People often send private messages in the background to ask the editor
What is savings dividend insurance ?
Is savings dividend insurance worth buying?
What does Hong Kong savings dividend insurance look like and what is the difference between it and the mainland?
Who is suitable for buying Hong Kong savings dividend insurance?
What should I pay attention to when purchasing Hong Kong savings dividend insurance?
Is savings dividend insurance in Hong Kong protected by law?
...
Faced with many problems, today the editor will introduce Hong Kong's savings dividend insurance. Perhaps it is useful for everyone's US dollar investment in the current environment.
01
What is savings dividend insurance?
*Classification of insurance (by insurance object)*
Generally speaking, according to the insurance object, insurance products are divided into the above categories. As shown in the figure, dividend insurance is one of the branches.
dividend insurance has a long history in the international market. It is recognized by the world as the earliest dividend of life insurance was the first time in 1776 that the British Justice Life Insurance Company returned 10% of its profit to the insured. Foreign, dividend insurance has been used by developed countries for more than 200 years, and is the main insurance type used to resist inflation and interest rate changes. was approved to be introduced into China in 2000, and became popular once it was introduced.
Simply put, dividend insurance is an insurance that has both protection functions and can obtain dividends.
Savings dividend insurance has both savings and dividends, and also has the function of compensation for death.
savings function means that if there is no accident during the insurance period, at the agreed time, the insurance company will return a sum of money to the insurance recipient, similar to the bank's zero deposit and withdrawal;
dividend nature mainly comes from the year-end dividends of the insurance company, so it is very important to choose an insurance company with strong profitability;
savings dividend insurance also has the same protection function as traditional life insurance, which is reflected in the insured's death compensation . If the insured unfortunately dies, the insurance company will pay the death insurance and accumulated dividends as agreed in the policy.
Therefore, savings dividend insurance is guaranteed by the maturity survival margin. There are dividends every year. The dividend interest is slightly higher than the bank's fixed deposit. Interest and dividends do not require personal income tax. The operating principle of the product can be simply understood as giving the money to the insurance company's professional investment team to manage, and obtaining investment returns after a certain period of time, and the policyholder enjoys the corresponding amount of death protection during this period.
02
Advantages of Hong Kong savings dividend insurance
1. Reasonable and legally allocate overseas and US assets
Hong Kong savings insurance is uniformly denominated in USD . The US dollar is a global currency and is also a reserve currency for many countries.
Hong Kong insurance belongs to offshore assets , and is not included in the scope of taxation, debt avoidance and tax avoidance . Insurance companies in Hong Kong pay more attention to personal privacy, respect and protect personal property; major insurance companies are registered in the Bermuda area, and their funds are more secure and confidential.
2. Locking risks and effectively avoid the very likely inheritance taxes in the future
USD savings dividend insurance design is to plan for the long-term future of customers, such as children's education , pension planning , etc. Therefore, if you hope to achieve a certain asset appreciation and use it in the short term, it is not recommended to purchase Hong Kong savings dividend insurance.
In the Mainland and Hong Kong, many people purchase insurance, especially large-scale life insurance, and there is another very important reason - death claim exemption (capital gains tax and estate tax) .
Although there is no inheritance tax in China yet, it is a consensus among all governments that tax the rich people. The CRS since 2017 can also be seen. The property tax, which is now in turmoil in the mainland, is also an advance force for inheritance tax. Claims are completely tax-free and do not enter into the complicated and repeated process of inheritance fairness and distribution.
In addition to the very attractive function of tax exemption, insurance products also have excellent features for inheritance: can specify beneficiaries and distribution ratio .Such inheritance arrangements do not require notarization in the notarization office like wills, or other arrangements require the consent of all legal heirs. They protect the privacy and security of the property very well, and can be distributed in the most convenient way according to their own wishes.
3, high return, low risk
Hong Kong Insurance adopts compound interest dividends. Generally, the compound interest of is about 6.5% , which is equivalent to at least 10% of the single interest. Moreover, this part of the income is continuously and stably generated, and the funds will show exponential growth in the later stage; the long-term customer returns of mainland annuity insurance are about 3% , and after decades, the gap in absolute amount is very large.
This is because Hong Kong is a free trade port and an Asian financial center. Its investment channels are not restricted and can invest globally. The investment strategy has higher freedom, medium- and long-term equity assets account for a large proportion (60%), and fixed income assets account for a relatively small proportion; the mainland capital market is still immature, and not only does the supervision limit the proportion of insurance companies' investment rights, but also the insurance companies themselves dare not allocate more for risk control considerations. In fact, according to the investment direction of 15 trillion yuan at the end of 2018 disclosed by the Mainland Insurance Association, the largest was bonds, accounting for 40%, while stocks + public funds accounted for only 10.8%.
Therefore, among financial products of the same risk level, Hong Kong's savings insurance is considered the best.
03
Is the allocation of savings dividend insurance in Hong Kong protected by law?
In fact, as long as you go to Hong Kong to buy it yourself and find a large insurance company to buy it, your insurance is protected by Hong Kong laws.
