Insurance Tips

1.The breadwinnerof the family should have sufficient insurance. Insurance is the protection for the pillar of the family. If the orderis disruptedand the insurance is bought for those who are considered toneed the insurance most (many parents prefer to buy insurance for their children first),the insurance can’t help and may evenbecome afinancial burden forthe familywhen the accident happens. The insurance policy will be invalid due to the failure of paying premiums.

2.The essence of insurance is protection, and buying insurance is buying protection. You should make your protectionstrongerbefore consideringother factors.

3.The insurance company will not pay the claim of all accidentsafter you buythe insurance. The exclusionand exemptionclauses have been listed clearly andplease read them carefully before you insure against accidents. Different insurance companies have different exclusions.Even the exclusions of the products of life insurance, criticalillness insurance and accident insurance from the same companyare different.

4.The operation of an insurance company is a commercial activity. You will be given as much as the amount of insurance you insured, and will receive not a penny less/more.Therefore, the purchase of insurance must be based on your own situation as much as possible. You can configure as much insurance as you think you need at present.

5.Aboutthe bankruptcy of insurance companies: since the recovery of the insurance industry in the early 1980s, the number of insurance company has increased from one or two to more than 100 now.They haveexperienced several global financial crises without a single bankruptcy.

Even if the insurance company goes bankrupt, according to the law： “If an insurance company that carries out life insurance business is canceled or goes bankrupt according to law, the life insurance contract held by the company must be transferred to other insurance companies that carry out life insurance business according to the law; if an agreement for the transfer can’t be reached with other insurance companies, the insurance company that carriesout life insurance business designated by Insurance Regulatory Commission shall take over the insurance contract.”The interests of the insurance contractwould not be affectedso there is nothing to worry about.

6.Accident insurance and accident medical insurance are not identical. Accident insurancecovers death, disability, burning and scald. The amount of compensation shall be determined according to the gradeof disabilityand burning and scald. Accident medical insuranceis used to reimburse medical expenses caused by accidental injury. So,when you are choosingaccident insurance, you must pay attention to the scope of insurance liability.

7.There are two kinds of inpatient medical expenses. One is for people with social security, the other is for people without social security.Make sure that you choose the suitable one for your own situation. No matter how manyinsurancesyou have for hospital expenses, or from different insurance companies, the compensation you can get at most is all themedical expenses that occurred. This is also the insurance principle of indemnity.

● When you arebuyingonline short-term health, medical insurance, be sure to find out whether they can guarantee the renewal or not. Otherwise, once you have a claim settlement, the insurance cost would be higheroradditionalexclusions or the extra expense would probably be addednext year. They arehospitalization insurance, accident insuranceand accident medical insurance.Moreover, you need to be clear about the agelimitation of insurance renewal.

● Take your financial situation into serious consideration before you buy any insurance and don’t let itbecome a burden ofyour life.Once you started,don’tcancel itcasually. Otherwise, it is not only losing money but also losing protection.

● The interest rate of a profit-sharing insuranceis uncertain and the data on the project plan isjust for reference. The profit is from interest margin, mortality margin and expensemargin. Interest margin refers to the differences between the real rate of return on investment and the rate of assessment. Mortality margin refers to the differences between the actual rate of death and the rate of assessment. Expense margin refers to the differences between the actual cost and the assessment cost.

● The sumassured to return or pay orthesurvival insurance stipulatedin the contract areguaranteed, and must be paid on time.Even if the insurance company is in deficit,itis the legal obligation of insurance company.

● There is a difference between the advance payment of additional critical illnesses insurance and the additional payment of critical illnesses insurance. The advance payment of the additional criticalillnessesinsurance is paid out of your life insurance coverage. What you have boughtis the right to pay your life insurance premium in advance in the event of a serious illness. The additionalpayment of criticalillnessesinsurance is a kind of insurance for serious diseases, which will not affect the coverage of the main insurance. The prices of the two kinds of insurance are also different.

● Increased value of insurance takes time.If you don’t plan to hold it for a long time, you’d better not buy itat the beginning. When you need money, you can loan from your insurance. If it is not enough, you can withdraw profit and survival benefit which are also calculated according to compoundinterestbutit can’t be deposited again after the withdrawal. So,you will lose much interest. Besides, theloss will be bigger if you cancel your insurance.

● Don’t ask the agent to return the insurancecommission to you, the result of which will be your loss.The agent can’t make a livingwithout commission, and he or she may have toresign.As a result,no one will bein charge of your policy or do after-sales service for you.It will be complicatedwhen you have claim settlement. Even if the agent doesnot resign, the helpless agent would have been firedif thingsare exposed. What’s more, returning commission is illegal according to insurance laws. Agents who are willing to return the commission are alwaysthose who do not have professional ethics.

● Insurance is not available for everyone.The seniorpeople or thosewho have congenital or acquired diseases may be refused by the insurance company orhave the limited coverage. There is a limitation on the amount of death insurance for juveniles, and the amount beyond the limitation is invalid. People who have medical history or exceed the amount of exemption need to have a physical examination.If the resultis below the standard, there is possibility of being refused, added the exclusionsor surcharged by the insurance company.

● From the moment you sign the policy, you can cancelitunconditionally within 10 days, except one-year accident insurance which can’tbe canceled.

● Social security can’t be replaced by commercial insurance. Social security is the most basic protectionwhilecommercial insurance is the supplement to social security. Life is getting better with both social security and commercialinsurance.

● In case of emergency, it is recommended that you inform your agent first. He or she will report the case for you and complete the procedures. If you doitby yourself, understanding discrepancy might happenbecause of the wrong expressionduring the communication of compensation.

● Payattention to the factthat many types of insurance have waiting periods (observation periods). During this period, if accidents occur, you can’t claimeven though you have insurance. Some companies may even terminate the contracts.

● Specify the beneficiary of the insurance, orthe insurance compensation may be usedto pay the debts, andinheritedby family as heritage,whichwill not be able to realizethe function of avoiding debtsand taxes.

● Sign the contract by yourself unless you are a juvenile.Otherwise,the contract is invalid,and you cannot get compensation from the insurance company whenthe accidenthappens.

● The contract is invalid unlessthere is an insurable interest in insuring another person. The designated beneficiary must be legal, orhe or shecannot claim the insurance benefits.

● If there is a dispute with the insurance company about the claim settlement, be sure tokeep the evidenceand you can file a lawsuit either at the local insurance trade association or at a competent court.

● After the insuranceacceptance comesinto effect, the insurance contract should be kept properly because itis the proof of the insured participatingin the insuranceas well asan important basis for the payment of compensation in the future. It should be kept carefully, and it is better to copy down the insurance policy number.It is also recommended that insurance contracts be sorted out annually to seeif any new insurance is needed.

●Informthe insurance company if there are major changes, such as the change of job, address, insurance amount, beneficiary, etc. The written approval of the insurance company shall be needed if necessary.

●What is the most important thing is buying the insurancefromthe right agent.Anexcellentagent must be qualified with professionalism, integrity, sense of responsibility, a good mentality, comprehensive and systematic knowledgeand noble personality. They can make arrangementfor your good andwill not recommend youbuy unsuitable insurancefortheirown benefit.They will try to help you save premium costs and make your insurance more comprehensive. An excellentagent does a good job of after-sale service.