Critical illness insurance is a personal health insurance with the health of the insured as the target. When the insured reaches a certain major disease or disease severity agreed in the insurance clauses or performs an agreed operation, such as malignant tumor, stroke sequelae, coronary artery bypass grafting, etc. As a risk, it pays for serious illness claims. Many critical illness insurance includes life insurance liability, and you can get compensation for the death of the insured, but this is not the main function of critical illness insurance.
There are the following differences:
1. Different subject matter of insurance: Life insurance is life insurance with the life of the insured as the subject matter and the life and death of the insured as the payment condition; Critical illness insurance is a kind of health insurance that takes the health of the insured as the insurance object and pays the insurance money when the insured suffers from illness.
2. Different liability for compensation: life insurance pays compensation when the insured dies or is totally disabled; When the major illness diagnosed by the insured is within the scope of the insurance contract, the critical illness insurance is paid.
3. The basis of premium calculation is different: the premium of life insurance is calculated according to the death rate of the insured, while the premium of critical illness insurance is calculated according to the probability of the insured suffering from major diseases, and it is also calculated with reference to the physical examination of the insured before insurance, so people in poor health are easy to refuse insurance or increase the premium when taking out critical illness insurance.
4. Different functions and meanings: Life insurance pays compensation to the designated beneficiary or legal beneficiary when the insured dies, which conveys the love of the insured, continues the economic life of the insured, and is the embodiment of love and responsibility. The premium of critical illness insurance is often paid to the insured, which is used to prevent the insured from giving up treatment or having to work in spite of illness to earn income to maintain his life because of the high treatment cost caused by major diseases and the basic living expenses when he can't work for a long time in the later stage of rehabilitation, so critical illness insurance is sometimes called income loss compensation insurance. Many critical illness insurance includes life insurance liability, and you can get compensation for the death of the insured, but this is not the main function of critical illness insurance. At present, there are also some serious illness insurance that does not include death liability, and the premium is relatively cheap.