What does insurance trust mean?

Insurance trust is a financial service product that combines insurance and trust. The applicant signs an insurance trust contract with the trust institution. When the insured dies and claims are settled or the insurance premium is paid due, the insurance company will pay the insurance premium to the trustee, who will manage and use it according to the trust contract, distribute the trust property to the beneficiaries in the way agreed in the trust contract, and deliver the remaining assets when the trust terminates or expires.

Insurance trust is a management service tool in family fortune. For the purpose of wealth protection, inheritance and management, the client transfers the relevant rights of the life insurance contract, such as the right to benefit from death, the right to benefit from survival and the right to pay dividends, as well as the corresponding benefits, such as the death benefit, the survival benefit and the policy dividend (if any). And when the payment conditions agreed in the insurance contract occur, the insurance company will directly transfer the corresponding funds into the corresponding trust account according to the insurance agreement. The trust company manages, uses and disposes of the trust property according to the trust contract signed with the client, so as to realize the continuation and performance of the client's will. Insurance trust is an interdisciplinary trust service that combines insurance and trust affairs management services.

Although the family economy is rich, individuals are responsible for purchasing life insurance to avoid family economic risks, and they can leave a good living allowance for their families after the insured's accident, but we still can't rule out the situation that the insured's intention can't be realized and the insurance beneficiary can't really enjoy the insurance benefits due to some human factors.

When the insurance beneficiaries are minors, mentally retarded people or the elderly, insurance trust is especially suitable for these people, because they have weak working ability, difficult life and weak ability to arrange and use funds, and are easily used by some people with ulterior motives. When there are many beneficiaries, or the insured has special funds (such as public welfare), the insured can also use the insurance trust. For example, when purchasing life insurance, the insured should have been able to estimate the economic security that the beneficiary may need, and the trust benefits that the beneficiary of the insurance trust can obtain in the future can be determined through the trust, and the extra money can be designated for public trust.