quickly and legally, 2) high death protection, avoiding inheritance tax, 3) extremely low-interest overseas house payment; 4) A safe USD policy with good income and minimum guaranteed interest

1) Product features

1. Insurance company: Zhong * Group Life Insurance

2. Policy currency: USD/RMB

3. Premium term: wholesale payment

4. Interest return: guaranteed for the first two years-USD 3.9%/. At present, it is USD 3.9%/CNY 4.2%

2) loan information

1, loan in US dollars only

2, minimum loan amount is US$ 125,

3, maximum loan amount is 9% of the first-day surrender value or US$ 6,25,

4, loan interest. According to the current Libor (London Interbank Offered Rate), the three-month US dollar Libor is .512%, and the policy loan cost is 1.75%+ three-month Libor=2.262% (current interest rate) < P > How long does it take? General process?

insurance process:

1. discuss with professional consultants to determine the appropriate plan and prepare financial and health underwriting related materials

2. agree on the insurance date and submit an application in Hong Kong

loan procedures:

1. fill in the loan application form for universal life insurance policy

2. You can choose to submit it together with the insurance application or within 45 days of the effective date of the policy

3.

according to the current Libor (London Interbank Offered Rate), the three-month US dollar Libor is .512%, and the policy loan cost is 1.75%+ three-month Libor=2.262% (current interest rate)

WHERE is it?

You don't need to go to Hong Kong again, except that you need to apply for it for the first time in an insurance company in Hong Kong and have a relevant physical examination.

Compared with traditional life insurance, universal life insurance requires higher professional quality of brokers, past performance of brokerage companies and good relations with insurance companies and banks. Therefore, it is recommended to choose reliable conscience brokers and companies.

Finally, frequently asked questions (FAQ)

1. Can overseas people apply for policy loans when they apply for universal life insurance?

yes, please follow the normal application procedures.

2. can I apply for a policy loan if I insure in the name of the company?

yes.

3. the maximum loan amount is 9% of the surrender value of the policy. how can I find the data of the surrender value of the policy on the first day when I apply for insurance?

relevant data can be found on page 2 of the statement of interest.

4. after the loan is approved, how does the customer collect the money?

the loan will be paid to the policyholder according to the existing instructions for the payment of the maturity of the policy; Customers can also put forward new payment instructions to collect money by transfer or check.

5. can I repay the policy loan at any time?

yes, customers can choose to repay the policy loan in part or in full. for details, please refer to the policy loan service guide for universal life insurance.

6. can I find a third party to repay the loan?

no, only the policyholder or the insured can repay the loan.

7. If the loan amount is less than 9% of the surrender value, can the customer apply for another loan or increase the loan?

no, each policy can only apply for a loan once, and applications for increasing the loan amount are not accepted.

8. if I have paid off all the loans in the 1th policy anniversary, can I apply for another new loan?

no, each policy can only apply for a loan once, and the loan must be submitted within 45 days from the date of issuance of the policy.

9. Can I take out another universal life insurance policy and apply for a loan?

yes.

1. Is there a personal limit for the maximum loan amount?

The maximum loan amount of each policy is 9% of the surrender value, or the lower of HK$ 5,,

or US$ 6,25,. There is no personal limit, but BOC Group Life has the right to decide whether to accept the loan application.

11. if the currency of the policy I am insured for is RMB, and I want to pay the premium and receive benefits in Hong Kong dollars or US dollars, how will the premium and benefits be determined?

you can pay the premium in hong kong dollars or us dollars, but the exchange rate must be determined by BOC group life insurance at the time of premium payment. Similarly, if the benefits are settled and paid in non-policy currencies, the amount of benefits paid must also be determined according to the exchange rate determined by BOC Group Life when the benefits are paid. Please note that the exchange rate price changes at any time and will affect the amount of premiums or benefits paid in non-policy currencies. For the risk statement of RMB and USD insurance, please refer to the section "Risk Statement of RMB and USD Insurance".

12. what is the dividend payout ratio?

The dividend payout ratio is the interest rate announced by BOC Group Life Insurance, which is applicable to the account value of the policy. Under normal circumstances, BOC Group Life Insurance determines the actual dividend payout ratio based on a variety of factors, including but not limited to market conditions, actual investment performance and future investment expectations.

13. Is the dividend payout ratio guaranteed?

The current dividend payout ratio is not guaranteed, but it will be no less than the minimum dividend payout ratio.

14. can I change the insured amount during the policy period?

You can change the insured amount from the third policy year:

If the insured amount is increased, the increased amount must pass the underwriting requirements, and you also need to submit a valid guarantee.

it is also possible to reduce the insured amount, but it may be necessary to pay part of the surrender fee.

15. is it necessary to meet any requirements for withdrawing part of the money?

All applications for partial withdrawal must meet the following conditions:

Partial withdrawal can be made once every policy year.

any withdrawal made in the first 1 policy years shall not exceed 2% of its surrender value. The insured amount and account value will be reduced according to the amount of the withdrawal.

Starting from the 1th policy year, any withdrawal amount will be deducted from the account value, and:

If the withdrawal amount does not exceed 5.% of the account value, the insured amount will not be reduced due to the withdrawal amount; There is no need to pay part of the surrender fee.

if the withdrawal amount exceeds 5.% of the account value, the insured amount will be reduced according to the amount exceeding 5.% of the account value.

part of the surrender fee applicable to the reduced insured amount will be deducted from the account value.

BOC Group Life has the right to refuse the application for partial withdrawal if it will reduce the surrender value to less than RMB2,/USD3, or reduce the insured amount to less than RMB3,,/USD4,.