This is a beta course, so its structure, chapters, and examples may continue to change.
How to Choose Insurance
The order for choosing insurance is: accident → medical → critical illness → life; insure the risks first, and only then consider investment-type products.
- Cover the big risks first: accident and medical insurance form your safety net.
- Cover family obligations: if you have a mortgage, children, or dependents to support, consider term life insurance or critical illness insurance.
- Budget comes first: premiums are usually recommended to stay within 5-10% of household annual income, to avoid over-insuring.
- Health disclosure: fill it in truthfully to avoid a denied claim; you can use smart underwriting or manual underwriting to assess your situation first.
- Sum assured: medical insurance is judged by its reimbursement limit, while critical illness and life insurance are judged by how many years of family expenses or debt they can cover.
- Deductible / reimbursement ratio: the key factor for medical insurance; the higher the deductible, the lower the premium.
- Renewal conditions: whether renewal is guaranteed, and whether you can still renew after a product is discontinued or after a claim.
- Waiting period and exclusions: watch out for the usual exclusions (pre-existing conditions, suicide, drunk driving, and so on).
- Single / a newcomer to the workforce: accident insurance + a million-yuan medical policy; with a limited budget, buy the basic version first.
- Married with a mortgage: accident insurance + medical insurance + term life insurance (sum assured ≥ the mortgage + 3-5 years of family living expenses).
- With children: cover the parents first; children can be added accident / medical / critical illness insurance (watch the rates and the waiting periods).
Not necessarily. What matters is whether the scope of coverage, the renewal conditions, the deductible, and the sum assured match your needs — not the price itself.