Recently, the US dollar has strengthened and once surpassed the euro to become the most expensive currency. Therefore, it is recommended that investors who need to allocate US dollar assets can follow the trend!
Bank of the United States Global Research Department said that the US dollar is nominally at its highest level since the beginning of this century, but in fact it is at its strongest level since the early 1980s. Bank of the United States Global Research Department analysts believe that the long-term trend of the dollar index is upward, and the US dollar index target or resistance is rising.
From the perspective of asset allocation, you should allocate enough US dollar assets at any time, and any time is a good time. No matter what market cycle the US dollar is in, it actually has the value of allocation, that is, US dollar assets will become one of the standard configurations for global investors. The core significance of configuring US dollar assets is not foreign exchange speculation, but the multiple advantages of cross-currency configuration:
Cross-currency configuration advantages
. offset some exchange rate risk
2. The systemic risk of dispersing a single currency
3. More opportunities across regions
From an investment perspective, holding US dollars in China is not very meaningful because there are not many investment channels and the rate of return is not high. However, some US dollar assets can be allocated, such as: American Life Insurance!
Why are investors advised to configure American life insurance? What are the advantages of American life insurance?
. A long history, mature market, diversified products
The United States is the world's most developed life insurance country, the world's largest insurance market, with high maturity, and has a history of more than 260 years.
U.S. life insurance products are diverse and can meet the different needs of different customers. has the world's most advanced life insurance product - the United States Index universal life insurance (IUL). The biggest feature is that the policy cash value is linked to the main stock market index (such as the S&P 500), so as to ensure the bottom-up profit and compound interest. IUL is a good choice for customers who are looking for retirement income with greater upward potential and tax benefits.
In addition, The living benefits of American life insurance allow policyholders to enjoy the value of the policy during their lifetime, and it is not just the function of a single fund inheriting to the beneficiary.
2. Strict supervision, safe and reliable
is protected by the United States' perfect legal and insurance system, and is safe in funds and an undisputed asset that belongs to individuals. The United States implements a dual supervision system for the insurance industry of the federal government and state governments, and the federal government and state governments have their own independent insurance legislative and regulatory powers. Every product of every insurance company needs to be approved by regulatory authorities in dozens of states before it can be launched to the market. In addition, the government requires that the reserve rate of companies that are insured by life insurance must be maintained above 100%, and the average industry reserve rate is as high as 115%.
3. The premium is cheap. The cost-effectiveness is
premium is about 1/5 of China and 1/3 of Hong Kong. It is good and cheap!
The reason why the premium is cheaper is because the numerous insurance companies in the United States have led to fierce competition in the US insurance market. There are as many as 800 life insurance companies in the United States. According to the value rules of the market economy , the premium of US insurance is lower. Not only that, but also due to fierce market competition and good health level, the leverage of US life insurance is also very large. Simply put, low premium and high leverage American life insurance can allow customers to get a greater cost-effectiveness when purchasing insurance.
In addition, American life insurance companies refer to the latest life cycle table (also known as "death table" and "mortality rate table". Insurance companies must formulate premium standards based on the mortality rates of all ages in the country presented in the table). As we all know, the longer the insurance company spends money, the less premium the policyholder has.
4. Reasonable tax exemption hedging risks
As we all know, the United States is a country with "Taxes" , but American life insurance enjoys certain advantages in taxation!
Take income tax as an example. In the United States, if it is a normal retirement account, once the account holder dies and the heirs want to get the money in it, they must pay a tax first. But if it is compensation for life insurance, the money does not need to be paid tax and will be delivered to the beneficiary in full.
Regarding inheritance tax, for non-U.S. tax residents, Life insurance policy is an intangible asset in the United States, so it is exempt from inheritance tax in the United States. For US tax residents with large assets, the US life insurance policy combined with irrevocable trust can effectively resist the shrinkage of assets caused by taxation.
In addition, since the United States does not add CRS, purchase life insurance in the United States, and the policyholder does not have to worry that his policy will be used as an asset to declare upwards, causing unnecessary losses.
In addition to eliminating tax troubles, US life insurance also has the benefits of hedging risks.
If an investor without a US identity purchases many properties in the United States, after his death, his children want to inherit these properties. According to federal law, if their assets exceed 60,000 US dollars in the United States, the tax rate is as high as 40%. Moreover, if the inheritance of the United States inheritance is paid first and then inherited. If the heirs cannot afford the high inheritance tax, the house will be auctioned by the government.
But if the investor purchases the property and purchases American life insurance, then if he unfortunately dies, the risk will be hedged: his beneficiary can use the compensation of the life insurance to pay high inheritance taxes, thereby ensuring the smooth transmission of assets.
Reasonable tax avoidance and hedging risks have made US life insurance add the attributes of optimized asset allocation on the basis of protecting the future, making customers more comfortable when handling their assets.
555. Targeted inheritance. The target is clear.
The insured can designate the insurance beneficiary according to his own wishes. After his death, the compensation will be paid to the designated beneficiary and will not be affected by factors such as marriage and debt disputes.
Once the policy is established, it is protected and bound by the US insurance law, which means: if the insured encounters legal disputes (such as bankruptcy) in his country after a period of time, the policy itself will not be affected in any way. At the same time, if the insured faces the forced delivery of his or her own property (such as divorce) after a period of time, the policy itself will still not be affected in any way.
In other words, due to the protection of the US insurance law, it is difficult for other individuals and countries to involve this property. Therefore, the policy is not easily affected by external forces, making customers more at ease.
6. Convenient claims settlement and more humane
In the US insurance market where laws and regulations are extremely strict, there are almost no insurance policies that are difficult to settle claims. The claim settlement method is simple, convenient and fast, and the two-year non-defense clause is more humane. American life insurance emphasizes "strict entry and loose exit" .
Specifically, although it is strict and takes a long time to verify the policy, once the insured dies and the compensation process begins, the speed is definitely very fast.
For American citizens, you can apply for compensation by providing the insurance company with the death certificate and the death claim application form. Instead of the US citizens, there is only an extra step that requires the death certificate to be translated into English, which is very concise.
After the application is issued, the insurance company will deliver the compensation to the beneficiaries as soon as 2 weeks, so that they can spend the most money-intensive days after their family members die.
Anyone who has purchased insurance in China knows that Chinese insurance policies often have many terms, while American insurance policies are very general. In fact, this can provide more comprehensive protection for customers. Take the non-claim clause for example. The content of domestic life insurance basically requires three to four pages of paper to complete, while the United States only has three.
Just now we mentioned that the US life insurance industry has a "two years of non-defense" regulations. Specifically, it is:
If the customer does not inform the insurance company of the health risks that the insured has, then if the insured dies (or commits suicide) within two years, and the insurance company finds out the concealed information when handling the compensation, then unfortunately, the compensation is not established and only all premiums are refunded.
Once the insured dies (or commits suicide) two years after buying the insurance, even if the insurance company finds out that the insured has problems or has committed insurance fraud at this time, according to the "two-year non-defense" provision, the company can only pay compensation according to the original contract.
