What is the difference between life insurance and critical illness insurance? Which to buy first?

Critical illness insurance protects people's health, while life insurance protects people's lives. In the event of death or total disability within the agreed time, the life insurance company can pay an agreed amount of compensation, and when the life is over, the contract will naturally be terminated. If you suffer from the agreed critical illness insurance, you can apply for compensation, and when the compensation is completed, the critical illness insurance contract will also be terminated.

The difference between life insurance and critical illness insurance.

The difference between life insurance and critical illness insurance.

1. It has different basic meanings.

Critical illness insurance does not cover all illnesses. Contractual compensation can only be received if the parties specify a critical illness in the agreed contract, and its insurance standard is the health of the person. The standard of life insurance is human life, that is, if the insured dies or is completely disabled within the agreed period, the insurance company compensates the agreed compensation.

2. Different payment methods.

If the insured receives compensation, the insured needs to meet the main diseases specified in the contract and can apply for compensation in accordance with the contract. Life insurance is paid in the event of the death or total disability of the insured.

3. The basis for calculating premiums is different.

Critical illness insurance is the basis for calculating critical illness premiums, while life insurance is based on mortality. The incidence of major diseases is extremely volatile relative to the probability of accidents and deaths, so the risk of critical illness insurance is relatively large.

4. The scope of protection is different.

Under the same conditions, the coverage of life insurance is relatively narrow, and it is only liable for death or total disability, regardless of the cause of an accident or illness. Critical illness insurance is covered as long as you have a critical illness under the contract.

By comparing the various items, we can see that each type of insurance has different biases. It contains different products in terms of personal insurance types. For example, life insurance has general life insurance, term life insurance, etc., and the most important thing is to see the end result and what is the reason for this result.

As for which product is suitable to buy, this should be purchased according to your own needs, professional analysis and budget, and you should also find a professional insurance professional to provide reasonable advice or make a corresponding plan according to the analysis report.

Quote from the article: The difference between life insurance and critical illness insurance. Satisfied!

As some common high-incidence critical illnesses are getting younger and younger, critical illness insurance plays a very important role in protection, and it is recommended to give priority to critical illness insurance. Critical illness insurance protects "life" and solves the problems of no income and no money for treatment during illness. Life insurance covers "death" and can pay a sum of money to the family after death.

So how do you choose the right critical illness insurance? For the popular critical illness insurance products on the market, I have made a ** point before, you can compare and refer to it first:A comparison table of 136 popular critical illness insurances in China

There are a few things to keep in mind:

Safeguards should be comprehensive, attentionCovers mild to moderate disease with a high incidence。Mild to moderate disease is a condition that appears in the early or middle stage of a major disease, and the probability of ** is greater, and once it is effective, the risk of severe illness is greatly reduced.

Therefore, a good critical illness insurance product should cover mild to moderate illnesses with a high incidence, andThe more payouts, the better, and the higher the payout ratio, the better

The threshold for claims should be low, attentionCritical illness claims are not grouped for multiple claims, and high-incidence critical illnesses (cancer) are best grouped independently。Multiple claims in groups means that after one disease is paid, other diseases in the same group cannot be paid again.

Obviously, it is better to not group multiple times than to group multiple times, which increases the probability of getting a claim. If it is a disease group, then more high-incidence diseases should be divided into different groups to ensure that multiple claims can be obtained.

Be flexible. General critical illness insurance products come with an optional Insured Waiver or Policyholder WaiverIt is best to come with a policyholder waiverLiability.

If you are unable to continue to pay premiums, you can continue to enjoy protection without paying money if the policyholder waives it. This is especially suitable for adults to insure their children or for couples.

First of all, let's understand what the protection responsibilities of life insurance and critical illness insurance are.

Life insurance, let's expand it, is "life insurance". Life insurance is insurance that takes the life of the insured as the subject of insurance, and in layman's terms, it is to protect life and death. Although Chinese people are more taboo about the issue of life and death, the "afterlife" is not something we can ignore.

A person who drives a crane to the west will never have any worries or worries again, but who will bear the support of children, the support of the elderly, housing loans, car loans, etc.? Therefore, a full amount of life insurance highlights its importance.

I don't want to say that life insurance is the responsibility of the family and the love of the family (standard insurance ** people sales words), does not buy life insurance means that we are not responsible for the family, we do not love the family? Suffice it to say that having a life insurance policy gives you more peace of mind.

Critical illness insurance, if you suffer from a critical illness as stipulated in the insurance contract, and meet the degree or status of the illness agreed in the clause, you can get the critical illness insurance benefit. Adequate critical illness insurance can not only cover medical expenses, but also compensate for the loss of income in the first and first periods. To borrow a sentence from CCTV's advertisement, "Stay away from poverty, start with a guarantee".

