1. Low threshold of insurance trust: At present, the threshold of domestic family trust is relatively high, and millions of funds can be used for trust. However, insurance has a leverage effect, and the amount of insurance can reach the threshold of trust, which reduces the threshold of trust to some extent.

2. Break through the beneficiary restrictions: the designation of trust beneficiaries is flexible, not limited to immediate family members, and even includes the unborn third generation.

3. Flexible payment arrangement: The trust can flexibly set the payment plan according to family needs, so as to determine the payment amount and payment time and effectively allocate funds.

4. Debt isolation: Insurance trust makes insurance money independent of property and does not participate in the beneficiary's debt repayment or property division.

5. Secondary beneficiaries can be designated: secondary beneficiaries can be designated. If the primary beneficiary does not meet the payment conditions, the secondary beneficiary will distribute the remaining trust property equally to prevent the property from flowing out.

Second, the disadvantages of insurance trust

1. Property is not independent: before insurance claims, the policy property will be affected by the policyholder's debt, marriage division, etc., and the wealth preservation function is weak.

2. Leverage has limitations: the leverage of domestic policies is relatively weak, and it still needs more self-owned funds to support it, which is not suitable for ordinary families. At the same time, the interest rate of policy loans is high, and there will be no small interest pressure to amplify leverage with policy loans.

insurance trust

Insurance trust is a kind of management service tool in family wealth, which means that the client regards the related rights [such as death insurance, survival insurance and dividends (if any)] and corresponding benefits [such as death insurance, survival insurance, policy dividends (if any)] and funds (if any) of life insurance contracts as trust property, and regards them as insurance contracts.

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 a cross-disciplinary trust service that combines insurance and trust affairs management services, not a wealth management product.