Critical illness insurance: What is it?



01 What is critical illness insurance


"Critical illness insurance, as the name suggests, is used to solve the treatment costs incurred in the treatment of major diseases." Due to preconceived notions, most of my friends believe that critical illness insurance means nothing but the above.


In fact, that is not quite correct. Would you like to know why? Please continuing this reading.


Critical illness insurance actually solves the problem of "interruption of income during treatment”.


Critical illness insurance payouts can replace the insured's income during treatment. It can also alleviate the family's economic crisis to a certain extent.


Critical illness insurance coverage is also something we need to pay special attention to. The amount insured for an insurance policy depends on a few factors.



When it comes to critical illness insurance, the first thing occurs to everyone is the high cost of treatment.


In fact, in addition to the cost of treatment, we also need to consider the loss of income during the treatment period; nutrition and nursing expenses during the rehabilitation and conditioning phase; household debts such as mortgages and car loans; fixed expenses for the normal life of the family, etc.


Therefore, everyone should determine the critical illness insurance amount according to their own income level and the contribution of personal income to the total family income.



02 Types of critical illness insurance


As the relatively more complex insurance among medical insurances, it per se has many types.



1. Saving/consuming type of critical illness insurance


The biggest difference between the two is whether there is a death guarantee.


If there is no insurance within the guarantee period, the premium will be consumed, which is consuming-type critical illness insurance.


During the insurance coverage, if there is no critical illness, and unfortunately dies, the savings-type critical illness insurance can be compensated, but the consumption-type critical illness insurance cannot.


It should be noted that death and serious illness, only one of the two will be compensated, and there is a certain lack of protection.



2. Single/multiple payment of critical illness insurance


Single-payment critical illness insurance:

Traditional critical illness insurance is paid out in a single payment. Death and critical illness are only paid once, and the contract is terminated after the payment.


Multiple payment of critical illness insurance:

On the basis of the single payment of critical illness insurance, the number of critical illness claims is increased, that is, the contract is still valid after the first payment, and after a certain interval, different critical illnesses can be paid again.


For most of the multiple-payment critical illness insurance, the underwriting company will design critical illness groupings. When the same group of diseases is paid once, this group of diseases will be invalid.


That is, with a certain interval after you are first diagnosed, if the serious disease diagnosed again is in the same group as your first diagnosed disease, the insurance company will not pay.


It should be noted that most of the multiple-payment critical illness insurance products will generally terminate their responsibilities for death, minor illness, and severe illness after the first serious illness.