In many people's minds, critical illness insurance covers the risk of critical illness.
However, many products now include the risk of death.
Some of them come with their own liability for death, while others appear as additional liability.
So, is the death liability of critical illness insurance the same as the protection of life insurance? With the death liability of critical illness insurance, do I still need life insurance?
The death benefit of critical illness insurance is actually a lump sum payment when the insured dies or becomes totally disabled.
It sounds similar to the protection responsibilities of life insurance, but there is actually a difference.
The death liability benefit of critical illness insurance is not absolute, but has the ability to pay for death compared to critical illness compensation.
After all, critical illness insurance with death liability pays for death, requiring that no critical illness claims occurred during the coverage period.
If a critical illness claim has occurred, then death cannot be claimed.
This means that the death benefit of critical illness insurance does not cover both critical illness and death.
For example, in the case of a single-payment critical illness insurance, the insurance contract is terminated after the critical illness is generally issued.
If it is an extreme situation, such as suffering from a critical illness but failing to overcome the disease, it is impossible for a critical illness insurance with death liability to pay both critical illness and death.
For critical illness insurance with death liability, the specific amount of insurance benefits paid for death also depends on the provisions of the contract.
Generally speaking, it is one of the total premiums paid, the cash value of the policy, and the sum insured.
The premium is definitely the least, so it is better to cover the death liability with the cash value and the sum insured.
To pay the sum insured, the conditions to be met are also relatively stringent: no critical illness claim, death within the benefit period, and the death benefit sum insured stipulated in the contract.
Therefore, critical illness insurance with death protection cannot replace the role of life insurance at all.
Moreover, the protection of critical illness insurance and life insurance is different after all.
Even if critical illness insurance has death protection, its main protection direction is critical illness, preventing us from financial risk caused by critical illness.
Life insurance, on the other hand, mainly emphasizes our death benefit during the insurance period, regardless of whether the cause of death is related to illness or not, life insurance will pay.
In this way, life insurance is more stable for death protection, while critical illness insurance with death liability is not so stable.
It is also important to note that critical illness insurance with death liability is not cheap.
For example, for a certain critical illness insurance, a 30-year-old man insures 450,000 yuan of the sum insured, which is guaranteed for life, paid in 30 years, and the annual premium excluding death liability is 6,210 yuan.
The premium including death liability is $8,491. This difference is already outrageous.
And if we choose to buy a critical illness insurance with a term life insurance, the estimated premium may only be two or three thousand.
These premiums saved are enough to configure a particularly complete set of insurance protection.
In this way, the death liability of critical illness insurance can be considered if the budget is sufficient.
However, if you are on a budget, it is best to consider a regular critical illness insurance product and pair it with a term life insurance.
The death liability of critical illness insurance can be used as a point for us to choose products, but it cannot be used as a very important measure to influence our choice.
In general, there is a difference between death benefit and life insurance in critical illness insurance.
When we select products, we should also start from our actual needs and choose products that are suitable for us.