Only Hong Kong insurance contracts signed in Hong Kong are protected by Hong Kong laws. If not, they may become underground insurance policies and are not protected by Hong Kong laws. Therefore, domestic customers who apply for insurance in Hong Kong must go to the insurance company's counter for identity verification in person, and make sure that you come here to take out insurance in person.
04
Who are the savings dividend insurance suitable for?
1. Those who want to allocate overseas assets
Most of the insurance policies in Hong Kong are USD insurance policies . They can reasonably and legally convert RMB assets into US dollars overseas assets, which is safe and convenient. There are many reasons for allocating overseas assets, but hedging against the risk of currency depreciation is a relatively common reason. The depreciation of the RMB in the past one or two years has given rise to the birth of large-scale insurance policies for savings insurance in Hong Kong.
2, high net worth person
high net worth person usually considers many things such as asset confidentiality, wealth inheritance, risk avoidance, etc., and therefore often choose to allocate overseas assets. Judging from the data, in recent years, the proportion of high-net-worth individuals in my country has allocated overseas assets has become increasingly high. Hong Kong is the most important offshore asset management center in China.
3. Those who want to reduce tax and fee expenditures
This is mainly aimed at inheritance tax. Although my country has not officially imposed inheritance tax, various rumors have been circulating in recent years, legislative work has been continuously promoted, and people's assets can be clearly checked (such as real estate registration, etc.), laying the public opinion foundation, legal basis and practical conditions for future imposition. As a tool for asset allocation, insurance itself is not included in estate tax. Secondly, in order to introduce capital, Hong Kong has long abolished the inheritance tax, so many people with a lot of property will choose Hong Kong savings insurance to to avoid tax .
4. Financial managers without time/energy/ability
One of the reasons why many people question savings insurance is that although the income from bank financial management has dropped across the board, some people think that using some psychological wealth can still achieve a better rate of return, and it does not have to be restricted by the 15-year investment cycle. Basically, each company has only one or two main products in Hong Kong savings insurance. It doesn’t have many choices, but it’s easier to make a decision. Buy it in one go, solve the long-term arrangement of a fund. After purchasing , there is no need to pay attention to it, just notify the company when withdrawing money. No financial management skills are required, and the investment is handed over to professionals to reduce risks. These characteristics of are very attractive to people who have no time/energy/ability.
5, Shopping Party
is based on the long investment return cycle of savings insurance, and the early retirement income is not high and even the principal will be lost. But this characteristic of being evil and being honey is an institutional constraint for crazy shopping parties, which can make these people mandatory savings and have a long-term and reasonable plan for their future life.
6. Those with clear investment goals
There are many people who buy this type of product by saving money for their children to study abroad/buy a house. The demand itself is 15 to 20 years later, so they are not so sensitive to the characteristic of long cycles.
Of course, the needs of various groups of people above are overlapping. For example, high net worth individuals are usually more concerned about the allocation of overseas assets and are more willing to sacrifice certain returns for simplicity and convenience.
05
What should I pay attention to when purchasing Hong Kong savings dividend insurance?
Whether a product is good or not depends on the person, and there is no unified standard. The following points are worth paying attention to:
1. The income on the plan and historical dividend data
As mentioned earlier, the income on the savings dividend insurance plan is all expected returns, and a large part is the non-guaranteed part. Whether the non-guaranteed can meet the expectations is something we care about. Currently, according to GN16's guidance, Hong Kong insurance companies will have dividend reports every year to explain to investors whether the dividends this year meet expectations.
2. Product life cycle
Each enterprise has its own life cycle, and each product also has such a life cycle. If this product is in the initial and growth stages, there is a lot of room for growth. If this product has developed to the mature stage, you will follow up before following up. Basically, the profit will continue.
First of all, the newly launched products will definitely make good returns. On the one hand, it is because of a newly developed product with a relatively small plate and some high-quality investment projects. On the other hand, it needs to make a sample to give confidence to those who buy in the future.
3. Company strength
. Purchasing savings dividend insurance products depends on the company's strength. Only when the company's strength is strong can it have certain historical assets as stable funds, and to ensure its stable operations under some major crises and avoid major twists and turns.
4. Extraction method
When many consultants introduce this type of life insurance, they will demonstrate how many years of withdrawal and how much balance will be.
5, handling fee for renewal
Most companies currently have handling fees for the premiums they need to pay through UnionPay channels, ranging from 1.2% to 1.5%, and are borne by the customer. If it is a small amount, it doesn’t matter much. If it is a large amount of insurance policy, it is recommended to pay the premium in a lump sum to avoid this trouble.
6, Exchange rate risk
All this life insurance can do is "balance exchange rate risk". It is difficult to judge the future exchange rate trend of the RMB. It can only be said that choosing a portion of US dollar investment is a relatively balanced approach.
Finally, before purchasing, the provisions and details should be read clearly.
. After all, it depends on yourself.
can only be more calm if you don’t blindly follow.
