Understand the basics of insurance in one article

Today let’s talk about the basics of insurance.

You must know this knowledge. Just like when we find a job and enter a new company, we must understand the salary of the position we are interviewing for, what are the company benefits, and whether there are any Overtime compensation, etc.

Although the following is the most basic knowledge, it will be of great help to you in selecting products and making claims. Otherwise, if we don’t understand the basic information and buy the product, it is very likely that the purchase will not be suitable. our products.

Basic concept

After the insurance company makes a reasonable prediction of the risk, it collects everyone’s premiums and establishes an insurance fund, allowing the majority of people to bear the losses of a few. When a person has an accident stipulated in the contract, the insurance company will compensate the insured for the property loss.

6 periods

Guarantee period: The time specified in the insurance contract, also called the insurance period.

Payment period: refers to the date when insurance premiums should be paid.

Hesitation period: Some people may regret buying the insurance, so they can apply to surrender the policy during this period. The insurance company will refund the premium you paid after deducting the cost of the insurance. The general period is 15 days. , if you are over 55 years old, the general period will be relaxed to 30 days, so the insurance company is quite user-friendly.

Waiting period: This means that during this period, even if you encounter the situation stipulated in the contract, you will not be able to obtain insurance compensation. This period is called the waiting period. The purpose is to prevent some people from taking insurance compensation. It is not uncommon for people to take out insurance against illness and know that an insured accident will occur, so they immediately take out insurance to obtain a high premium. Therefore, in order to avoid this situation, insurance companies set up a waiting period.

Grace period: refers to the grace period that the insurance company will give you if you fail to pay the renewal premium on time, usually 60 days.

2-year defense period: When we buy insurance, we need to truthfully tell the insurance company about our situation, so that they can judge our risk and decide whether to let us insure. Once the contract is established, within 2 years , the insurance company discovered that we had not told them the true situation before. The insurance company has the right to terminate the contract or increase the premium. Even if the situation stipulated in the contract occurs during this period, they also have the right not to compensate. However, if the contract is established more than 2 years later, , the insurance company discovered that your situation was not explained clearly, so even if an accident stipulated in the contract occurs, they must pay the insurance money.

6 basic understandings

Liability exemption: the situation when the insurance company does not pay compensation.

Policy exemption: Also known as premium exemption, it means that during the payment period of the insurance contract, after the policyholder or the insured reaches certain specific circumstances, the insurance company allows the policyholder to no longer have to pay subsequent premiums. . This can save a lot of money. Therefore, we can use this as a reference when selecting insurance products.

For example, if the insurance contract includes an insurance premium exemption for minor illnesses of the insured, that is, if the insured develops a minor illness as stipulated in the contract during the contract period, not only can the insured receive a claim, but he will not have to pay any subsequent payments. Insurance premium paid.

Tell the truth: When we buy insurance, we will fill in some information such as occupation, health level and permanent residence. This information must be described comprehensively and truly, and cannot be deliberately concealed, otherwise a contract will occur in the future. Under agreed circumstances, the insurance company will also refuse to compensate for this reason.

Cash value: The money you get back when you surrender the policy.

Early payment: During the validity period of the main contract and one year after the effective date of the policy, the insured is diagnosed as having a terminal serious illness by a hospital recognized by the insurance company, and the insured person is diagnosed by the insurance company’s physician as suffering from a terminal illness. People whose diseases cannot be cured by current medical technology, and whose average survival time is less than six months based on medical and clinical experience, can apply for "advance insurance benefits" from the insurance company, but the application is limited to one time.

8 Daily Vocabulary

Hospital: refers to the hospital specified in the insurance contract. If there is no explanation, it generally refers to Level 2 or above in the hospital grade classification of the Ministry of Health. Hospital. Does not include rehabilitation hospitals or wards, psychiatric hospitals, sanatoriums, nursing homes, alcohol or drug rehabilitation centres, psychiatric and psychotherapy centres, emergency or outpatient observation units, secondary or tertiary hospitals without appropriate medical staff or equipment, combined hospitals or Joint Ward.

Specialist: A specialist should meet the following four qualifications at the same time:

(1) Have a valid "Physician Qualification Certificate" of the People's Republic of China and the State;

(2) Have a valid Physician Practice Certificate from the People’s Republic of China and the State, and register with relevant departments on schedule;

(3) Have a valid Physician Practice Certificate from the People’s Republic of China and the People’s Republic of China "Physician Professional Title Certificate" with the title of attending physician or above;

(4) Engaged in clinical work in the corresponding department of a second-level or above hospital for more than three years.

General insurance companies stipulate that after an accident stipulated in the contract occurs, the insured must receive treatment from a designated doctor at a designated hospital, otherwise they have the right to refuse compensation, so be sure to remember the content here!

Critical illness: Critical illness refers to a disease that costs a lot of money to treat and seriously affects the normal work and life of the patient and his family for a long period of time. It generally includes: malignant tumors, serious cardiovascular and cerebrovascular diseases, Surgery requiring major organ transplantation, injuries that may cause lifelong disability, advanced chronic diseases, deep coma, permanent paralysis, severe brain damage, severe Parkinson's disease and severe mental illness.

Mild disease: It is the early symptoms of a major disease or a milder disease. If the claim standard for major diseases is not met, the insurance company will also pay a certain amount of insurance to facilitate early treatment for the customer. Simply put, minor illnesses are illnesses that do not meet the standards for critical illness compensation.

Accident: refers to an external, sudden, unintentional, non-disease objective event that causes physical harm.

Motor vehicle: refers to a four-wheeled or above-wheeled vehicle for passenger use that is driven or towed by a power device and can be legally driven on the road.

Okay, that’s it for today’s little knowledge. I will talk about insurance with you later. See you next time.