By investing your assets in offshore tax havens where there are almost no taxes, your money can grow at a high rate of return. This is also true for life insurance, and many people choose to invest in life insurance as an offshore investment.
Sun Life is one of the most famous offshore insurance companies. Sun Life Hong Kong accepts all kinds of foreigners, and you can buy life insurance from Sun Life Hong Kong.
However, there are different types of life insurance, and you need to understand in advance what kind of asset management will be possible.
So, I will be explaining not only the reviews and reputation of using Sun Life Hong Kong to invest offshore but also the actual plan that I have purchased.
Table of Contents
- 1 Why Life Insurance at Sun Life Hong Kong Is a Good Asset Management
- 2 Sun Life Is a Highly Rated, Very Huge Life Insurance Company
- 3 Travel to Hong Kong Is Required, and Medical Examination Depends on Premiums
- 4 You Should Manage Your Assets with Offshore Insurance from Sun Life Hong Kong
Why Life Insurance at Sun Life Hong Kong Is a Good Asset Management
There are many reasons to use life insurance. One of the reasons is asset management.
Offshore insurance is a way to double your assets in 20 years and quadruple them in 30 years. Since there are no restrictions on where they invest, they can manage your assets freely, and the money will be larger.
Also, since it is an offshore region, there is no tax on the money you make from your investment. Therefore, the yield is excellent, and your money will grow efficiently.
In other words, the conditions are better than signing up from Sun Life in other countries, and it is easier to increase your money through asset management.
Details of the Simulation Contracted with Sun Life
Even though asset management can increase your money, it is hard to get an image of how much money you can make unless you are given a specific example. So here is a simulation of my contract with Sun Life Hong Kong.
I have a life insurance policy with Sun Life Hong Kong. I also purchased Sun Life’s offshore insurance for my daughter when she was two years old. This is so that when my daughter grows up in the future, I can give her the money I have invested.
The simulation was as follows (contents of my daughter’s life insurance).
You can see that I paid a total of US$30,873 over 5 years and then stopped paying. So, let’s think of it as a life insurance policy that I paid $30,873 in premiums.
The “Total” in the red box is the surrender value. This is the money that will be returned to my daughter when she cancels her life insurance policy.
After 20 years, the surrender value is $70,545, and after 30 years, it is $129,091; the $30,873 has increased 2.3 times after 20 years and 4.3 times after 30 years.
Also, this life insurance is a whole life insurance policy, which means that my family will always receive the death benefit. The maturity date is 100 years old, and when my daughter turns age 65, you notice that the surrender value has increased to $950,244.
This is a huge increase in money. I currently have no life insurance in my home country, only overseas life insurance. This is because foreign life insurance has better conditions.
Death Benefits Continue to Grow with Asset Management
Sun Life Hong Kong is a life insurance company. Therefore, the life insurance policy that my children and I have also included a generous death benefit. In the event that something happens and I (or my daughter) die, a high death benefit will be paid out.
This is the same life insurance document as shown before, and the death benefit is as follows.
For example, after 20 years, the death benefit would be $428,404. In the 30th year, the death benefit would be $609,938. For reference, the death benefit will continue to increase as follows.
- Age 65: $1,791,727
- Age 75: $2,447,018
- Age 85: $3,387,915
- Age 95: $4,738,216
- Age 100: $5,490,516
Even if you don’t win the lottery, you can leave millions of dollars in assets to your children or grandchildren with as little as $30,000.
Sun Life Is a Highly Rated, Very Huge Life Insurance Company
Even though there is a life insurance company that offers such excellent asset management, if Sun Life is a shady company, it is not worth investing in.
There is no problem with this; Sun Life is a huge life insurance company. Headquartered in Toronto, Canada, Sun Life is a historic life insurance company that was founded in 1865 and has branches all over the world.
One of its branches is in Hong Kong, and many people buy life insurance from Sun Life Hong Kong, which is registered in the offshore region.
Sun Life is also highly rated by the world’s leading rating agencies, as shown below.
- Standard & Poor’s (P&P): AA- (Very Strong)
- Moody’s: Aa3 (Excellent)
This rating is better than in developing countries. Also, the rating is higher than the top life insurance companies that exist in developed countries such as Japan and Germany. In other words, Sun Life is larger and safer than the life insurance companies that exist in your country.
It is also listed in Toronto (TSX), New York (NYSE), and the Philippines (PSE), making it a globally well-known company. Therefore, there is no need to worry about risks and safety.
-Why Sun Life Hong Kong?
Sun Life is available in many countries. However, many of them can only be purchased by people who live in the local country. For example, Sun Life in the Philippines allows only residents of the Philippines to purchase life insurance. The investment currency is the Philippine peso, and the money can only be received by a Philippine bank.
Sun Life in Hong Kong, on the other hand, allows people who do not live in Hong Kong to purchase life insurance from Sun Life. Also, the currency of investment is in US dollars, and you can choose any bank in the world to receive your money. Even if the investment currency is in US dollars, you can receive your money in your country’s currency.
For this reason, it is generally recommended to purchase life insurance with Sun Life Hong Kong, among other Sun Life Group companies.
