Inheritance of wealth entails certain risks. Therefore, we need to arrange our wealth in advance through legal means to avoid significant losses in the event of such risks. Insurance, as a tool for property inheritance, has 7 major advantages that can help reduce confusion and worry:
✅ Designation of Beneficiaries
Beneficiaries can be designated, and the insured amount is determined in advance by the inheritor. All legal relationships are very clear, and disputes can be avoided.
✅ Debt Avoidance Function
The insurance specifies the beneficiaries, and after the insured’s death, the insurance claim will be paid to the beneficiaries and protected by law. The proceeds will not be included in the insured’s estate and will not be used for debt settlement or compensation.
✅ Separation of Business and Personal Assets
Insurance can draw a clear line between family finances and business finances, and even if the business fails, individuals and their families can be protected through insurance.
✅ Regular Payments instead of Lump Sum Payments
In traditional inheritance, descendants receive all assets at once. Young people who suddenly inherit large amounts of wealth may inevitably have problems with reckless spending and haphazard investments. Insurance, on the other hand, can pay out benefits in installments or batches to ensure long-term financial security.
✅ Amplification of Inheritable Assets
Through the leverage effect of life insurance, personal inheritable assets can be increased.
✅ High Confidentiality
Unlike statutory and testamentary inheritance, insurance companies do not call the entire family to the scene when the beneficiaries receive their payouts. Life insurance is the best way to take special care of someone in a family.
✅ Simple and Time-Saving
The traditional inheritance process can take a very long time, while insurance claims can be processed quickly with just an ID and a death certificate to collect payouts from the insurance company.
