Difference 1: Lifelong security is better than short-term security, and it can also provide security for people over 65 years old.
Most of the short-term health insurance products in the market need to be renewed every year, and some products will refuse to renew their insurance because of claims or physical problems of the insured. Moreover, the maximum renewal age of such products is generally 65 years old, but the medical expenses spent by a person aged 60 and beyond account for about 50% of his life. Therefore, these insurance products are often not available when the insured needs medical insurance most.
The emergence of lifelong health insurance makes up for the shortage of short-term health insurance to some extent. It uses a balanced rate, which will not increase because of the change of the insured's age and physical condition, and the insured does not have to worry about the insurance company raising the premium or refusing insurance. For example, the contract of AIA Kangfu Lifelong Health Insurance Plan stipulates that once insured, it will be guaranteed for life. Effectively solve the problem of increased medical expenses for the elderly insured.
Difference 2: you don't need to bundle the main insurance, you can buy it separately, which is more flexible.
Life-long health insurance is sold in the form of additional insurance except critical illness insurance, and the insured cannot buy it separately. In contrast, most of the traditional one-year health insurance can be purchased separately, which is very flexible.
"From a medical point of view, few people can' die without illness', so the cost of life-long health insurance products is high. If it is designed to be sold separately as the main insurance, the price will be high and it will be very hard for both the insured and the insured. " A professional said when talking about lifelong health insurance products. In addition, dual insurance also has policy restrictions. Based on these two reasons, most life insurance health insurance products are bundled with life insurance and other main insurance products.
Difference 3: it has the function of life insurance and can be returned when it dies.
Short-term health insurance products are mostly consumer products, which can only provide short-term protection, while life-long health insurance products are mostly bundled with long-term life insurance products, and are designed with death insurance benefits, which is equivalent to setting up a "fund" or "account" for the insured. After the death of the insured, he can receive the remaining amount after deducting the compensation he has received.
Difference 4: low short-term cost; Long-term overall cost is high.
"Short-term health insurance protection period is generally one year, using natural rates. When the age is relatively young, the premium is relatively low, which is suitable for young people with relatively weak economic foundation and in urgent need of protection. Due to the long protection period, long-term health insurance adopts balanced premium, and the premium is relatively high, which is suitable for people with a certain economic foundation. " This also fully explains the difference in rates between the two, which is closely related to the need to bundle the main insurance for life insurance.