What to pay attention to when buying insurance for the first time

As an insurance V with close to 20W followers in Zhihu,

Every time as soon as Gongzi posted an article, the comments and private chats were asking me, begging for an insurance V to specifically talk about how to buy insurance? Where to buy? Buy a few? Buy what price?

I wondered, what, am I not always answering this question?

I've been emphasizing these questions over and over again for the past few years that I've been in the insurance industry, and you guys didn't notice?

All right, so I'll answer them again and help you sort through them in the most minimal of white language.

This article is for insurance purists only, so if you already know something about insurance, bypass it and don't waste your precious time.

If you don't understand, remember to like the collection, slowly look at it, read it at any time.

Disclaimer in advance, this article I only provide a buy insurance correct thinking, after all, teach a man to fish is not as good as teach a man to fish.

But the implementation of each person's family situation, needs, budget are different, this article will not do much depth.

The same pair of pants that fit me doesn't mean it's the right size for you.

But as long as you learn this trick, buy insurance whoosh.

This article will be divided into 5 parts: why buy, what to buy, how to buy, for whom to buy, who to buy

Read the article, understand and know.

Why do we need business insurance when we already have social security?

Social Security, it's like our fall coat and pants, it may feel okay when you're at home, but would you go out in it? Once the storm comes, you need to wear warmer cotton clothes and pants, and your fat body is not resistant to freezing.

Just like the 61 days of hospitalization and the amount of money spent of about 1.04 million yuan that broke out some years ago.

In fact, there are other receipts, the total cost of this patient hospitalized for 75 days, has exceeded 1.7 million yuan.

The sky-high medical bills completely blow through Social Security.

This is where some proper commercial insurance is needed to supplement.

If you compare the cost of treatment to a piece of triangular cake, only a small piece of social security can be reimbursed (the white part of the figure):

Before the reimbursement of health insurance, you have to make two cuts, no more than the starting line will not be reported, and more than the limit of non-reimbursement.

The center piece also has to cut two cuts, one cut is the medical insurance will not be reimbursed out-of-pocket expenses, mainly some expensive high-end drugs, such as imported drugs, special drugs.

So do you use it or not, and how long will your wallet last if you do?

The second cut is the non-reimbursable out-of-pocket portion, or reimbursement rate,

so the real reimbursement is often only 60-70%, and the more upscale the hospital, the lower the reimbursement rate.

Seeing it this way, doesn't it seem like the pie is a little too small?

What if it's not enough?

This is the time to reflect the charm of commercial insurance.

The role of commercial insurance is to insure what social security does not.

The following chart, social security does not reimburse the part of almost all have appropriate commercial insurance to supplement:

What out-of-pocket expenses, out-of-pocket percentage, maximum limit, a commercial medical insurance can help you deal with.

Think commercial medical insurance deductible is too high, you also have critical illness insurance premiums ah, this money to pay for (medical insurance) 10,000 deductible, the rest can also be compensated for the financial losses during the illness.

All of the above is what social security cannot do.

So the reason why you need business insurance is simple, so that you don't leave your family in despair during those terrible times you have to face.

Not that Social Security is bad, it's very, very good.

Social Security is a national welfare guarantee for everyone, and it must be paid for.

It's just that social security is the only thing that needs to be supplemented at many levels by commercial insurance.

After it becomes clear why commercial insurance is needed, the real confusion comes out.

I believe that we can usually get access to the insurance is what, can return money, everything is insured, can dividends of this kind.

To tell you, when encountering this type of insurance, how far to avoid how far.

Remember, when you don't have commercial insurance, the first consideration is life and health insurance, the second consideration is financial insurance, and the last consideration is wealth inheritance insurance.

When your life and health can not be protected, how dare you spend money on financial management, impractical insurance? This I would not dare.

Insurance that returns money:

There is a saying that there is no free dinner, and the wool always comes out of the sheep.

The so-called money back, just stretched to a long cycle of natural growth, often interest is not as high as the bank.

And money back, 30 years ago, 10,000 dollars, and 30 years later, 10,000 dollars, can be the same?

