| China’s economy has embraced high-speed and steady development of economy in recent years, citizens’ individual private wealth has increased significantly along with this upspring. For value maintenance and appreciation, handing down of property as well as favorable security of descendants’ living, financial products with corresponding functions are becoming more popular. Life insurance trust, as a financial tool, has combined fundamental functions of both trust— "trusted by customers, finance for customers" and life insurance— providing risk security, therefore, it can comprehensively resolve reasonable arrangements and investment operation of premiums. However, in spite of its international popularity, yet life insurance trust has not been applied in China. Under this circumstance, based on the overpowering public need of personal financial planning nowadays, it can be estimated that life insurance trust has a very large potential market, possibility of exploration and considerable profitability in China, The article firstly summarizes relevant content of financial planning and life insurance trust, by comparing merits and demerits of taking life insurance, trust and life insurance trust as financial tools via research methods including contrastive analysis and multi-disciplinary cross-over analysis, superiority of the life insurance trust is emphasized. Then the article illustrates the overwhelming functions of life insurance trust in aspects including saving, investment & financing and tax evasion by virtue of case analysis method. Notwithstanding China is so far short of life insurance trust products in its financial market while such products are confronted with fierce competition in the financial markets of various countries, at the present, with China’s strengthening opening strategy and increasing call for mixed operation of finance, it is not only necessary but also feasible to schedule life insurance trust in personal financial plan reasonably. Besides, it is also worthy of studying and probing into how to fully play the role of this product. On account of this purpose, the article has analyzed feasibility and necessity of promoting life insurance trust as a financial tool in China by proceeding with the conditions of implementing the product in China. The analysis is supported by referring to document literatures as well as relevant data. Through probing into and reflecting on matters that may arise during promotion, the article offers proposals respectively for relevant matters at the end, believing that the state, industry and business entities shall enhance their support in promoting life insurance trust in China as well as provide favorable social and market circumstances for the development of the product. The article also probes into reasonability of adopting the mode of revocable others-benefit premium claims in promoting life insurance trust in China, moreover, it also gives a brief illustration of principles which shall be followed in taking life insurance trust as a planning tool by combining features of financial planning. |
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