However, if China people buy insurance in the United States, their customers have to bear much greater risks than at home, thus losing the meaning of insurance. Therefore, it is recommended not to buy insurance in the United States.
Five risks of American insurance:
Legal aspects: First of all, domestic residents need to go to the United States to apply for insurance and sign relevant insurance contracts. If you apply for an American insurance policy in China, it is an illegal "underground insurance policy" and is not protected by mainland laws or American laws. Secondly, American laws apply to mainland residents who apply for American insurance. In case of dispute, the insured shall conduct rights protection litigation according to American law. Compared with the mainland, the cost of legal proceedings in the United States is higher, and it may face higher time and expense costs.
Foreign exchange: insurance policies, claims and insurance benefits purchased by mainland residents in the United States are settled in US dollars and other currencies, and consumers are required to bear the risk of currency exchange.
Income: The purchase of life insurance and investment return dividend insurance by mainland residents abroad belongs to financial and capital transactions. At present, the foreign exchange management policy has not been opened, and there are certain policy risks.
Surrender: American insurance is completely market-oriented and there is no "guarantee" setting. Once the insurance company goes bankrupt, the insured is likely to lose everything. If you want to surrender midway, the insured can only get the cash value of the policy. American regulators have no specific requirements on the cash value of insurance products. The cash value of most long-term policies is very low at the beginning of the policy, even zero in the first two years.
Specific terms: American insurance product terms are in English, and their expressions are different from those in China. The insured should read the insurance clauses carefully to avoid contract disputes caused by inaccurate understanding of the clauses.
Advice for everyone:
Buying insurance means giving the premium to the insurance company, and the insurance company takes the risk away. Our original intention of buying insurance is to avoid risks, hoping that someone can cover for us when risks arise. Insurance can make unfortunate people happy, and it can also make happy people happy all the time.
If you buy American insurance, do these meanings of insurance still exist?
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.