Most whole life critical illness insurance in China includes life insurance liability, but the amount of life insurance may not meet our needs. Therefore, it is also necessary to purchase other life insurance products to improve the protection plan.

My advice is to take out accident and critical illness insurance first, and then decide whether to supplement life insurance depending on your financial situation.

Critical illness insurance and life insurance have different roles, each performing its own role and needing to be purchased. Under the premise of limited budget, if there must be a priority, it is recommended to give priority to purchasing critical illness insurance, and then consider allocating life insurance.

1. What is the difference between critical illness insurance and life insurance?

Life insurance is the oldest and most primitive type of insurance, and its role is also very simple, people are gone, and they lose a sum of money.

Life insurance is often the standard for adults, parents, spouses, children, assuming that they are gone, they have to leave something behind, so that they can smoothly live without themselves.

Critical illness insurance, mainly to prevent serious illness, buy critical illness insurance, if you suffer from cancer, acute myocardial infarction and other serious diseases, meet the conditions for claims, critical illness insurance can directly pay a sum of money, for illness**, post-operative**, to make up for the loss of income caused by the disease, etc. What are the good products for critical illness insurance, we have reviewed more than 1,000 critical illness products, I believe you can definitely find the right product for youWhat are the cost-effective critical illness insurance products? Critical Illness Insurance Product Recommendation".

2. What is the connection between critical illness insurance and life insurance?

Life insurance is about death; Critical illness is a critical illness, but in fact, many critical illness insurance policies can also protect against death.

Many critical illness insurance policies add death liability - you can pay if you are sick and you can also pay for death, and this kind of critical illness insurance is more expensive because of the additional death liability.

The connection between critical illness insurance and life insurance is that critical illness insurance can take on a part of the role of life insurance

Critical illness insurance with death liability will be compensated in case of illness and death (but generally only one will be paid);

Critical illness insurance with no death liability only pays for illness, not death.

3. Should I buy life insurance if I buy critical illness insurance with death?

For the breadwinner of the family with heavy responsibilities, it is recommended to purchase critical illness insurance and life insurance together to ensure that the death sum insured can cover all family responsibilities.

If you don't have many family responsibilities, such as a stay-at-home wife or a stay-at-home dad, you don't need to have too high requirements for the death insurance amount, and it's OK to add death liability when you buy critical illness insurance.

If you have a limited budget, are the breadwinner of your family, and have family responsibilities, you can choose a combination of pure critical illness and term life insurance.

Social security is the basic means of security, and commercial insurance is a supplement to social security. With the increase of people's insurance awareness, more and more people have begun to buy commercial insurance to transfer risks. So, should I buy critical illness insurance or life insurance first? What is the difference between life insurance and critical illness insurance?

Buy firstCritical illness insuranceOr life insurance? Scientific insurance planning should start with accident and health insurance, with these most basic protections, and then consider other types of insurance, that is to say, if there is no commercial insurance, the insurance should generally be bought in the following order.

Accident (Life Insurance) Health Insurance (Including Critical Illness and Medical Insurance) Education Insurance Pension Insurance Magnum!

What is the difference between life insurance and critical illness insurance?

Life insuranceThat is, if the insured dies or becomes totally disabled within the agreed period, the insurance company will pay the agreed compensation. If the insured person is safe and sound, the insurance contract is terminated.

Critical illness insuranceCoverage for critical illness as agreed in the contract. If the insured suffers from a critical illness as agreed in the insurance contract, the insurance company will pay the insurance benefits in advance.

To put it simply, life insurance is life-saving - people die or are completely disabled, and the rent is compensated; Critical illness insurance is a protection for illness - a person who suffers from a critical illness is compensated.

Since the coverage of life insurance is relatively narrow, under the same conditions, the premium of term life insurance is relatively low, and the sum insured is higher. That said, critical illness insurance should be purchased in preference to term life insurance. Here's why:

1. High medical costs;

2. Income lost during the ** period and the period of recuperation;

3. Cure but not heal, death;

Therefore, whether you buy critical illness insurance or life insurance first, you will choose to buy critical illness insurance first.

Both life insurance and critical illness insurance should be bought.

Life insurance is based on the life of a person as the subject of insurance, and the insurance money is paid to the beneficiary when the insured dies, the purpose of which is to leave a sum of money for the loved one and continue the economic life of the insured.

Critical illness insurance is based on the physical health of the insured, when the insured reaches the specific critical illness or severity of the disease agreed in the insurance terms or performs the agreed surgery, such as malignant tumor, stroke sequelae, coronary artery bypass grafting, etc., the critical illness claim is paid to the insured, so that the insured can have a better and normal life.

