Notes on Mainland Insurance Purchases in Hong Kong
Presumably, everyone must be concerned about whether there is a risk in Hong Kong insurance, and then, Sanwen will help us sort out the potential risks that we need to figure out when we buy Hong Kong insurance.
1.Legal risks.
Mainlanders buy Hong Kong insurance, not protected by inland laws, not safe" This should be the most common saying we have heard, so what does it actually look like?Let's first take a look at the Hong Kong law "Hong Kong Law Insurance Companies Ordinance (Chapter 41 of the Laws of Hong Kong) Insurance companies authorized in Hong Kong, it is legal to recommend life insurance in Hong Kong, whether it is sold to Hong Kong locals, foreigners or Chinese mainland persons. The place of signing of the insurance policy is legal in Hong Kong, and the place of signing is illegal outside Hong Kong. In fact, when mainlanders go to Hong Kong to buy insurance, they buy insurance from Hong Kong insurance companies, so, indeed, they are not protected by mainland laws, but they are protected by Hong Kong laws, but it should be noted that no matter who the sales object is, if it is signed outside Hong Kong, it is an illegal policy. Therefore, if we buy Hong Kong insurance in the mainland, it is an "underground policy", that is, it is not protected by the laws of the mainland, nor is it protected by the laws of Hong Kong.
2.Dividend income.
The use of insurance funds is mainly in fixed income investment and equity investment, the proportion of fixed income investment is high, the guaranteed income can be higher, and the expected return on dividends will be lower, and the proportion of equity investment is high, the expected return on dividends can be higher, but the guaranteed income will be lower, the reason why the guaranteed income of Hong Kong dividend insurance is so low, in essence, is that Hong Kong insurance funds are mainly concentrated in equity investment. The proportion of equity assets is high, that is, the investment situation is good, we can get good returns, of course, in the middle, the risk is also coexisting, so we have to ignore the problem is:
Clause. 1. In the first 20 years, the expected total rate of return on dividends of Hong Kong wealth management insurance is actually not high, and only if it is held for more than 20 years, it can have a good return, as for the declared income as high as 6%+, it is necessary for the insurance company's dividend fulfillment rate to be maintained around 100% for more than 60 years, in order to truly realize the rate of return.
Clause. Second, the above income is expected dividend income, does not represent the actual income, if the dividend fulfillment rate is only 50%-70%, then our actual income, will be greatly discounted.
Clause. 3. In the past 30 years, in fact, except for the 08 financial crisis, the global economy has been in a relatively stable state, so Hong Kong's wealth management insurance, which is more open to the use of insurance funds, can also obtain better returns, so as for the future, can the global economy still be in a relatively stable state as in the past?It's up to us to think about it
3.The cost of the purchase.
As we mentioned earlier, when you buy Hong Kong insurance in the mainland, only the policy signed locally in Hong Kong is a legal policy and is protected by Hong Kong law, so if you are not in Hong Kong and want to buy Hong Kong insurance, you need to go to Hong Kong, open a Hong Kong bank account, and convert the money deposited into US dollars or Hong Kong dollars. Since we need to go to Hong Kong to sign the contract, on the one hand, we need our own time cost, and on the other hand, we also need some basic costs, such as round-trip travel expenses, hotel expenses, etc. If you are not in Hong Kong, the total investment is less than 30,000 US dollars, it is not very cost-effective to go to Hong Kong, of course, if you have a relatively high insurance amount, compared with the domestic income of capital and interest, you want to bet on Hong Kong's higher expected dividend income, you can consider choosing a good Hong Kong financial insurance.
The system is more complete and the guarantee is complete
Hong Kong is a world-famous international financial center, ranking third in the world, second only to New York and London, Hong Kong's insurance companies are basically more than 100 years old, and our mainland insurance companies are only twenty or thirty years at most, followed by as a world-renowned international financial center and the insurance industry is one of Hong Kong's several pillar industries, Hong Kong's financial laws are relatively sound, and secondly, because Hong Kong's lawyers are very picky, Hong Kong's insurance terms need to be formulated quite rigorously. In addition, in the contemporary society, information consulting technology is increasingly developed, and major insurance companies in Hong Kong will constantly update their products to ensure that they can better attract customers, which leads to fierce competition among Hong Kong insurance companies. There is certainly nothing to say about service and competition.
Good reputation & good profitability:
Because Hong Kong's insurance companies basically have more than 100 years, they attach great importance to their own reputation and reputation, and many have experienced World War I, World War II and international financial crises, many well-known international companies, and some well-known financial companies have experienced these emergencies and suddenly collapsed, but many insurance companies in Hong Kong not only did not fail, but they can develop very well after these things, but domestic insurance companies are only twenty or thirty years at most, and have experienced financial crises and other major events, and some may even be unable to withstand these sudden events, so relatively speaking, the profitability of insurance companies in Hong Kong will be better.
For life insurance, Hong Kong** is very strict in the supervision of the Hong Kong insurance industry, and the Hong Kong Insurance Commissioner's Office will require Hong Kong insurance companies to maintain 80% of the value of the policy's assets in Hong Kong in order to better protect the interests of policyholders. If a life insurance company in Hong Kong is not doing well and is on the verge of crisis, Hong Kong** will step in and allow a financially strong insurance company to merge with the insurance company to protect the life insurance policy in Hong Kong** from loss. Hong Kong** is also in the process of setting up Hong Kong Life Insurance Reinsurance** to guarantee every life insurance policy in Hong Kong**.