You want to have both for the same amount of money,

But the insurance companies are very smart, "take advantage of the insurance company" thing, don't even think about it.

These half-and-half products tend to have a lot of holes in them.

The last thing you need to do is to insure your health and not to insure it well, to manage your money and not to manage it, and to lose out.

"Everything is insured" insurance:

Buy insurance you want to be lazy, trying to save money, be prepared to spend thousands of dollars for nothing.

There are products that claim to cover everything, but in fact they cover nothing.

Bundling several types of insurance that don't sell, and selling them together, claims to cover "everything".

But they cost more for the same liability, and are 50-100% more expensive than buying them separately.

Couldn't be more garbage.

Insurance that pays dividends:

Participating dividends, an oddity in the world of insurance industry pitfalls.

Protection, financial management can not be balanced, since you get a certain amount of dividends, protection is not to sacrifice a little?

This kind of insurance is insured for decades, tens of thousands of tens of thousands of investment, want to take out,

Said that it is high yield, basically only stay in the salesman's words,

The vast majority of the product's actual income is usually less than the bank deposits, said that the protection of the good bar, bought equal to not buy.

The more pitched the insurance, the better it sells, as long as it says "return money", "everything is insured", "dividends", the insurance company will be able to bluff you into submission, do not want to be cut! The first thing you need to do is to get a good deal of money from the company and then you can get a good deal of money.

These types of insurance are the easiest to step on the pit, buy insurance ten buy nine pit, we should pay particular attention to.

Before you figure out what insurance you need, you need to figure out what you need. （

In short, you have to figure out what insurance can be used for before you know how to use it.

Insurance as a risk transfer tool, you need to know what the risks are.

Eating is to solve the problem of hunger, wearing clothes is to solve the problem of sheltering the body from the cold,

Buying insurance is to solve the problem of risk, you need to understand what risks each person is facing before you can get the right medicine.

The risks we face in life, we can use the following "risk funnel" to present:

Gongzi in layman's language, briefly introduce:

(1) unanticipated risk of loss

such as disease, accident, death of a family member, these belong to the unanticipated risk of loss.

For the breadwinner of the family, a serious illness will have a 3-5 year incapacitation period, a steady stream of medical expenses not to mention,

During this period, the home loan and car loan, raising children, supporting the elderly, everything costs money, and will not stop because we get sick, the only thing that stops is our income.

If the breadwinner of the family unfortunately dies or becomes totally disabled, the situation is even more serious, which may bring about permanent loss of income, and may even bring down the whole family.

Like what we come across, medical insurance, accident insurance, critical illness insurance, life insurance,

are all in this layer.?

This layer, the most basic and the most important.

(2) predictable expenditure risk

In the education period and retirement period, money only out of the money, when we can determine a certain amount of expenditure that occurs,

Do a good job to protect the bottom layer of protection, there is still room, you can save a certain amount of money for the two periods:

In the education period, in advance of the children to save a sum of money to go to school or study abroad;

After retirement, save a pension in advance for yourself as a supplement to social security, and enjoy a peaceful old age.

Annuity insurance, like the one we came across, is within this layer.

(3) Ownership Risk

Ownership risk, is the worry of the rich people, who think:

I have money, how to leave it to the descendants.

A range of issues including policy, tax, marriage, debt, disputes over property and so on can have an impact on where the money belongs.

This type of risk is usually addressed through insurance such as annuities and whole life insurance in conjunction with trust vehicles, which we will not focus on.

For the average family, it is important to adhere to the basic principle of "insurance" and prioritize basic protection against illness and accidental death.

First take care of the first layer of risk, and then in order to deepen.

We might as well think about it, assuming that you spend 5,000 dollars a year to buy a critical illness insurance or pension,

When you get sick, the former can provide 500,000 "life-saving" money, while the latter not only take up a few funds, the future of the pension whether you can rely on the 5,000, or is still a variable.

This is what I mean when I say that the first thing to consider is life and health insurance, the second thing to consider is financial insurance, and the last thing to consider is wealth inheritance insurance.

