I. Classification of critical illness insurance
Critical illness insurance is mainly divided into three categories: consumption type, savings type and return type. The main differences are as follows:
(1) Consumer critical illness insurance
During the contract guarantee period, if an agreed disease occurs, the corresponding insurance amount shall be paid according to the contract;
If there is no accident during the guarantee period, the validity of the insurance contract will be terminated after the insurance expires, and generally no payment will be made, that is to say, all the premiums paid have been consumed.
Of course, some products will return the accumulated premium or cash value paid by consumers.
It depends on how each product is agreed.
(2) Savings-based critical illness insurance
It corresponds to consumer critical illness insurance, and the basic insurance amount of death compensation will be agreed in the contract.
During the contract guarantee period, in case of illness or death agreed in the contract, the corresponding insurance amount shall be paid according to the contract.
However, there is only one compensation for death and serious illness. If you are seriously ill, you will lose your insurance coverage and the contract will be terminated. Never had a serious illness, and finally died.
(3) Return critical illness insurance
During the contract guarantee period, if an agreed disease occurs, the corresponding insurance amount shall be paid according to the contract;
If there is no accident during the guarantee period, it will be returned in the form of paid premium, insured amount and cash value. Depending on the contract.
That is to say, "if you are sick, you will pay back, and if you are not sick, you will pay back."
You can also regard the returning critical illness insurance as a special form of saving critical illness insurance, which is equivalent to increasing the responsibility of returning premiums to a certain age on the basis of saving.
From this, we will find that the biggest difference between consumption type and regression type lies in whether to return.
Second, which kind of critical illness insurance is more cost-effective?
So who is more cost-effective?
Some people think that surrender can't be more conscientious, even if it's a claim for illness, and the premium will be returned to us after decades of illness.
It is also said that the purpose of critical illness insurance is to protect the risk of critical illness, not how much money can be recovered in the end.
Next, we make a further comparison through products:
Take the 30-year-old population, with 300,000 insured and 30-year payment as an example.
In the previous products, there was no additional death, that is, in the state of consumer critical illness insurance, the premium for men only needed 3 150 yuan, while that for women only needed 293 1 yuan.
Additional death, that is, the savings version, the male premium is 4824 yuan, and the female premium is 44 19 yuan.
It is very suitable for people with limited budget, and can get higher amount of critical illness protection with less money.
Another product, in the case of no extra death, that is, the consumer version, the premium for men is only 4482 yuan, and that for women is only 4236 yuan.
But the refundable version (in the case of additional death and full insurance) is much more expensive. The premium for men is 9045 yuan and that for women is 8832 yuan. However, if the insured is not out of danger until he is 70 years old, he can return the premium he has paid.
From the premium point of view, due to the different coverage contents, the premiums of the two kinds of critical illness insurance are lower than those of the returned critical illness insurance.
It should also be noted that the refundable version of the due insurance premium is paid as follows:
If the maturity date still exists, the maturity insurance premium shall be paid according to the sum of the accumulated insurance premiums paid by the main contract and the two all-insurance contracts, and the two all-insurance contracts shall be terminated; If the cash value decreases to zero after the first payment of critical illness insurance, the supplementary payment will be terminated.
In other words, in the case of returning the version, if the serious illness is paid, the responsibilities of both ends and the premiums paid will be wasted.
Third, summary.
Generally speaking, consumer critical illness insurance is cheap. In the case of limited budget, this product is the first choice, with high insurance coverage and serious illness risk protection.
If conditions permit, it is best to increase the budget on the basis of consumer critical illness insurance to jointly ensure the protection of death.
Returned critical illness insurance is not suitable for most people.
Because the returned critical illness insurance looks good, you can definitely get your money back, and you can get it back alive, but you need to pay a much higher premium.
Ordinary people buy insurance, the primary purpose is to avoid risks and get protection;
On this basis, if you want to use insurance for financial management, annuity insurance and increased whole life insurance will be better choices.
In other words, insurance belongs to insurance and financial management belongs to financial management.
If you want to solve these two problems with one insurance policy at the same time, you must carefully look at whether the product form meets your expectations.
I hope dad's answer will help you!