Life Brilliance, a Whole Life Insurance Policy, Is Well Known
What are some of the life insurance products that you should purchase from Sun Life Hong Kong? Life Brilliance, which is used as whole life insurance, is one of the most famous. The life insurance I mentioned earlier that my daughter and I have is also Life Brilliance.
Life insurance that provides lifetime coverage until death is whole life insurance. Therefore, we have a 100% chance of receiving the death benefit. You can buy it to get a death benefit, or you can use it as offshore insurance to manage your assets.
If you buy it, your money will keep growing by itself through asset management. Also, Life Brilliance is a whole life insurance policy, so you can surrender your life insurance at any time you want and receive the surrender value.
You can cancel the policy when 20 or 30 years have passed, or you can keep it and wait for your money to grow more. Life Brilliance has the advantage that you can leave it alone, and your money will continue to grow.
Annuity Insurance Victory and Vision Also Widely Used
Also, for life insurance, consider the option of foreign annuity insurance. While whole life insurance is a life insurance policy that provides coverage until death, Victory and Vision are life insurance policies that allow you to create an individual annuity by receiving a lump sum or installments.
In overseas annuities, there is no high death benefit like in whole life insurance. Therefore, even if you die, your family will not receive a large sum of money, but you can receive money for your retirement in the future.
Think of the difference between Victory and Vision as follows.
- Victory: An annuity that pays out money in a lump sum.
- Vision: An annuity that pays out money in installments.
Because there is no high death benefit, the surrender value of Victory is higher than that of Life Brilliance. This means that it is easier to increase your money through asset management. Therefore, if you do not need a high death benefit, Victory is a better choice than Life Brilliance.
Also, if you want to receive your foreign annuity insurance in installments instead of a lump sum, use Vision. Since you will receive the money in installments, the speed of asset management will be slower than with Victory. However, you will receive many times more money back later than you paid.
Travel to Hong Kong Is Required, and Medical Examination Depends on Premiums
On the other hand, there are some disadvantages of Sun Life Hong Kong. One of the biggest disadvantages is that you have to travel to Hong Kong.
In many cases, offshore investments can be contracted without traveling to the tax haven country. However, in the case of life insurance, you need to travel to the country.
Also, since it is a life insurance policy, you may need to take a medical examination in some cases. Whether or not a medical examination is required depends on your age at the time of contract and the premium.
For example, if you are 45 years old or younger and you sign up for Life Brilliance, you will need a medical exam if your death benefit exceeds US$500,000.
Roughly speaking, if you pay more than US$200,000 in premiums, you will need a medical exam. However, if you are investing less than that amount, you do not need a medical examination.
You Can Freely Choose the Total Amount of Payment and the Period
In my case, I invested about $30,000 in a lump sum, but you are free to choose the total amount of premium payment. For example, you can pay a total of $10,000. It is also possible to pay a premium of one million dollars.
The payment period is also flexible. You can choose from the following payment periods.
- Lump-sum payment (full-term payment in advance)
- 5-year payment
- 10-year payment
- 15-year payment
- 20-year payment
You can pay monthly or annually. You can also pay the premiums in advance for the entire term in a lump sum.
For your information, even if you purchase the same life insurance policy with a total value of $10,000, the investment efficiency will be much greater if you pay it in a lump sum rather than in installments (such as 10 years). In other words, the lump-sum payment is more efficient in increasing your money. This is because you invest a lot of money at the beginning, which makes it easier to grow your investment profit.
Early Cancellation Causes Loss of Principal
Although the Sun Life Hong Kong life insurance policy has many advantages and good reviews, there is another disadvantage. That is, if you surrender your policy early, you will surely lose your principal and incur a loss.
As you can see from the simulation of the life insurance policy that I purchased, the surrender value of the policy will exceed the premiums paid after 12 or 13 years. In other words, if you surrender earlier than that, you will lose your principal.
It is true that it can double in 20 years, quadruple in 30 years, and so on. However, in the case of asset management with life insurance, it is necessary to leave it alone for a certain number of years.
However, the same is true for life insurance in your home country, which will lose its principal if you cancel it early. Moreover, it is not as efficient as asset management in tax havens.
Although it is a disadvantage to lose the principal if you surrender early, it is less disadvantageous compared to life insurance in your country.
You Should Manage Your Assets with Offshore Insurance from Sun Life Hong Kong
For many people, the best life insurance is not in your country. It can be found in tax havens such as Hong Kong.
Purchasing life insurance in an offshore region can be more advantageous than managing assets in your home country. Also, if something unexpected happens to you, your family will be able to receive a death benefit, and the death benefit will be huge.
If you have a life insurance policy in your country or use any other savings investment, you should cancel it now and buy a life insurance policy from Sun Life Hong Kong so that you can have more money in the future. As for me, I don’t purchase insurance policies in my home country, instead, I use life insurance policies in tax havens.
Sun Life Hong Kong is a huge company with excellent reviews and has been rated as safe by global rating agencies. It is a good idea to use such an insurance company to start managing your assets.