In family economic planning, many people consider the impact of accidental death on the family. In particular, if the breadwinner of the family dies unexpectedly, his family members may face great financial pressure. In this case, it is crucial to allocate insurance appropriately. Based on the practical experience of handling family wealth inheritance, the team of wealth inheritance and management lawyers of E-Law Yishun shares the compensation method of insurance and the reasonable insurance allocation plan in the case of the accidental death of the family pillar as follows. How to buy accident insurance
How insurance is compensated.
Generally speaking, when the family breadwinner dies unexpectedly, the insurance purchased by the family member will pay corresponding compensation according to the type of insurance
Personal Accident Insurance: This type of insurance is mainly for the accidental death or dismemberment of the insured. Once the insurance liability is triggered due to the accidental death of the insured, the insurance company will pay a certain amount of insurance compensation. This type of insurance is characterized by quick payouts and can help families alleviate short-term financial difficulties.
Life insurance: Life insurance is mainly for the death of the insured, not limited to accidental death. Once the insured dies, the insurance company will pay the corresponding insurance benefits in accordance with the contract. This type of insurance usually has a higher sum insured and can provide a longer period of financial security for the family.
Problems that need to be paid attention to in insurance configuration.
When configuring home insurance, there are a few things to keep in mind:
Determination of the amount of insurance: The amount of insurance for the breadwinner of the family should fully take into account his or her family expenses, debts, and expenses on children's education. If the sum insured is too low, it may not meet the actual needs of the family, while too high will increase the family's insurance expenses.
Choice of insurance type: For family breadwinners, consider purchasing both personal accident insurance and life insurance to fully cover the risk of accidental death and death from illness.
Determination of the duration of the insurance: The duration of the insurance should take into account the working years of the breadwinner of the family as well as the financial situation of the family. Generally speaking, the duration of the insurance can be selected until the family has less burden or the child is working as an adult.
Case Study. Mr. Li is an executive of a company and the breadwinner of the family. He purchased a 30-year life insurance policy with an insured amount of $1 million. At the same time, he also purchased a personal accident insurance with an insurance amount of 500,000 yuan.
Suddenly, one day, Mr. Li died in an accident while going out to work. After his insurance became effective, the insurance company quickly conducted a claim review. After a period of review, the insurance company paid Mr. Li's family 1 million yuan in life insurance and 500,000 yuan in personal accident insurance respectively in accordance with the insurance contract.
The insurance money provided financial support to Mr. Li's family and helped them through the difficult time. Without the right allocation of insurance, families may face greater financial pressure.
In the case of the accidental death of a family member, it is important to allocate insurance appropriately. By choosing the right type of insurance, determining the appropriate amount of coverage, and the duration of coverage, you can provide comprehensive financial security for your family and help them through difficult times.
The team of Yilu Yishun wealth inheritance lawyers has been focusing on wealth inheritance plan planning, risk isolation and tax planning in wealth inheritance for more than ten years.