What is Early Payment Critical Illness Insurance?

Advance payment critical illness insurance usually refers to an insurance plan that includes two liabilities, the critical illness insurance benefit and the death benefit (partial preservation disability), and the compensation amount of the two liabilities is the same. So what diseases are covered by products like critical illness insurance? Let's take a look first:

What illnesses are covered by critical illness insurance? If you don't know these, don't buy them randomly!

Early Benefit Critical Illness Insurance covers two important liabilities:

1) Critical illness insurance benefit. If the insured suffers from a critical illness specified in the insurance contract during the insurance period, the insurance company will pay the amount agreed in the policy to the designated beneficiary. In the event of the subsequent death of the insured, the insurance company will not pay any additional benefits.

2) Death benefit. If the insured does not suffer from a critical illness during the period of insurance, but dies due to other circumstances covered by the policy, the insurance company will pay a sum of the amount agreed in the contract in advance to the designated beneficiary.

Because under normal circumstances, the amount of critical illness insurance is the same as the death benefit, and death will no longer be covered after the critical illness is paid, so this type of critical illness insurance is called early payment critical illness insurance.

So how to avoid pitfalls in the purchase process of such as early payment critical illness insurance and other types of critical illness insurance? Take a look at this popular science article:

Which is the best critical illness insurance, how to buy it cost-effectively, and teach you to avoid these pitfalls of insurance.

After a basic understanding of the content of early payment critical illness insurance, let's take a look at which critical illness insurance is suitable for different premium budgets:

Generally speaking, the insurance liability of this product covers critical illnesses.

In the case of death and/or substantial disability, the total sum insured includes the death sum insured.

and critical illness sum assured.

If the insured suffers from a critical illness as agreed in the contract, the insured can receive a certain percentage of the total insured amount and the critical illness insurance benefit in advance; In the event of death, the deceased beneficiary will receive the remaining part of the death benefit.

If the insured does not suffer a critical illness, the entire benefit is paid by the beneficiary as a death benefit.

The so-called "critical illness early payment" refers to the additional insurance attached to the main insurance in commercial insurance, and the other name is also called "life dignity payment". That is to say, 90 days after you purchase commercial insurance with an additional critical illness payment, the hospital diagnoses that you have committed a critical illness, then the insurance company will fulfill the relevant obligations and pay you the insurance amount. You can use the money you pay to go to the doctor, or you can leave it alone and use it yourself.

For example, if you buy this insurance with an insurance amount of 100,000 yuan, and you are diagnosed with a critical illness after 90 days, then you ask your salesman to pick up the relevant information, and the insurance company will pay you 100,000 yuan. This money will usually be credited to your payment card within 3 days (Ping An is like this).

In addition, there are many types of critical diseases, such as all malignant tumors, and high-grade disability awaits.

What does it mean to pay out critical illness insurance in advance?

Hello! Early payment of critical illness insurance means that if the insured suffers from the critical illness listed in the policy, the insurer can pay the critical illness insurance benefit in advance according to a certain proportion of the death sum insured for medical or surgical expenses and other expenses, and the deceased beneficiary will receive the remaining part of the death insurance benefit upon death.

Deep Blue Insurance Dedicated Insurance Brokers will provide you with professional advice.

Early payment critical illness insurance is generally purchased as an add-on to whole life insurance or term life insurance, and the sum insured is shared with the main insurance. When the insured suffers from a critical illness stipulated in the contract, and the critical illness insurance pays a certain amount of insurance money in advance, the sum insured of the main insurance will also be reduced by the same amount, and the cash value corresponding to the reduction of the sum insured of the main insurance will not be refunded.

If critical illness insurance has been configured, the role of early payment of critical illness insurance is not significant, and if there is no configuration of critical illness insurance, early payment of critical illness insurance can provide protection for the insured by paying the sum insured of the main insurance in advance, which can play a great role at critical moments.

Critical illness insurance is available in the following ways:

1. Additional payment.

It is necessary to purchase other main insurance at the same time, such as whole life insurance or endowment insurance at the same time, which is a type of consumption-based insurance, and the natural rate design is more common. That is, it is only necessary at the age of thirty.

3. 400 yuan, the payment to the age of 60 will exceed several thousand per year, and the premium cannot be refunded when no claim occurs. The cash death benefit is paid according to the sum insured of the main policy.

2. Pay in advance.

It is necessary to purchase other main insurance at the same time, and most of them are limited to whole life insurance at the same time, which is a type of consumer insurance. The death benefit is also based on the sum insured of the main insurance. Here, whenever you see an additional critical illness with the words "early payment", you need to understand that it has a very significant feature - once a claim occurs for an additional critical illness, the sum insured of the main insurance must be subtracted from the claim amount accordingly.

For example, if you apply for 200,000 whole life insurance and pay 100,000 yuan in advance for critical illness, if you get 100,000 yuan in critical illness claims, the whole life insurance will subtract the 100,000 yuan that has been claimed, from 200,000 yuan to 100,000 yuan. If the whole life insurance and the additional early payment are each insured for 100,000 yuan, once a critical illness claim occurs, the main insurance will be reduced to zero, and the insurance contract will be terminated.

3. Independent payment.

Critical illness insurance with independent payment of primary insurance includes insurance liability for death and critical illness, and its liability is completely independent, and the two have separate sum insured. If the insured suffers from a critical illness, the insurer pays the critical illness insurance benefit, the death insurance benefit is zero, the insurance contract is terminated, and if the insured does not suffer from a critical illness, the death insurance benefit is paid. This type of product is easier to price, only needs to consider the incidence and mortality of major diseases, but the description of major diseases is strict.

4. Proportional payment.

Proportional critical illness insurance is designed for the type of critical illness, mainly considering the incidence, mortality, cost and other factors of a critical illness to determine the proportion of payment in the total amount of critical illness insurance. When the insured suffers from a certain major illness, the proportion agreed in the contract will be paid, and the death benefit will remain unchanged, and this type of insurance can also be used for the above types of products.

There are four main payment methods of critical illness insurance: early payment of critical illness insurance, additional payment of critical illness insurance, proportional payment of critical illness insurance and independent payment of critical illness insurance. The following section describes when and which payment methods are used for critical illness insurance.

1.Critical illness insurance is paid in advance.

Early payment critical illness insurance is a type of consumer insurance, which generally needs to be purchased together with other main insurance, such as life insurance for the whole life. The death benefit is also based on the sum insured of the main insurance.

2.Additional critical illness insurance.

Critical illness insurance with additional benefits is the same as critical illness insurance with early payment, both of which are consumption-based insurance and must be purchased together with other main insurance, and the same is true for cash payments in death. However, the premium is calculated by the natural rate of additional critical illness insurance, so it is important to purchase additional critical illness insurance as soon as possible.

3.Critical illness insurance is paid on a pro-rata basis.

Proportional critical illness insurance is an insurance that pays according to the proportion agreed in the contract when the beneficiary suffers from a certain critical illness, and when the insured receives a claim for a critical illness, his death benefit will not change. This insurance is designed for critical illnesses. The proportion of his payment is mainly determined by factors such as mortality, incidence, and cost of a major disease.

4.Critical illness insurance is paid independently.

"Independent" in independent payment critical illness insurance means that the beneficiary's death and critical illness liability and insurance amount are completely independent, if the beneficiary suffers from critical illness, the insurer pays the critical illness insurance benefit, the death insurance benefit is zero, the insurance contract is terminated, and if the beneficiary does not suffer from a critical illness, the death insurance benefit is paid. Critical illness insurance products.

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