In today's volatile and risk-laden socioeconomic environment, rationally allocating insurance has become a crucial means for people to mitigate risk and safeguard their lives. Insurance, at its core, is a risk transfer mechanism. By signing a contract with an insurance company, the policyholder pays a premium and transfers specific risks to the insurance company.
When the agreed-upon insured event occurs, the insurance company provides financial compensation as per the contract, thereby helping the policyholder mitigate the financial losses caused by the risk event.
As an important financial instrument, one of the core functions of insurance is risk prevention. So, how does insurance play this role in real life?
Characteristics of Accident Insurance
Accident insurance provides coverage for personal injury caused by external, sudden, unintentional, and non-disease-related events.
For example, heatstroke, due to personal factors, is not covered by insurance. Sudden death, also caused by medical factors, is not covered by conventional insurance policies. However, due to some controversy, accident insurance products now cover sudden death. When purchasing, be aware of any exclusions.
Accident Insurance Benefits
- Death Benefit
This covers death caused by an accident. If the insured dies in an accident, the insurance company pays the insured sum.
Comprehensive accident insurance offers a wide range of coverage, covering accidents involving airplanes, ships, trains, fires, drowning, and other accidents. However, some plans reduce the insured sum for specific accidents like drowning and electric shock, which is something to keep in mind when purchasing.
Also, for children aged 0-9, the death benefit is capped at 200,000 yuan; for children aged 10-17, the death benefit is capped at 500,000 yuan. This is also something to keep in mind.
- Disability Benefit
Disability benefits are generally paid based on the degree of disability. Level 1, the most severe, pays 100% of the insured sum, while level 10, the mildest, pays only 10% of the insured sum.
- Accidental Medical Treatment
Accounting for accidental medical treatment reimburses the insured for hospital expenses resulting from an accidental injury. We need to consider whether accidental medical expenses have a deductible, whether they extend coverage beyond social insurance, the scope of hospitals visited, and the reimbursement rate.
- Accidental Hospitalization Benefit
Some accident insurance products include hospitalization benefits. When purchasing, consider whether there are restrictions on the number of days covered, the annual limit on benefit days, and the interval between hospitalizations.
Accident Insurance Compensation Principles
Accident insurance compensation follows the principle of proximate cause. Proximate cause here does not refer to the cause closest to the loss in time or space, but rather the most effective and decisive factor in contributing to the loss.
Accuracy Insurance Selection Guidelines
Accident insurance is relatively inexpensive among the four major insurance plans. This can lead to people not paying enough attention to it when purchasing, only to discover they are unreimbursed when an accident occurs and need to make a claim, leading them to conclude that insurance is a scam. Therefore, don't neglect purchasing insurance simply because the cost is small.
- Coverage Selection
Compared to life insurance, accident insurance premiums are cheaper for the same coverage amount. Therefore, consider products with a higher death benefit.
- Coverage
In real life, accidental disability is far more likely to occur than accidental death. Therefore, while insurance covers both accidental death and disability, it must also cover accidental medical care to provide peace of mind for the insured.
- Age
The breadwinner of the family needs both adequate death benefit and sufficient funds for medical treatment in the event of disability. However, for the elderly and children, the accidental medical coverage should be increased.