In the end, whether insurance can play a role in tax avoidance and debt avoidance?

In fact, the role that insurance can play in tax avoidance and debt avoidance is not that everyone thinks that it can completely avoid taxes and debts. It can help everyone avoid some taxes on the basis of laws and regulations, but it is natural to repay debts, so if the debts incurred by themselves are purchased after the debts are indebted, they cannot be avoided with insurance.

For those who don't know much about insurance knowledge, you can take a look at this: Super Complete! Everything you need to know about insurance is here.

Next, I will give you a specific talk about how insurance allows us to avoid taxes and help us avoid debts.

1. Tax avoidance. The first is individual income tax, according to Article 4 of the Individual Income Tax Law of the People's Republic of China, insurance compensation is exempt from individual income tax.

The second is the inheritance tax that the state may introduce in the future. However, it is important to note that a beneficiary must be designated, and if it is a legal beneficiary, then you still need to pay taxes. Because the beneficiary is designated, the funds are equivalent to gifts from the insured to the beneficiary, but if they are the legal beneficiaries, the funds are still an inheritance and need to be taxed.

For those who don't know how to designate a beneficiary, you can take a look at this: How to designate an insurance beneficiary?

2. Debt avoidance. Here, in order to facilitate everyone's understanding, Senior Sister will give you a specific example. Suppose a father buys a term life insurance policy at a young age and designates the beneficiary as his son.

But more than ten years later, because of the poor management of the enterprise, it owed 500,000 yuan. Later, he died suddenly of illness. At this time, the policy that the father bought was worth 1 million, and the son took the claim information and successfully obtained the claim payment of 1 million.

When the creditor learned about it, he wanted his son to use the 1 million to pay off the debt owed by his father.

However, the son receives the claim as the designated beneficiary and does not need to pay the debt on behalf of the father.

To put it simply, the death benefit of the insured belongs to the property of the beneficiary and does not need to be used to offset the debts of the insured.

If you are more interested in the term life insurance mentioned above, the senior sister will also find a specific product for you, you can learn about: Tongfang Global Zhenai 2022 Internet term life insurance is coming? I'll talk about it after reading it.

Insurance has the function of tax avoidance and debt avoidance when the beneficiary is designated in the policy.

Article 24 of the Insurance Law stipulates that: "No entity or individual shall illegally interfere with the insurer's performance of the insurer's obligation to compensate or pay insurance money, nor shall it restrict the right of the insured or beneficiary to obtain insurance money." ”

For high net worth individuals.

How to effectively isolate their assets and prevent them from being eroded and shrinked has become the top priority.

Generally, the reasons for the shrinkage of assets are nothing more than business failure, investment failure, policy impact, marital risk, children's profligacy, and life risk. The risk is mainly focused on the confusion between corporate assets and personal assets, which directly leads to many business owners being burdened by the company, and the so-called "unlimited liability" protection does not work at all.

Business Insurance. It is a good risk management and control tool, regardless of the Insurance Law and the Contract Law

It is also the "Company Law", which has clear provisions for life insurance to determine its asset segregation function. From the perspective of asset management, different life insurance products can achieve different asset management purposes. For example, whole life insurance can amplify the insured amount of life insurance through the leverage effect, which can play the role of asset inheritance, tax avoidance and value preservation; Dividend annuity can play the role of asset isolation and on-demand supply through different settings of payment period and payment period.

Extended reading: [Insurance] How to buy, which one is better, teach you to avoid these insurance"pits"

Legal analysis: In the insurance industry, when it comes to large insurance policies, the most commonly heard word is tax avoidance and debt avoidance. Speaking of this, there is a legal basis, derived from the following clause:

1 .Life insurance policies are not included in bankruptcy claims – Company Law.

2 .Beneficiary insurance proceeds are not used to settle debts - article 73 of the Contract Law.

3 .The insurance policy is property that is not subject to seizure and confiscation - article 24 of the Insurance Act.

4 .Undisputed distribution of property - Article 61 of the Insurance Act.

5 .There is no need to pay taxes and cannot be pledged at will - Article 4 of the Tax Code.

6 .Life insurance companies may not be dissolved in bankruptcy - Article 89 of the Insurance Act.

7 .Life insurance purchased is personal property and is not recorded in the property of the spouses - article 18 of the Marriage Act.

