Safety risks exist at all times, and unintentional mistakes may cause harm to others. Therefore, purchasing insurance is an important aspect of daily life for new immigrants in the U.S. In this issue, "Immigrant Life" continues to provide the essential knowledge required for new immigrants to purchase insurance in the U.S.:
1. The purpose of purchasing medical insurance when traveling to the U.S.
Many large insurance companies in the U.S. offer travel accident insurance. It is primarily used for emergency room visits in the event of accidents such as falls or injuries, and the premiums for this type of insurance are very low.
2. The proportion of income Americans spend on insurance
The financial planning approach of Americans differs from that of Chinese individuals, and there is a generally accepted formula they follow. First, maximize contributions to retirement accounts such as 401(k) and IRA. If there are children, education funds should also be established, and only then is investment-grade life insurance considered. Pure life insurance is necessary, but investment-grade life insurance is generally purchased only after retirement and education funds have been fully funded.
3. Whole Life Insurance in the U.S.
There are many options for permanent insurance in the U.S. A more traditional type is "Whole Life." Few people buy this type of insurance now because the interest rate environment is unfavorable; the fixed return rate of 3%-5% is relatively low, and the conditions are stringent, requiring monthly payments. If you miss a single monthly payment, the entire policy may be voided.
Another type is called "Universal Life," which is an investment-grade insurance policy that comes in Index and Variable forms. Index universal life insurance offers a floor and a cap. Each index fund is different; while you may lose out on some of the best performance periods, you also avoid some of the worst, which is why it is very popular now.
Variable universal life insurance involves investing directly in the stock market, where you choose different funds yourself.
4. Insurance as a tax-advantaged strategy for Americans
Life insurance can definitely be tax-advantaged. As long as the policy is active, the money you borrow against it in the future or the death benefit left for your family can be tax-free. When Chinese individuals invest in the U.S. stock market by buying stocks or mutual funds, they must pay taxes on their earnings. However, money placed in a life insurance policy, if well-planned and well-managed, may remain tax-free for a lifetime.
5. Claims processing for U.S. medical insurance purchased in China
If it is travel accident insurance, you can handle it while in the U.S. When you go to the hospital, you only need to show your insurance card; you will pay a portion of the medical expenses yourself, and the insurance company will pay the rest.
As a leader in the immigration industry with 18 years of experience, WorldWay Group has a comprehensive team for settlement and support services. Upon your first landing in the U.S., the WorldWay customer service center will provide complete landing and settlement assistance, including: arranging airport pick-up for your first entry; assisting with bank account opening procedures; assisting with applying for a Social Security card; assisting with hotel reservations; assisting with booking flights to the U.S.; assisting in contacting driving schools and providing information on driver's license exams; assisting with moving services; and assisting in contacting real estate agents for rental or property purchase matters, etc.
WorldWay also regularly provides high-quality services to its long-term clients. Based on client needs, we regularly host seminars on various topics such as U.S. real estate, education, lifestyle, financial investment, medical insurance, financial planning, and social welfare. WorldWay will support you throughout your immigration journey. Consultation Hotline: 400-138-2929
Disclaimer: Some of the material in this article is sourced from People's Daily Online - Overseas Edition, and the copyright belongs to the original author. The information or viewpoints in this article are for reference only. If there are any copyright issues, please contact the original author and us.