Don't waste money, these three types of people don't need to buy serious illness
2024-05-27
164 CommentsUsually, we are always discussing "who should buy critical illness insurance,"
today let's talk about something different.
I will tell you what kind of people don't really need to buy critical illness insurance.
01
There are only three simple categories of friends who don't need to buy critical illness insurance:
The financially independent don't need to buy it, because it's unnecessary;
Those over 50 years old don't need to buy it, because the premiums will be more expensive than the coverage, making it too costly;
Those with a low family annual income don't need to buy it, because purchasing this insurance will most likely affect their normal life.
People who are financially independent don't need critical illness insurance.
Wealthy first-generation individuals with monthly incomes of millions or even tens of millions, and second-generation rich kids with family-owned mines,Those who fundamentally disdain critical illness insurance for its paltry benefits.
Payouts of 500,000 or 1 million, it's not that interesting, one could opt out.
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However, for the middle class who are not entirely financially free, it is imperative to secure a good critical illness insurance policy.
Because the middle class itself is a product of the times.
In an economic downturn, they are less a middle class and more high-level wage earners,
Seemingly possessing decent jobs and education, essentially they are just a bit more financially comfortable than the poor.
With children attending international schools, a spouse not working, and carrying millions in mortgage debt,
Should they face unemployment or layoffs, the pressure is greater than that of ordinary families.
Thus, risk hedging is still very necessary, and with a bit more financial leeway, there are more options to consider.
One could consider increasing the critical illness coverage amount, or directly opt for high-end medical insurance to enjoy superior medical resources and services.They are all paving their own way out.
Apart from the wealthy, the majority of people who come to me for advice on critical illness insurance for their parents are around 50 years old.
In fact, I do not recommend these friends to purchase critical illness insurance.
In reality, critical illness insurance is not very friendly to middle-aged and elderly people.
On one hand, there is the issue of age; the maximum age for purchasing critical illness insurance is generally between 55 and 60 years old.
People over 50 are considered older, which leads to higher premiums, and there may be a situation where the premiums paid are more than the coverage amount.
It is quite common in insurance for the middle-aged and elderly to pay 60,000 and be compensated with only 50,000.
On the other hand, there is the issue of health status; as people age, they are more likely to have chronic conditions such as high blood pressure, high blood sugar, and diabetes, making it difficult to pass the health disclosures required for critical illness insurance and million-yuan medical insurance.
An abnormality in a single indicator may prevent middle-aged and elderly people from being able to purchase insurance.
So, what should friends in this age group do?Do not panic.
If we cannot afford comprehensive insurance, we can opt for second-best options that cover only cancer and accidents.
For instance, cancer insurance, cancer medical insurance, and accident insurance are all worth considering as supplements.
Lastly, it is crucial to consider the situation for families with lower annual incomes.
For example, families with an annual income of around 50,000, may only have a surplus of 20,000 to 30,000 at the end of the year.
Such families must carefully consider critical illness insurance!
It is not unnecessary; it is very necessary.
The more financially constrained a family is, the weaker their ability to withstand risks. A serious illness can plunge the entire family back into poverty.
However, on one hand, critical illness insurance can cost several thousand a year.
If they purchase critical illness insurance, the financial pressure can become so great that they can't even afford to eat properly, and they might struggle to pay for their children's school fees.It's hard to maintain a normal life, so there's really no need for critical illness insurance.
On the other hand, if the budget is not enough, the coverage will inevitably be insufficient,
A few thousand dollars a month can only buy a coverage of 100,000 to 200,000, which is not significant.
The less you buy, the less you get compensated, and it won't solve the problem if you really get a serious illness.
So what should these families do?
To be honest, families with low income can just provide as much protection as they can afford,
If the pressure of critical illness insurance is too great, prioritize other cheaper but higher cost-effective products.
For example, million-dollar medical insurance, accident insurance, which can also help solve part of the problem when you get sick or have an accident.
02
Apart from the three types of friends mentioned above, no matter adults or children, critical illness insurance must be well purchased.Specifically, when it comes to the "buying" aspect,
from budget to type, from coverage to coverage amount, there are things to pay attention to. Let's discuss these with you slowly.