Legal basis: Criminal Law of the People's Republic of China

Article 201 Where a taxpayer makes a false tax declaration or fails to make a tax declaration by means of deception or concealment, and evades the payment of tax in a relatively large amount and accounts for more than 10% of the tax payable, he shall be sentenced to fixed-term imprisonment of not more than three years or short-term detention and shall also be fined; where the amount is huge and accounts for more than 30% of the tax payable, a sentence of between three and seven years imprisonment and a concurrent fine is to be given. Where a withholding agent adopts the means listed in the preceding paragraph to fail to pay or underpay the tax withheld or collected, and the amount is relatively large, punishment shall be imposed in accordance with the provisions of the preceding paragraph. Where the conduct in the preceding two paragraphs is carried out multiple times, and it has not been addressed, it is to be calculated on the basis of the cumulative amount.

In the conduct of the first paragraph, after the tax authorities have issued a notice of recovery in accordance with the law, the tax payable shall be paid in accordance with the law, and the late payment penalty shall be paid, and criminal responsibility shall not be pursued; However, there is an exception for those who have received criminal penalties for tax evasion within five years or have been given two or more administrative penalties by the tax authorities.

Article 203 Where a taxpayer fails to pay the tax payable and adopts the means of transferring or concealing property, making it impossible for the taxation authorities to recover the tax in arrears, and the amount is between 10,000 and 100,000 yuan, he shall be sentenced to fixed-term imprisonment of not more than three years or short-term detention, and/or a fine of not less than one time but not more than five times the amount of the tax in arrears; where the amount is more than 100,000 RMB, the sentence is to be between three and seven years imprisonment and a concurrent fine of between one and five times the amount of taxes in arrears.

Article 204 Whoever fraudulently obtains export tax rebates from the State by means of false export declarations or other deceptive means, and the amount is relatively large, shall be sentenced to fixed-term imprisonment of not more than five years or short-term detention and shall also be fined not less than one time but not more than five times the amount of tax fraud; where the amount is huge or there are other serious circumstances, a sentence of between 5 and 10 years imprisonment and a concurrent fine of between 1 and 5 times the amount of taxes obtained by fraud is to be given; where the amount is especially huge or there are other especially serious circumstances, a sentence of 10 or more years imprisonment or indefinite imprisonment is to be given, and a fine of between 1 and 5 times the amount of taxes obtained by fraud or confiscation of property is to be given. Where, after paying the taxes, taxpayers adopt the deceptive methods provided for in the preceding paragraph to fraudulently obtain the taxes paid, they shall be convicted and punished in accordance with the provisions of Article 201 of this Law; Where the amount of tax obtained by fraud exceeds the part of the tax paid, punishment shall be given in accordance with the provisions of the preceding paragraph.

The subject's "insurance that can manage money and avoid taxes and debts" should refer to increased whole life insurance.

Increasing whole life insurance itself has a certain role in life insurance protection, and secondly, increased whole life insurance can also be used as a financial tool to play the function of compound interest and value-added.

For insurance, if you don't know much about it, then you might as well click into this article to learn in advance: [insurance] which is good, how to buy a good deal, and teach you to avoid these pitfalls of insurance.

Incremental whole life insurance actually refers to a whole life insurance that increases the sum assured by a certain percentage. The above statement of "being able to avoid taxes and debts" is not rigorous enough.

The main reason is that, according to the relevant laws and regulations, the death (or total disability) insurance benefits of increased whole life insurance are not personal income, so there is no need to pay individual income tax, and because the inheritance tax has not been levied in China for the time being, there is no tax avoidance.

As for debt avoidance, if the policyholder wants to achieve malicious debt avoidance through insurance, the insurance contract is also regarded as an invalid contract in law.

Considering the reason for the blindness, more detailed information about the increased whole life insurance, the senior sister has been sorted out to the following, interested partners can poke this article: What is the sacredness of the [increased whole life insurance] that can manage money and protect it? Is it worth starting?

If you are a more prudent investor, then increasing whole life insurance is indeed an option worth considering.

However, at the same time, it should be noted that the increased whole life insurance itself requires a long period of continuous compound interest appreciation before it is possible to see a more considerable return; If you are a small partner who pursues short-term income, you may wish to learn more about other financial insurance products on the market before applying for insurance.