There are the following differences between the two:

1. The subject matter of insurance is different: life insurance is a life insurance with the life of the insured as the subject of insurance, and the life or death of the insured as the payment condition; Critical illness insurance is a health insurance that takes the physical health condition of the insured as the subject of insurance and pays the insurance money when the insured suffers from the illness agreed in the contract.

2. The liability for compensation is different: life insurance is paid when the insured dies or is totally disabled; Critical illness insurance is paid when the critical illness diagnosed by the insured is covered by the insurance contract.

3. The basis for calculating premiums is different: the premium of life insurance is actuarial according to the mortality rate of the insured, while the critical illness insurance is actuarial according to the probability of the insured suffering from a critical illness, and it will also be calculated with reference to the physical examination of the insured before applying for insurance.

4. Different functional significance: life insurance is the payment of claims to the designated beneficiary or legal beneficiary when the insured dies, which conveys the love of the insured, continues the economic life of the insured, and is the embodiment of love and responsibility. The critical illness insurance money is often paid to the insured, which is used to prevent the insured from having a higher cost due to a critical illness and the basic living expenses when he needs to be unable to work for a long time in the later period, resulting in the family economy being unable to bear it and giving up the situation or having to work with illness to obtain income to maintain life, so critical illness insurance is sometimes called income loss compensation insurance.

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It is better to buy separately for the following reasons:

There are many critical illness insurance in the market, how to choose the right critical illness insurance for you? An insurance advisor who has been in the industry for decades can give you the answer "Super Practical Lazy Guide: Critical Illness Insurance Recommendations for Different Budgets!" See which one is right for you? 》

1.Inadequate protection.

Critical illness insurance with death, although it is essentially an additional life insurance, is very different from buying life insurance separately. The death benefit of critical illness insurance is linked to the critical illness benefit, and if you have received critical illness insurance benefits before the death of the insured, you will not be able to receive the insurance benefits even if you meet the conditions for receiving the death benefit. However, there is no such restriction for separate purchases, and you can receive the insurance benefits as long as you meet the conditions for receiving the product.

2.Economic situation.

When we buy insurance products, we must consider our own financial situation to decide. If you have limited financial conditions and are unable to bear the premium during the subsequent payment period and surrender the policy, the loss will also be great. Therefore, whether you buy critical illness insurance and life insurance separately or together, it depends on whether it is within your financial capacity.

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If you're not sure whether you should choose critical illness insurance, here are a few questions to ask yourself:

1. What is your health?

Before buying protection insurance, you need to truthfully inform your health. Generally speaking, the health notice of medical insurance is stricter than that of major illness insurance. And the waiting period for critical illness insurance is 90 days, so if you don't feel like you're in good shape, the sooner you get it, the better.

2. What is your financial situation?

As far as the level of medical care is concerned, once a critical illness occurs, the basic ** cost is about 300,000-500,000 yuan, and the critical illness has a 5-year ** period, if you can take out this part of the funds in a short period of time and it will not affect your normal quality of life, you can not consider it.

3. What problem are you trying to solve?

The allocation of insurance must vary from person to person, and it is necessary to understand your own needs and risks clearly, so that you can choose the right insurance for yourself. If you just want to cover the medical expenses incurred by hospitalization due to regular illness, then you can deal with it by configuring medical insurance. However, if you are worried that you have a serious illness and have no money to pay off your mortgage, car loan, raise children, support the elderly, and various living expenses, you can buy yourself a critical illness insurance.

In this way, when the risk is suitable, you can get a high amount of compensation at one time, so as to ensure that the family's living standard will not be affected in the next 5 years, and you can recuperate with peace of mind.

For children and the elderly, the necessity of life insurance is not strong, but for adults with family responsibilities, it is necessary to allocate one in the first place, and the main reasons are as follows:

1. Deal with the risk of death.

Life insurance is a product that takes the death of the insured as a condition of payment, whether the insured dies due to illness during the insurance period, or dies accidentally, or even commits suicide after 2 years of insurance, the claim can be paid to the beneficiary or heir of the policy after his death.

2. Reflect family responsibilities.

If the breadwinner of the family dies, the family's income will be interrupted, and the family's livelihood may not be secure in the future. Nowadays, many adults not only have to raise children, but also support their parents, family responsibilities are heavy, if you configure life insurance, in case of your unfortunate death, you can also leave a sum of money for your family, for their later life to provide a certain economic basis.

3. Deal with the risk of liabilities.

Many people are burdened with car loans, home loans, arrears, etc., and in the unfortunate event of their death, these debts will fall on their families, who will not only have to bear the pain of losing their loved ones, but also have to pay off the debts later, adding to their burden.

4. The relative isolation of debts can be realized.