The four policies - medical, critical illness, life and accident - form the last line of defense in our lives. On top of that, one should also consider annuity insurance.

1, critical illness insurance

Critical illness insurance full name of the major diseases insurance, "you" sick "I" give money, is a payment type of insurance.

The payment type means that I don't care what your situation is, as long as you reach the standard of my disease, how much to buy how much to pay, buy 500,000 once to pay 500,000.

Money is really money to you, how to use the reimbursement insurance companies do not care.

For example, cancer, as long as the hospital diagnosed, regardless of whether you cure or not treatment, the amount of compensation for how much.

Whether you want to take the money to go to the treatment, or think there is no treatment to see the world, or want to leave behind, the insurance company does not care.

1) What's the point of critical illness insurance?

The role of critical illness insurance is twofold:

One is for treatment costs, in the absence of supplemental medical insurance, a portion of the critical illness insurance premiums to pay for medical expenses;

The second is to compensate for the income, the treatment, post-surgery recuperation period, you can't work, do not work on no income right, so the car loan mortgage children's education, the whole family to eat, drink and spread out, how to get the cash flow? I don't know how to get the cash flow. At this point, the significance of critical illness insurance is highlighted, compensation for family income.

So the money paid out by critical illness insurance can be used not only for treatment, but also for income compensation during the period of no work.

But for the money to be spent wisely, medical insurance is also needed.

2) What about critical illness insurance?

Even if critical illness insurance as the most complex of the four insurance, picking is not difficult,

Now each product has long been similar, the core protection has been unified by the regulatory provisions of the good, the product more and more tends to homogenization.

Back in 2007, the Insurance Institute of China unified the definition of 25 types of common and highly prevalent critical illnesses, and insurance companies must comply with this specification.

These 25 types of critical illnesses account for more than 95% of all critical illness claims.

The remaining 5%, no matter how you add up your illnesses, add up to 80+ or 100+, affects the edges.

Additionally, the responsibility for high incidence of minor/moderate illnesses must be there, and some illnesses, even if they don't meet the criteria for critical illnesses, the insurance policy can pay out a portion of the sum insured.

Critical illness insurance to buy at least 500,000 coverage, there is a budget for life insurance, additional cancer multiple claims, coverage can also be added to higher.

3) At present there are what is worth buying critical illness insurance

Not considering the budget, hope that the protection is comprehensive: Super Mario Critical Illness Insurance 3 Max, Darwin 3 two are very good choices, diagnosed before the age of 60 years old, critical illnesses more than 80% of the coverage can be said to be a buy-one-get-one-free, and the responsibility of the light and medium illnesses is also the top.

More important product cost-effective: Super Mario Critical Illness Insurance 2 Max, Kanghui Insurance 2.0 two can meet your needs, diagnosed before the age of 60 years of age, 60% more benefits, enough, and there is nothing else to pick.

Budget is limited: you can consider Super Mario 2020MAX, diagnosed before the age of 61 years old critical illness, additional 50% more coverage, cost-effective and very high.

2, medical insurance

Commercial medical insurance, called "you" sick "I" reimbursement, is a reimbursement type of insurance.

Reimbursement we all understand ha, said how much to spend how much to report, to more no.

Medical insurance can be said to be the best supplement to social security, but also more favored by ordinary families.

1) What is the use of medical insurance?

There are two types of commercial medical insurance that people often come across, million-dollar medical insurance and small medical insurance.

Listening to the name,

Million-dollar medical insurance reimburses more than a million dollars, but the annual premium is only a few hundred dollars, which is very practical.

There is usually a 10,000 deductible, and medical bills are only reimbursed if they exceed 10,000 dollars.

Small medical insurance usually has 0 deductible, the reimbursement amount is not high, the management is mainly for minor illnesses of hospitalization or outpatient.

If you only buy a million medical insurance is also enough to use the small medical insurance itself is not a big disease, a small amount of money can be covered.

Spend hundreds or thousands of premiums each year, leveraging a few million reimbursement, the whole quite good.

After paying a 10,000 deductible out of pocket, the rest of your medical bills are basically reimbursed in full.