Freshly baked! Don't miss out on the five high-yield incremental whole life insurance!

Generally speaking, if you mention insurance that can not only manage your finances, but also avoid taxes and debts, then you may first think of increasing whole life insurance.

Here the senior sister has prepared an introduction to the increase of whole life insurance, interested friends can take a look: what is the sacredness of [increased whole life insurance] that can manage money and protect it? Is it worth starting?

Since the sum insured of increased whole life insurance can increase according to a certain proportion of compound interest, and the cash value will also increase year by year, it has a certain financial management function.

In addition, if you designate a beneficiary when you apply for an incremental whole life insurance, then after the death of the insured, the death insurance benefit is paid to the beneficiary, which is the asset right of the person who is assigned to the deficiency, so even if the insured has a debt to pay off, the creditor has no right to demand that the asset be used to repay the debt.

It is precisely because the death insurance defense fund is directly given to the beneficiary, so it does not belong to the insured's estate, and naturally there is no need to pay inheritance tax.

However, it should be noted that there is no inheritance tax in China for the time being, but in fact, regardless of whether the country levies inheritance tax or not, as long as the property given to the family does not belong to the inheritance, there is no problem of paying inheritance tax.

On the whole, there are still many functions of increasing whole life insurance, not only to manage money, but also to avoid debts and taxes.

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Senior sister first answers: insurance can play a role in tax avoidance and debt avoidance under certain circumstances, but not all insurance has such a function. And does universal insurance have such a function? It depends on the actual situation.

1.Whether it can avoid debt.

As for whether tax can be avoided, if a person is liable for debts, it must first look at whether the insurance policy is directly related to the debtor.

Although the Insurance Law stipulates that "the right of the insured or beneficiary to obtain insurance benefits shall not be restricted".

However, in fact, taking the Notice on Strengthening and Regulating the Enforcement of Property Interests in Life Insurance Products Owned by the Judgment Debtor issued by the Zhejiang High Court as an example, the first point of the notice points out:

The policyholder's purchase of traditional, dividend-paying, investment-linked, universal life insurance products, survival insurance benefits that can be obtained according to the policy, or policy dividends paid in cash, or the cash value of the policy after surrender are all property rights of the policyholder, the insured or the beneficiary. When the policyholder, the insured or the beneficiary is the person subject to enforcement, the property right is the property of liability, and the people's court may enforce it.

In other words, if the debtor has taken out universal insurance, then the people's court may also enforce it. In this case, it is not possible to avoid debts by purchasing insurance products.

Don't understand what it means to be a policyholder, an insured and a beneficiary? Check out this article:

Before buying insurance, you must first understand these key knowledge points!

2.Whether it can avoid taxes.

The Individual Income Tax Law stipulates that life insurance claims are exempt from individual income tax. There are corresponding provisions in the insurance law, and the insurance beneficiary is not required to pay personal income tax and inheritance tax.

In this case, universal insurance does have a tax avoidance function.

If you're very interested in universal insurance, you can check out this list:

Top 10 [Worth Buying] Universal Insurance Points!

In general, it is natural to repay debts, and it is also the obligation of our citizens to pay taxes. When configuring insurance, you should follow the rules of the law and do not try to take the loopholes of the law, which is not advisable.

As long as you buy the product from the insurance company and write the beneficiary, it has the function of tax avoidance and debt avoidance, because it is protected by the Insurance Law.

As long as it is insurance, it can avoid tax debts.

Legal Analysis: Insurance cannot avoid inheritance tax, because inheritance tax has not yet been levied in the country. Insurance can be used to hedge debts, but it is necessary to distinguish whose debts are indebted.

According to the relevant laws and regulations, the insurer shall make a timely assessment after receiving the request of the insured or the beneficiary for compensation or payment of the insurance premium; Where the circumstances are complicated, an approval shall be made within 30 days, unless otherwise agreed in the contract.

Legal basis: Article 24 of the Insurance Law of the People's Republic of China After the insurer has made an assessment in accordance with the provisions of Article 23 of this Law, if it does not belong to the insurance liability, it shall issue a notice of refusal to compensate or refuse to pay the insurance money to the insured or beneficiary within three days from the date of verification, and explain the reasons.