The Study On The Introduction Of Life Insurance Trusts In China

As a new type of financial products, life insurance trust plays an important role infinancial planning. After the launch of the life insurance trust, it is running very well inseveral developed countries and regions in the world. As the insurance benefits will bepaid after the death of the insured, it is uncertain that the money will be used to take careof their own children. As the combination of life insurance and trust, the trustee willmanage the benefits after the death of the insured, which can effectively preventbeneficiaries from squandering the money or guardian coveting insurance money. Thiswill achieve the purpose of the insured up to the hilt. In addition to this feature, lifeinsurance trust has the function of tax saving and can protect the assets of the insured,which other financial products do not have. With the development of economic andinsurance awareness, the demand for the life insurance trust began to shape up eventhough China does not have it. In order to launch China’s life insurance trust productssuccessfully, it is in great need that we should study it comprehensively.Starting from the basic theory of the trust system, the first part of the paper introducedthe meaning, origin and classification of the life insurance trust separately as well ascomparing with similar insurance products. This part focused on comparing the conceptof Insurance benefits trust with Insurance Trust.The second part of the article discussed the necessity and feasibility of launching lifeinsurance trust in China, which described the need for life insurance trust products andthe ability to launch life insurance trust products in our country. Through the analysis ofmacro and micro aspects, China has the ability to launch the life insurance trust products,and it will benefit the insurance business, trust business and consumers. The third part ofthe article studied the Life Insurance Trust in different countries and regions at home andabroad. By comparing the mode of life insurance trust in United States, Japan, the UnitedKingdom and Taiwan, it enlightened the design ideas of China’s life insurance trust.On the basis of first three part of the paper, the fourth part came up with the mode，business entity and contract parties of life insurance trust in China. This part alsodiscussed the problems that may arise in the introduction of the life insurance trustproducts from the macro-environment to the microscopic principal and gives some suggestions to solve these problems.