2) How to choose medical insurance?

Medical insurance according to the degree of importance in three steps to choose:

First of all, choose to renew the conditions of good,

Medical insurance as long as this year does not get sick, this premium will be spent, no more, the second year you need to buy again.

But the second year can not buy another problem, so choose the kind of guaranteed renewal of 6 years, the first to ensure that the 6 years.

Worst of all, go for the kind that you can buy year after year as long as it doesn't go off the shelf.

Then consider the cheaper ones,

Medicare insurance is becoming more and more homogeneous in terms of liability, and the differences are becoming less and less pronounced, so the premiums are also as cheap as possible.

Lastly, look at the value-added services,

Lastly, you can be reimbursed for purchased medicines, there is an expense advance function, access to the green pass, proton reionization therapy, and these practical value-added services, and the rest do not need to pay too much attention to.

3) What are the best medical insurance policies to buy

Beyond Insurance 2020 not only has first-class renewal conditions, with 6-year guaranteed renewal,

but also has cheap premiums, which is more advantageous than Good Health Insurance, and is considered to be the best medical insurance product at present.

If you want even better medical services, you can also choose its Special Needs Medical Edition, and the experience of seeing a doctor will be a little better.

Good Medical Insurance. The long-term medical renewal terms are also top-notch, with 6-year guaranteed renewal.

The highlight of it is that it uses 1 deductible for 6 years***. Assuming you use the 10k deductible in year 1, from year 2 onwards, there is no deductible.

3, accident insurance

Accident insurance refers to external injury insurance, there are reimbursements and benefits.

Accident must be external, sudden, unintentional, non-disease, including cat claws and dog bites, cuts and burns, car accidents and drowning and so on.

1) What is the use of accident insurance?

A normal accident insurance policy will cover a full range of responsibilities, including accidental death, accidental disability, and accidental medical treatment.

Accidental death: if you die in an accident, the insurance company will pay you a sum of money according to the agreed sum insured;

Accidental disability: if you are disabled in an accident, you will be compensated a sum of money according to the sum insured multiplied by the level of disability;

Accidental medical treatment: the insurance company will reimburse you for the medical expenses incurred in case of accidental injuries.

Whatever the outcome, accident insurance can play a role in keeping the compensation you are convinced.

This kind of insurance is very cheap, two or three hundred dollars a year can pry millions of coverage, especially suitable for purchase.

2) accident insurance how to choose?

There are hundreds of accident insurance policies on the market, but most of them are not qualitatively different.

In the case of accidental death, accidental disability, accidental medical three responsibilities are insured to the case, pick accident insurance is only one criterion, as far as possible to choose the cheapest.

There is no need to say more about accidental death, there is no difference.

Accidental disability is uniformly paid according to the level of disability, level 1 disability is the most serious, pay 100% of the sum insured, level 2 pay 90% of the sum insured, and so on, level 10 pay 10% of the sum insured, there is no difference.

The difference can only be in the accidental medical part, but the amount of general have about 30,000, a few hundred deductible, you say this can be how much difference?

3)What are the current accident insurance worth buying

The Dart Supreme is still the most recommended accident insurance, 1 million coverage 298 dollars, 0 deductible unlimited social security reimbursement, not only the responsibility of the full price is also appropriate.

The Daredevil Supreme Edition is the second most expensive product after the Daredevil, and is also priced at $298 (1 million coverage). The downside is that without Social Security reimbursement, Grand Protector will only reimburse 80% of the cost.

4, term life insurance

Life insurance is even simpler, either death or total disability compensation, but also pay insurance.

But it may not be the same as the other three types of insurance, the money is not left to themselves, but to the people behind them.

1) What's the point of term life insurance?

When a person is in the prime of life, the contribution to the family is the greatest, but if this time accidentally hung up, the car loan mortgage children's education fees, the whole family to eat and drink, all pressed on the other half of the body, in the heart of how to bear it?

Life insurance will make you feel that standing is the backbone of the family, down is also a pile of yuan, so that the living can maintain a basic standard of living.

