What is the difference between expensive critical illness insurance and cheap critical illness insurance?


Many people who have bought insurance have had the experience of finding out that one critical illness insurance policy is very expensive and another is very cheap, although the price difference is huge, the sum insured of the two critical illness insurance policies is the same, what is the reason for their huge price difference? If you're curious, then read on in this article and some of the factors that contribute to this difference will be analyzed below.


The longer the critical illness insurance coverage period, the shorter the payment period you will have to wait for and the more expensive this insurance product will be. For example, you can see the difference in the price of the same critical illness insurance for different coverage periods and payment terms: Product A covers you until you are 70 years old, and its payment term is 20 years, so you will have to pay $7,800 per year. product B covers you until you are heavy, and its payment term is 20 years, so you will have to pay $26,300 per year. From this example, we can understand this truth: the longer the insurance coverage, the shorter the time to pay the premiums, and the more the annual premiums paid. The reason is very simple: old age, sickness and death are things that everyone can't escape. It is also easy to understand that the longer the repayment period is, the less the monthly tree repayment will be.


Of course, if an insurance policy has a lot of coverage, then the more expensive it is. Here is a summary of the cost of coverage for products A and B. As we can see, product B is much more expensive than product A. The main reason is that product B includes features such as death and return of premium, which are much more expensive. The main reason is that product B includes features such as death and return of premium, so the cost is much higher, so the price is also several times more expensive. But more protection does not mean better protection. For example, the death, old age care and critical illness of product B are shared, which means you can only pay for one of the three benefits. Product A, on the other hand, doesn't have as much coverage, but it includes critical illness, intermediate illness and minor illness coverage, so it's already a pretty standard critical illness policy.


If you care about death coverage, you can add term life insurance alone, if you are 25 years old male, you just need to pay 20 years, 20 years of coverage, only about 1000 yuan per year. If you are not sure if you should add the return of premium, then this article suggests that there is no need for you to attach it because it is just a kind of blindfold. It means that phase you pay a lot more money, the insurance company takes it and invests it, and then returns some of those earnings to you decades later. But the money will be severely devalued in a few decades. In addition to the above factors, other costs and profits of the insurance company will also affect the price of critical illness insurance.