What are the pitfalls of insurance? How to avoid pitfalls? What should we pay attention to?

As for insurance, many novices who are new to it often don’t know much about it.

Then the senior sister will tell you about the role of insurance and whether it is really worth buying. Don’t miss it!

Senior sister will give you a detailed introduction, everyone is welcome to take a look!

Since there are many professional insurance terms below, in order for everyone to read the following more intuitively, you may wish to read this article first:

"Super Complete!" Everything you want to know about insurance is here》

1. What is insurance? What's the use?

Insurance refers to the insurance company's liability to compensate for property losses caused by possible accidents as stipulated in the contract, or when the insured dies, becomes disabled, becomes ill, or reaches the agreed upon age. A kind of non-physical commodity that bears the responsibility for paying insurance benefits according to age and term.

Senior sister will tell you about the four major pillars of insurance: critical illness insurance, medical insurance, life insurance, and accident insurance.

1. Critical illness insurance

Critical illness insurance is a benefit insurance. Once the insured suffers from a major illness specified in the contract, the insurance company can normally provide a lump sum of compensation.

This insurance money can be used flexibly and can be used for treatment or to cover loss of income.

2. Medical insurance

It is a reimbursement insurance. Reimbursement is based on medical invoices. The reimbursement amount cannot directly exceed the actual expenses. The insurance company will bear the cost of the insured. Reasonable and necessary portion of medical expenses.

3. Life insurance

The simplest form of protection, which generally provides direct death/disability protection.

It can transfer the economic risks caused by the early death of the breadwinner of the family, making the family more harmonious and loving.

If divided according to the protection period, they are whole life insurance and term life insurance: the premium price of whole life insurance is not cheap, but it actually focuses more on wealth inheritance; term life insurance actually has lower premiums and higher cost performance. It is a more suitable purchase choice for the public.

4. Accident insurance

Provides the insured with protection against death, disability or outpatient or hospitalization treatment due to accidents.

Accident insurance is not expensive. If you want to buy it, it only costs a few dozen yuan at least. Any family can easily buy it.

If you want to know more about these four types of commercial insurance, you can click on the article below to view:

"What are the differences between critical illness insurance, medical insurance, accident insurance and life insurance?" Will there be any conflicts during claims settlement? 》

2. Is it really worth buying insurance?

Why do I have to tell you repeatedly that these four major personal insurance types are actually quite worth buying? That’s because these four major personal insurance types can give us strong protection.

1. Medical insurance + critical illness insurance (effectively transferring the risk of critical illness)

There is actually a very exciting episode in "A Little Red Flower for You":

A boy named Wei Yihang was unfortunately diagnosed with cancer. He cried and talked to his parents: "You are so desperate to save my life, which will only make me feel more and more like a burden, and I don't feel that either." This is something that I am grateful for!"

The child unfortunately contracted cancer, and the whole family was in trouble. People around him said to the boy, "It's difficult for you to have the disease, and it's even harder for those around you." .

Gradually, the boy Wei Yihang emerged from numbness, indifference and self-abasement, and began to understand the difficulties and hardships of his parents, from being world-weary to cherishing every second of his life.

If a member of a family unfortunately suffers from a serious illness, the entire family will undoubtedly be in trouble and suffer a double blow, both mentally and financially.

There are countless cases of people returning to poverty or becoming poor due to illness. It is difficult for us to guarantee that we will not get any disease in our lifetime. When risks come, we might as well choose to purchase insurance to prepare for a rainy day.

Choosing to purchase critical illness insurance + medical insurance is a very correct choice, as the disease protection we get is very powerful.

Medical expenses can be reimbursed through medical insurance, while other expenses can be compensated for losses through the insurance money paid by critical illness insurance.

2. Term life insurance (transfers the risk of premature death)

If the family breadwinner suddenly encounters misfortune and dies young, the financial income of the entire family will definitely be significantly reduced.

Then the mortgage and car loans need to be borne by the family, and the entire family cannot escape the double economic and spiritual blow.

Term life insurance has the function of transferring the risk of premature death. If you unfortunately die, the insurance company will also compensate the family a sum of money, which can help the family's daily living expenses, and let love and Responsibility is extended.

3. Accident insurance (transfer of accident risks)

Accidents and risks are actually around us, like falling, being bitten by cats and dogs, car accidents, etc.

Although we cannot foresee which one will come first, the accident or tomorrow, we can transfer the damage caused by the accident risk by configuring an accident insurance.

And the most important thing is that accident insurance is affordable and has high leverage. You can buy products with insured amounts of hundreds of thousands or even millions for just tens to hundreds of yuan, even if you don’t have enough budget. Groups of people can also be configured.

3. Senior Sister’s Summary

In general, insurance is worth buying. Once the risk comes, it is already too late to buy it!

However, it should be noted that people of different age groups have different priorities in configuring insurance. The considerate senior sister has compiled three sets of insurance plans, which can provide insurance for a family and bring benefits to the entire family. Come for more robust protection! Interested friends may wish to take a look:

"3 sets of plans to provide insurance for the whole family"

Write it at the end

I am a top student. Insurance, focusing on objective, professional and neutral insurance evaluation;

If the above content has not solved your problem, you can also come to the official account Xueba to talk about insurance consultation with me;

I will give you the most professional advice based on my many years of experience in configuring insurance for 10W+ families.

Public account: Top academics say insurance costs less, buy the right insurance!