And life insurance and accident insurance can be stacked payout, assuming that each bought a million dollars of coverage, the result of an accident hangs, the living loved ones can get 2 million.

Life insurance, truly an insurance policy that integrates love and responsibility.

2) How to choose term life insurance?

Term life insurance responsibility is so simple, to protect the dead well,

To be honest, picking term life insurance to see is the price, and no other criteria.

It's really a matter of who's cheaper and who buys it.

3) What are the best term life insurance policies to buy

Life insurance is simple, and price is the only criterion, so there's not much to say about specific products.

Optimus 2020 is definitely a solid first place, breaking the all-time low for term life insurance, with cheaper prices for healthier people (Preferred), and more fairness.

Terminal Pillar 1, a former bottom-priced product, has premiums on par with Optimus 2020 (Standard).

5, annuity insurance

Annuity insurance is the "unanticipated expenses" risk protection we talked about in the second part of the story, save a sum of money now, used to solve the financial problems in the future.

After matching the first four types of insurance, you can properly consider annuity insurance.

1) What is the use of annuity insurance?

In short, it is to prevent running out of money to spend in the future.

When you are young, you don't save enough money; you don't manage your money properly, you lose it, you lose it and so on. In order to prevent the situation where you don't have money for retirement or education in the future, you can save a sum of money in advance for it.

2) annuity insurance how to choose?

Buying annuity insurance is to buy the future to determine how much money you can get back.

So it's really only one selection criterion, look at the rate of return

How much return should be clearly written in the contract, to the agreed period of time to get the agreed money, this is the most secure.

But now the best product annualization can only be close to 4% (20 years under continuous compounding), so those who claim to be significantly higher than 4%, is certainly a pit you play.

3) What are some worthwhile annuities currently available?

Pension annuity insurance:

The biggest highlight of Everbright Drillmore is the quick payback time.

After paying a sum of money, you can collect money from the fifth year of the policy, receiving 100 percent of the sum insured in the first year, and increasing the sum insured by 10 percent every year thereafter.

Chinese-Korean Hyatt Future is slow to return capital, but time is valuable, and you will receive more money later. Even in the middle in case you want to surrender the policy, the policy cash value can also reduce the loss of money.

Education annuity insurance:

i baby product design is very simple, a one-time or installment payment of a sum of money, 18-21 years old each year to receive a sum of money. And it also supports increasing the sum insured at any time, so if you feel that the money you saved before is not enough, you can add money.

Xinmei daily form is flexible, you can choose the university education gold, further education gold and university or further education gold, you can take a sum of money at the age of 18-24 years old ranging, and a large sum of money again in the year you are a young man.

Chinese parents are accustomed to what good are first to their children, their own buy or not to buy does not matter, the child must buy.

Wrong! A family, the first to buy insurance is the breadwinner, that is to say, the family who can make the most money, who will buy first. Keep the moneymaker first so the family doesn't cross over.

Even if the kids get sick, the adults can still find a way to get money, but when the adults collapse, it's hard for the kids to look forward to it.

So it's only right to think about the adults first, then the elderly and the children.

If we compare a family to a tree, the adults are the roots, the elderly are the trunks and the children are the leaves, all important but not to the same degree.

First of all, give yourself a good insurance:

Adults as a family pillar, shoulder is the whole family's life, so the risk of protection must be comprehensive, the best four types of insurance a no less, critical illness insurance, medical insurance, term life insurance, accident insurance.

Secondly, then consider buying for the child:

Children's insurance is very good to buy, the premiums are not much, we can be placed behind the adults to buy.

If a child gets a serious illness, do they need adult care? Do you need nursing care if you don't? These spend money. Critical illness insurance can similarly compensate adults for loss of income.

Medical insurance is used to reimburse the cost of treating a child during a period of illness; children are the most prone to accidents, so it is important to buy accident insurance as well.

Life insurance should not be bought for the child, the state in order to prevent some heartless people to kill the child to cheat insurance, has made provisions, 0-9 years old child death can only be compensated for 200,000, 9-18 years old can only be compensated for 500,000, to the child to buy also useless.

