While many people think of commercial medical and critical illness insurance as insurance to treat illness. In fact, this is a big misunderstanding. The purposes of commercial medical insurance and critical illness insurance are quite different, a bit like the difference between pension insurance and health insurance.
The purpose of critical illness insurance is to provide coverage for loss of income, which means that if you suffer from such a serious illness, then it will definitely affect your income and give you a certain amount of money to alleviate your suffering. Critical illness insurance is very important for young people. On the one hand, young people are less likely to suffer from a serious illness and have lower insurance premiums. On the other hand, they usually do not like to save money. If they get sick or lose their income, their parents and family may be dragged down. If the insurance company pays 300,000 or 500,000 at this point, it can survive for 10 or 8 years at a fraction of the cost. Depending on the product set up by the insurer, critical illness insurance can cover more than 100 illnesses. In practice, this does not mean much, no matter how many illnesses there are, as the probability of many of them occurring is very low. The definition of illness in the National Catastrophic Coverage currently defines 28 illnesses, of which six are required for all catastrophic coverage. The chance of a person developing these six diseases is 90% of the chance of the other 28 diseases. You can see the names of these 28 major illnesses. It would be strange if you suffered from one of these major diseases without being incapacitated. In the wake of incapacity, many people give little thought to low and middle incomes, while people focus on the situation at hand. In reality, there is a 3 to 6 month wait for resolution of a major medical condition, and the corresponding hospital discharge must be recognized as a corresponding major medical condition before payment can be made. Health insurance is the ultimate protection for the treatment of diseases. First, the state provides basic health insurance for employees or residents. Commercial health insurance is a guarantee that can be reimbursed after the reimbursement of the basic health insurance. In addition, some commercial health insurance policies also allow you to pay in advance for medical expenses, so you do not have to pay your own money in advance to be reimbursed later, which is even more convenient. Reimbursement for medical insurance can be even higher, often exceeding four to five million RMB, and many medical insurance policies reimburse 100% of the cost of medical care, generally with no additional burden on the individual, except for a $10,000 deductible. However, health insurance does not cover all medicines and equipment, but is based on the principles of reasonableness and necessity. Therefore, for the purpose of preventing illness, commercial health insurance should be chosen. For accident purposes, major medical insurance should be purchased. In fact, people with catastrophic insurance have a high chance of getting sick, and 60 to 70% of them will be seriously ill. Therefore, the likelihood of compensation is relatively low.