So after immigration and settlement, what impact will the change in status have on the long-term life insurance purchased in the country? Can the claim be settled smoothly, and can the compensation be smoothly exchanged out of the country?

With the increasing number of international exchanges, it is no longer a rare thing to immigrate and settle overseas. So after immigrating and settling, what impact will the change in status have on the long-term life insurance purchased in China? Can the claim be settled smoothly, and can the compensation be successfully exchanged out of the country? Today we will talk about the impact of overseas immigration and settlement on domestic insurance.

1. If I immigrate overseas, will the policy still be valid?

There are many insurance products in China, especially Internet insurance products. When applying for insurance, they will specifically remind residents of Hong Kong, Macao and Taiwan and foreigners that they cannot apply for insurance.

In this case, if I immigrate overseas and acquire foreign nationality after taking out the insurance, will the policy still be valid?

The answer is yes. Immigrating overseas, acquiring foreign nationality or permanent residence are not the circumstances stipulated in the policy contract that will lead to the termination of the contract validity. Therefore, as long as the policy holder and the insured continue to fulfill their policy obligations (such as paying premiums normally), the policy will still be valid even if they have emigrated overseas.

2. Impact on domestic insurance claims

Since immigrating overseas will not cause the domestic policy to become invalid, if the insured is in danger abroad, can he normally obtain claims? This involves the issue of identification standards for insurance accidents.

1. Life insurance policy

Life insurance is a personal insurance product based on the survival or death of the insured person.

There are clear and relatively unified standards for whether a person is dead, and there is no inconsistency between domestic and foreign standards (because long-term disappearance is declared a legal death exception).

Therefore, if the insured dies abroad, as long as the corresponding death certificate and other documents are provided, it will not affect the claim application in the country.

2. Critical illness insurance policy

is different from life insurance. To apply for critical illness insurance claim , the first point is to determine whether the disease suffered by the insured meets the definition of disease agreed in the insurance contract.

The basis for the insurance company's claim settlement personnel to make judgments is the hospital diagnosis certificate and other medical records provided by the insured.

But not all hospitals and all doctors’ diagnoses can be recognized by insurance companies.

Some insurance companies require hospitals to "have a legal business license." There are no restrictions as to whether they are domestic or foreign, public or private.

And more insurance companies’ “approved medical institutions” require domestic secondary or above public hospitals.

Among these insurance companies, some (mainly joint ventures or large insurance companies) can accept medical records from overseas medical institutions as the basis for claims settlement, but some insurance companies clearly only accept medical records from domestic hospitals, which means that If the insured is out of danger abroad, he needs to return to China for re-diagnosis in order to successfully obtain compensation.

3. Long-term accident insurance

In addition to life insurance and critical illness insurance, another type of product that may be affected by overseas immigration is long-term accident insurance. Accident insurance mainly provides death protection and disability protection.

When applying for accidental disability insurance, applicants need to provide a disability rating certificate issued by a legal domestic appraisal agency in accordance with the "Personal Insurance Disability Assessment Standards and Codes". It is obviously difficult to meet this requirement overseas.

3. How to export insurance claims

If you have successfully applied for a claim in China, under the current policy, the insurance company cannot directly pay the insurance compensation to the beneficiary's overseas account, so the insurance company usually pays the insurance claim to the beneficiary. Domestic account.

So can this compensation be kept in China and cannot be transferred to the beneficiary’s overseas account? If I want to transfer to an overseas account, will I be subject to foreign exchange controls?

There are two issues involved here:

1. Who does the foreign exchange control system apply to?

The so-called foreign exchange control refers to the provisions of Article 9 of the " Personal Foreign Exchange Management Measures", "an annual total amount shall be implemented for personal foreign exchange settlement and domestic personal foreign exchange purchase". manage".

Domestic individuals refer to Chinese citizens who hold People’s Republic of China resident identity card, military identity document, or armed police identity document.

Therefore, the foreign exchange control system does not apply to Hong Kong, Macao, Taiwan or foreign beneficiaries.

2. Is insurance money a current account or a capital account?

According to the "Personal Foreign Exchange Management Measures", personal foreign exchange business is divided into current account personal foreign exchange business and capital account personal foreign exchange business based on the nature of the transaction. However, the law does not clearly define what kind of foreign exchange business the cross-border transfer of insurance funds should belong to. Refer to the State Administration of Foreign Exchange ’s determination of domestic residents purchasing life insurance and investing in dividend insurance abroad. The cross-border flow of insurance funds should be classified as personal foreign exchange business under the capital account.

According to the provisions of Article 26 of the "Measures for the Administration of Personal Foreign Exchange", "the overseas transfer of legal property of overseas individuals within the country shall be handled in accordance with the relevant foreign exchange administration regulations on the external transfer of personal property."

The Interim Measures for the Administration of the Foreign Exchange Sales and Payment of External Transfers of Personal Property divide the external transfer of personal property into two situations: immigration property transfer and inheritance property transfer.

According to the provisions of the Insurance Law, insurance benefits for which a beneficiary is designated do not belong to inheritance. Therefore, the death insurance benefits obtained by foreign beneficiaries cannot be applied to the transfer of inherited property, but should be handled in accordance with the transfer of immigration property.

Immigration transfer must apply for the entire amount of property to be transferred out of the country at one time and remit it step by step.

The amount that can be remitted for the first time shall not exceed half of the total property transferred. One year after the first remittance, no more than half of the remaining property may be remitted. Two years after the first remittance, the entire remaining property may be remitted. All properties applied for transfer with an equivalent value of less than 200,000 yuan (including 200,000 yuan) can be remitted in one go after approval.

For example: Mr. Li insured himself a whole life insurance with an insured amount of 10 million, and designated his child Xiao Li as the beneficiary. Xiao Li studied abroad, stayed abroad for development after graduating from university, and obtained foreign nationality in 2017. In 2018, Mr. Li unfortunately passed away, and the insurance company paid the insurance money to Xiao Li in accordance with the contract. Since Xiao Li lives abroad and has no plans to return to China for development, he hopes to remit the insurance money abroad.

According to regulations, Xiao Li needs to submit written application materials to the foreign exchange bureau at the place of residence before immigration, and apply for a one-time transfer of 10 million insurance funds out of the country. Since the transfer amount exceeds 500,000, it needs to be reported to the State Administration of Foreign Exchange for approval after the initial review by the local foreign exchange bureau. After approval by the State Administration of Foreign Exchange, the local foreign exchange bureau will issue an approval reply letter and approval document to Xiao Li. Xiao Li then takes the approval document to the designated bank to handle the procedures for purchasing and paying foreign exchange.

For the first time, Xiao Li can remit up to 5 million yuan to an overseas account. After one year, Xiao Li can continue to remit half of the remaining property (2.5 million yuan). After two years, Xiao Li can remit all the remaining money. out. In other words, it would take Xiao Li nearly three years in total to remit all the 10 million insurance money overseas.