Lastly consider buying for your parents:

Over 60 years old, it is particularly difficult to buy insurance, basically belonging to the insurance company to give up that category.

Insurance companies are not stupid, they come to buy insurance companies are easy to lose money. So hurry up and buy while the elderly can still buy.

Focus on medical insurance, the elderly sick hospitalization is common, hundreds of thousands of dollars, leveraging a few million medical coverage, really really very cost-effective stress reduction.

This time the cost of critical illness insurance for the elderly is very expensive, you can not have to consider, or choose the cancer insurance is fine, it only insures cancer, the price will be much cheaper.

Accident insurance to buy, the elderly is also a high incidence of accidents.

Life insurance can not buy, the elderly responsibility is small, most have retired or about to retire, the death of the family economic impact is not great.

Buy which insurance company is good?

Many people buy insurance only pick the big company products, have not heard of the insurance company simply do not dare to buy, you told him what online insurance is cheap, his expression is this,

Some people actually said to me, said I do not take the big companies and small companies and even on the network to go than, there is no comparability to compare to the same level to go than.

Bahahahaha, are you picking an insurance policy or an insurance company?

Selecting the product we will be quiet to select the product, selecting the insurance company need me to say it, offline agents a lot, listen to them to say that the insurance company reputation, brand, certainly better than what I said.

There are also people who say that small insurance companies survive for a very short period of time, and buying their insurance is itself unreliable.

Wrong! Whoever said this must not have thought about it. Domestic insurance companies survive under layers of "pressure" and it's not as easy as you think.

There are eight regulatory mechanisms that govern the insurance company from start to finish, from inception, to operation, to bankruptcy, your policy is even safer than a bank deposit.

At least so far, there hasn't been a single case of an insurance company going bankrupt in the country.

Even if it goes bankrupt, it can be handed over to other insurance companies as a result, and there is also the Insurance Protection Fund to take over, so we won't suffer any losses at all.

And the Insurance Guarantee Fund has only been out three times a ****.

The first time was to help Xinhua Insurance,

The second time was to help China Insurance,

The third time was in 2018, and pulled Anbang Insurance, Anbang smoothly changed into everyone's insurance.

The so-called brand-name companies accounted for two of them, and everyone is still not just as tenacious to survive also live well.

So choosing which "insurance company" to go with isn't really a problem, but whether the product is good or not is what you should be most concerned about.

I have answered this question in detail in another article: Are small insurance companies reliable?

All the questions you have about claims, service, and so on from small and large insurance companies can be answered in this article.

Does a small company have nothing to offer except a low price?

To think so is to prove that you are a layman.

I'll compare two products to know,

One is a big company product, the other is a little-known small company products,

Interpretation, these two products are sold very well, respectively, offline and online channel sales:

How about it?

Do you still have the confidence to say that small company products are bad?

The answer is obvious, the online product liability is no worse than the big companies, even much better.

Doesn't it smell good when you can buy better liability for less money?

The reason the big company product sells for more is because it has a brand premium.

Customers spend more money and buy loneliness.

If it's a piece of cake, the shareholders and the company get too much, and the customer gets too little.

Take advantage of the information asymmetry between consumers who don't know about insurance and those who don't know about low-cost products, and sell you a bundle of many impractical liabilities, and of course the price goes up.

In addition, consumers not only have to pay for the insurance company's advertising and promotional costs, but they also have to pay for the layers of the sales system.

If you think about it, can it not be expensive?

So just to be clear,

The real father of the policy you buy is the entire regulatory system, everyone is the same,

You just need to choose the right "son", you buy the insurance is good enough.

In the end,

It's normal to buy insurance for the first time and not know how to do it.

But before you buy a good strategy is the most basic, not to mention the big, at least you will not buy the wrong insurance.

Generally speaking, taking into account the quality of life of the family, the premiums should not exceed 15% of the annual income as much as possible.

I hope that after reading this article, you can gain something above.

More insurance configurations welcome attention to the肆大财子 buy the right insurance to save half the money