This kind of insurance is what we often say, with major diseases as the main risk, and there are no clauses such as "the best of both worlds" and "whole life insurance". And the main purpose is to protect diseases.
Category II: Compound critical illness insurance.
This kind of health protection plan is often mentioned by insurance companies, and generally adopts life insurance plus additional critical illness insurance. For example, universal+critical illness (Ping An Zhi Win Critical illness insurance plan), satisfactory care+critical illness (Hong Zhong Changbao worry-free gold package), and of course, critical illness insurance with whole life insurance as the main insurance. So this kind of insurance, besides major diseases, basically has many functions, such as life and death protection, investment income and so on. , look at its main insurance.
The first choice: whether to choose single insurance or compound insurance.
Which type to choose depends on the situation of different customers.
First, if customers want more comprehensive protection, or they want a critical illness insurance to provide as much protection as possible, then the second compound critical illness insurance is more suitable, because they can provide the protection they want by choosing different main insurances. On the other hand, because of life insurance, insurance companies have developed enough additional risks, so they can provide customers with additional value.
For a typical example, if a customer wants to add as many additional functions as possible while purchasing a critical illness insurance, such as pension, medical care, accidents and so on. Then a similar critical illness insurance plan based on universal insurance is more suitable and can take advantage of the low cost of additional insurance.
As mentioned above, this kind of insurance has the advantages of flexibility and strong guarantee ability, but the main disadvantage is that the cost is relatively high (only for customers who mainly want to protect major diseases, and others are only for secondary needs)
Second, if the customer wants a single guarantee, then the first kind of critical illness insurance is more suitable. Because of its single nature, it generally has an advantage in cost, which is especially suitable for customers who only want to insure major diseases. Or an insurance protection plan suitable for customers' combination, and choose better types of insurance in each single insurance for strong alliance. The disadvantage is that there is no other protection, and you need to buy other insurance to supplement it.
For example, China Life's Corning Term Insurance is actually a representative of this type.
The second choice: consumption type or savings type
This choice is more to cater to the psychological needs of customers and control and grasp the overall premium budget of customers.
Consumer insurance is mainly about not surrendering and saving, and the premium is essentially sunk cost. This mainly exists in a single critical illness insurance.
Savings insurance is mainly return insurance and savings insurance, and the premium is essentially the investment cost. This is also found in single critical illness insurance and in compound critical illness insurance.
Consumer insurance costs are relatively low, but customers are generally under great psychological pressure and it is difficult to choose.
Savings insurance is expensive, but customers generally like disease prevention and disease-free old-age care, so it is difficult to choose.
Therefore, as a financial planner, it is very important to help customers choose the right type according to their premium budget and psychological needs. Considering the particularity of major disease risk, in risk identification and risk classification, major disease risk belongs to the risk of low frequency but huge loss, so rationally speaking, the most suitable risk control is passed on through insurance. Then the insurance product we hope to get is low premium and high protection, because it is unwise to invest a lot of premium for a low-frequency accident every year. Rationally speaking, consumer insurance with low premium and high security is more in line with the logic of risk control. However, in practice, it is not easy to convince customers because of the traditional thinking concept of China people, which is why the market is full of savings-type critical illness insurance, and few are consumer-type. However, overseas, due to the maturity of people's concepts, there are many consumer-oriented critical illness insurance, which is also dominant.
Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.