Li Ka-shing, a rich man, once said, "People say that I have money and a lot of wealth. In fact, my real personal wealth is to buy enough life insurance for myself and my loved ones. " Li Ka-shing also said that he would buy 100 million yuan of life insurance for all children, so that they would be billionaires from birth. In fact, a person's existing material wealth can't really satisfy him. The most real thing is the prediction and control of unknown risks.
Rich people buy insurance not because they are willful, but because they have a long-term vision. So are they willing to pay a lot of money for insurance just to give themselves a guarantee? Not exactly. In fact, the rich buy insurance for several reasons:
1. Reasonable tax avoidance
At present, China's current laws stipulate that it is not necessary to pay personal income tax to receive insurance benefits and claims, including death compensation, car damage, medical insurance, etc. And the dividend income of dividend insurance is temporarily exempt from personal income tax. From the experience of some developed countries and regions, life insurance also has the function of distributing inheritance. In foreign countries, the rich can effectively avoid interest income tax and inheritance tax caused by the seizure of a large amount of funds and property by purchasing high life insurance, and the unique way of insurance designating beneficiaries can effectively avoid inheritance disputes. For the rich, it is a wise choice for themselves and their families to plan their wealth as soon as possible.
2. Avoiding investment risks is easy to achieve.
Although rich people have a lot of money at their disposal, once a business or project is done, it will cost tens of millions, and the investment and operation risks are very huge. Buying a high insurance policy is to free some funds from this risk first, so as to avoid losing all their money when the investment fails. When assets are frozen or forced to auction, the policy loan function can be the best realization tool to solve the financial difficulties at critical moments.
3. Not included in the asset mortgage.
It is common for the rich to fail in investment and eventually go bankrupt. Maybe one day, you are still full of scenery, and the next day, you may lose everything because of a decision. If you have bought a large amount of insurance before, you may be able to leave a way out for yourself and your family, because when all the property is frozen or even auctioned, life insurance policies cannot be frozen and auctioned. The insurance premium collected by the insured is protected by law and is not included in the policy loan function of the asset repayment procedure.
4. Inheritance of wealth
Although the wealth accumulated by rich people through their life-long efforts is destined to be passed on to their children, no one wants their children to become pleasure-seeking parasites. By buying the assets of the insured rich, they can pay the next generation in the form of an annuity, which lasts from childhood to old age. Doing this will kill two birds with one stone, not only without worrying about the property being squandered in a short time, but also cultivating the ability of the rich second generation to live independently and ensuring their quality of life. Insurance is not to help us make money, but to keep the money we earn. The first is to use insurance to transfer risks, minimize losses and not lose the wealth we earned. The second is to transfer the wealth we earned to insurance companies, lock in wealth with insurance products, and avoid some legal disputes, that is, creditor's rights and debts disputes. Because if the insurance product is the designated beneficiary, it will be used as insurance indemnity to the beneficiary in the future, and the beneficial right has priority over the creditor's right, so that debt disputes can be avoided and the purpose of wealth preservation can be achieved.
The preservation and inheritance of assets by insurance are protected by national laws.
1, Article 34 of the Insurance Law: An insurance policy is property that will not be seized and confiscated!
2. Article 04 of the Tax Law: Insurance is tax-free and cannot be mortgaged at will!
3. Article 89 of the Company Law: A life insurance company cannot go bankrupt or be dissolved!
4. Article 18 of the Marriage Law: Buying life insurance belongs to personal property!
5. Article 6 1 of the Insurance Law: An insurance policy is an undisputed property distribution!
6. Article 73 of the Contract Law: Insurance money shall not be used to pay off debts! Insurance is a good tool to really help families preserve their assets, lock in their wealth, avoid debts and avoid taxes, and benefit three generations!
Of course, life insurance and serious illness belong to life insurance.
Whole life insurance is an insurance that pays death insurance according to the insured amount, with the life span as the target.
Life-long critical illness insurance is the insurance that is paid according to the insured amount when the major diseases agreed in the contract occur.
The difference is that when a serious illness occurs in the critical illness insurance, critical illness insurance gold can be paid in advance.
If there is no serious illness, the beneficiary will receive the insurance amount like life insurance after his death.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.