Critical illness insurance is indeed very expensive, more than 10,000 a year is common, and it is twenty or thirty years to pay it, and there is indeed a relatively large pressure to pay after buying.
Can you not buy critical illness insurance and replace it with other types of insurance, such as increased whole life insurance?
To answer this question, we need to first understand the functions of these two types of insurance.
1.Critical illness insurance
Critical illness insurance is essentially an income compensation insurance that pays you a large sum of money if you are diagnosed with cancer or other critical illness and meet the conditions in the terms.
And what you can do with this money, you can do whatever you want, you can treat diseases, you can buy nutritional products, you can make yourself happy, and you can leave it to your children.
Anyway, the point is a lot of money, remember that first.
2.Increase your life expectancy
The essence of Incremental Life is that the sum assured continues to grow at a rate of 3% after the end of the premium payment period, and the cash value of the policy continues to grow at a rate of 3% like the sum assured.
Cash value is simply understood as "how much the policy is worth at the moment", that is, the money that your policy can be realized at any time.
That is to say,After a relatively long period of time (generally twenty or thirty years), the increase in life expectancy can also become "a lot of money".
Do you see the similarities and differences between critical illness insurance and life extension?
In fact, the so-called critical illness insurance is only an insurance.
Insurance pays money, not cures. Critical illness insurance does not cure your critical illness, it only pays you a sum of money.
Therefore,If you have "a lot of money" yourself, such as bank deposits, or increased life, then you really don't need to buy critical illness insurance.
SoTo some extent, Extended Life Insurance can be an alternative to critical illness insurance.
However, there is a downside to increasing the number of peopleThe initial cash value is low.
During the premium payment period, the cash value of Incremental Life is much lower than the premiums paid.
Even after a few years, the cash value exceeds the premiums paid, but it will only grow at a rate of 3%, and at this growth rate, it will be "a lot of money".It takes a very long time, in generalIt has doubled in about 30 years.
If critical illness insurance is replaced by an increased life, what should I do if a critical illness occurs during the twenty or thirty years when the increased life expectancy is still rolling?
There are several solutions:
1.Surrender of Incremental Life Insurance
Although at this time, there is not much money that can be realized by surrendering the insurance and increasing the amount of life, but no matter what,It's better to have a sum of money than nothing in the event of a critical illness, isn't it?
2.Buy a consumer-based critical illness insurance to supplement it
Use a regular consumption-based critical illness insurance, such as critical illness insurance for 20 years, to cover the critical illness risk for those 20 years.
Consumption-based critical illness insurance is about four or five thousand yuan a year, which is much cheaper than return-based critical illness insurance, and I believe most people can afford it.
If you ask me which of these two plans, pure increased life or increased life + consumption-based critical illness, I can only say,It depends on your insurance philosophy.
If you're anything like me,I think that the surname of insurance is Bao, and the money to buy insurance is to be consumed, and it doesn't matter if you can't get it back, then the plan of consumer-based critical illness + increased life is very suitable.
On the one hand,It has critical illness coverage for 20 years.
On the other hand, in terms of payment, as long as you have passed the first few years of incremental life payment, you only need to pay the premium of term critical illness insuranceThe payment pressure is much smaller than that of return-based critical illness insurance.
If you can't accept that your premiums are being consumed (in fact, most people can't accept this), then you have only two options left: returnable critical illness insurance or increased life.
It can only be said that it depends on your spending power.
The pressure of return-type critical illness insurance payment is really heavy, starting from 10,000 yuan, and it will take twenty or thirty years to pay.
The increased life is better, and there is no need to pay the premium after the payment period has passed, but the protection of critical illness will be relatively poor for a long time, or even almost none, until this increased life rolls into "a lot of money".
There is no perfect solution, only the best one for you.