The first point is very specific, referring to the type of product.
Prioritize consumer-type critical illness insurance and stay away from return-type products.
Return-type products are those that you hope will give you money back, but they charge you a tax on your intelligence.
The premiums for return-type products are several times more expensive, and there may be pitfalls in the responsibilities.
In contrast, consumer-type critical illness insurance offers a higher cost-performance ratio, with adults able to get a good product for around 5,000 per year and children for around 2,000.
The second point begins with the most necessary preparation for buying critical illness insurance:
**Please note that the translation ends here as the original text was cut off.**Establish a family budget.
How to determine it?
It's very simple.
Tally the annual income of the family and the number of people who need to be insured for critical illness insurance.
Generally speaking, as long as the premium expenditure for critical illness insurance does not exceed 10% of the family's income, it is acceptable.
On this basis, you can consider the length of the coverage period.
If the family budget is very ample, there is no need to think much, just go for lifetime coverage.
If the budget is relatively limited, then settle for second best, and insure up to 60 or 70 years old.
In summary, the longer the coverage, the better,
because if the coverage period is too short, it may not cover the onset period of major critical illnesses.Translate the following text into English: Then, let's get down to the specifics of the product.
For the coverage amount, it should at least be configured to around 300,000.
To be clear, purchasing critical illness insurance is essentially about purchasing coverage.
Regardless of the family, the critical illness coverage should at least be able to cover the losses brought by a single critical illness, including treatment costs, rehabilitation costs, loss of income, and so on.
Generally, it is recommended to configure it to cover the loss of income for 3-5 years.
Starting at 300,000, 500,000 is just about adequate.
Finally, summarize the guarantee responsibilities in one sentence:
The basic responsibilities cannot be missing, and the detailed responsibilities cannot be overlooked.
The basic responsibilities mainly refer to minor/intermediate conditions,
The diseases they cover are mostly precursors to critical illnesses and are also very serious in themselves.Once it occurs, it can also put a great deal of stress on the family, so coverage for mild to moderate conditions is absolutely essential.
Secondly, do not overlook some of the more common mild to moderate conditions.
The first three diseases are stipulated by the China Insurance Association and must be included,
while the last seven are based on empirical data and are high-incidence diseases that should be included if possible.
03
Lastly, when it comes to choosing a product, leave the hard and tedious work to the financial experts.
The process is omitted here, and I will directly provide the answer.
Let's start with adult critical illness insurance. The two products I have previously recommended to everyone are still the same:
Darwin 9 and Super Mary 11.Darwin 9,
It has eliminated the grouping for continued compensation of mild and moderate diseases, and has added innovative responsibilities, with a very affordable price.
The details are also more refined, with hospitalization allowance and cancer care gold for mild disease compensation, which are not available in Super Mary 11.
Super Mary 11, more quantity without increasing the price, cancer protection is particularly sufficient.
In the basic protection, cancer extension insurance gold has been added, and the option for cancer allowance has been increased, and the second compensation for critical illness is not limited by type, making it more practical overall.
Both products have their own advantages and are good at different directions. Everyone can choose according to their needs.
If you want to see a more detailed evaluation, just go to the portal: Yes, critical illness insurance should be so rolled up!
Looking at children's critical illness insurance again.
The two products currently recommended are: Little Green Dragon 3 and Hornet 10 Flagship Edition.Xiao Qinglong No. 3 is a preferred product for multiple claims, with practical responsibilities, affordable prices, and very obvious advantages.
The Hornet 10 Flagship Edition, on the other hand, is a preferred single-claim product, reasonably priced, and offers flexible coverage.
Caizi has also conducted a detailed evaluation of these two products before, and the link is placed here: Please intensify the effort in this direction.
In conclusion:
Regarding critical illness insurance,
Caizi's positioning has always been to provide a safety net, and it is recommended that everyone should get it if they can.
However, each family's situation is different, and if there is no spare capacity, don't push too hard.
If there are no conditions, just buy social security or the New Rural Cooperative Medical System.
Consider other insurance products when you are more financially comfortable in the future, and try to find ways to give yourself more room and options.May we all possess the strength to support ourselves and live each day well.