Nature of insurance

There are three main categories of Insurance:

Main insurance: It can be purchased separately. Generally, the guarantee period is longer, the price is medium, and serious illness insurance is sufficient. It is the most important serious illness insurance.

Additional insurance: The price is cheap and the serious illness protection is sufficient, but the insurance period is short and cannot be purchased separately. When the insurance is renewed, it will be underwritten again. So the customer’s biggest risk is that when the real risk comes, they may not be able to have insurance.

Combination insurance: It is sold in bundles of several types of insurance, and the price is relatively high. Generally, it includes comprehensive protection such as critical illness, accident, and life insurance. Critical illness protection is relatively insufficient.

If you do not have any insurance, it is recommended to buy combination insurance, which will be more comprehensive; if you are buying major illness insurance for the first time, it is recommended to buy the main insurance; if you already have some serious illness protection, and want to improve the level of protection, it is recommended to buy additional insurance.

Insurance coverage

General illness major insurance insureds are not limited to gender, as long as the age meets the requirements, they can participate, but there is a certain difference in the number of contributions paid by men and women, and men are higher than women. With the intensification of competition in the insurance market, major illness insurance especially for men, women, and children has emerged in the market. This type of insurance has strengthened protection for specific groups of people. Customers can add such insurance according to the situation, but they must not just buy this type of insurance. kind of insurance. After all, there are still many serious illnesses that do not distinguish between men, women, and children, so it is still necessary to purchase some basic serious illness insurance first.

insurance duty

There are about ten types of the most common serious diseases, so as long as the serious disease insurance covers major diseases and operations such as acute myocardial infarction, cerebral stroke, malignant tumor, coronary artery bypass surgery, severe burns, major organ transplants, etc ., then this insurance will cover major diseases. It can be said to be quite sufficient. There are more and more diseases covered by major illness insurance. Many diseases are diseases with extremely low probability, which are almost meaningless to customers. If you want to be right, customers can focus on terminal diseases, diabetes, AIDS, senile diseases. Level of coverage for progressive diseases (eg Alzheimer’s, Alzheimer’s, Parkinson’s).

In addition, serious illness insurance in the strict sense is its main responsibility, but more and more serious illness insurance also adds some life insurance protections such as high disability, death, and principal repayment. It means more to people. The cash value of the repayment insurance is generally high. In the event of a disease other than the contract, the customer can obtain the treatment fund by surrendering the insurance.

Insurance amount

The determination of the critical illness insurance amount is based on needs. You can roughly estimate the total financial needs of the disease (such as 100,000-150,000 yuan) based on the current level of more common medical expenses for critical diseases, and then subtract your own or The amount that the unit may undertake (such as savings, public medical treatment, serious illness planning, etc.), the figure obtained is the amount that should be supplemented by commercial insurance.

Some serious illness insurance is paid according to a certain multiple (such as 2-3 times) of the basic insurance amount, then you need 100,000 protection, and you only need to buy 50,000 insurance. Critical illness insurance with multiple payouts has a strong protection function.

Because medical expenses are constantly rising, if you want to increase the amount of insurance in 5 or 10 years, you may still need a physical examination. At this time, your physical condition will be relatively poor, and the premium corresponding to the increase in age will also increase. Therefore, it is recommended that critical illness insurance be given priority and be sufficient as much as possible.

If you are buying critical illness insurance for children or young people, you also need to consider inflation. Critical illness insurance with increasing coverage is the best choice.

Term Insurance

When purchasing major illness insurance, pay attention to the choice of the period. In people’s consciousness, serious illnesses seem to belong only to middle-aged and elderly people, while young people are healthy. Due to the accelerating pace of work in modern society, Therefore people have frequent entertainment, often stay up late and work overtime, coupled with the influence of unreasonable dietary structure and other factors, the incidence of serious diseases tends to be younger. young, serious illness is not an accident, and serious illness does not distinguish between young and old. Critical illness protection should be a guarantee that accompanies life and is a cost that must be calculated in life. The liability period of critical illness insurance should cover a lifetime, and it is recommended to insure at least 70 years old.


Insurance is no better than other commodities, and its rates are scientifically formulated by actuarial experts based on the scope of insurance liability. In addition, insurance rates are subject to strict supervision by regulatory authorities, so there is no price competition for insurance products. The price of insurance is proportional to the scope of coverage, and for cheaper insurance products, the scope of liability and payment conditions are bound to be limited.

Due to the lack of sufficient data in my country to measure the risk of serious illness, insurance companies have adopted a floating rate system for much serious illness insurance for the sake of stability. As the age increases, the possibility of diseases will increase. Therefore, the insurance premium is relatively low when you are young. When you get older, the insurance premium will increase rapidly. In order not to increase the economic burden in the future, it is recommended to purchase major illness insurance in advance and Choose a flat-rate policy.

By Cary Grant

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