Monday, 7 September 2020

How to buy commercial insurance

commercial insurance

Insurance is a very complex financial product, and there are certain “cognitive barriers”, so there will be some difficult questions.

Whenever I see such a problem, I always feel a sense of powerlessness of “I want to say something but I don't know where to start”.

Of course, it's normal to ask like this, and it's no problem to ask for a plan.

The key is that most of these problems occur during the first communication, and even less than 10 sentences are chatted. Two sentences are asking for an insurance plan.

It feels like seeing a doctor, “Doctor, I'm not feeling well, please help me with a pill to cure it.” There is no preface or even a follow-up.

Of course, it is not very rigorous to take treatment as an example, but it is essentially the same.
I have always emphasized that the presentation of the plan is the last step. There are tens of thousands of products from more than 200 insurance companies on the market, and offline products sold online and offline have their own advantages and disadvantages. what product to buy must be the final conclusion. .

Before that, we must at least figure out two major issues.

What is the purpose of buying insurance? What problems do I need to solve through insurance? (Clarify insurance requirements)
What factors affect the choice of insured products? How to buy insurance is best for me? (Find the best solution)

1) Where are my concerns? What problem do I want to solve through insurance?

Worried about getting cancer and can't spend hundreds of thousands to treat the disease?
Low percentage of social security reimbursement? Can't reimburse self-paid drugs and imported drugs?
The family's economic pillar collapsed, no one repaid the mortgage or car loan, no one took care of the children and the elderly?
Worried that the accident will come before tomorrow and I will be caught off guard?
Or do you have no suitable financial management channels and want to obtain stable income through insurance and achieve precise wealth inheritance?


If you are worried about accidental risks, then you should not buy critical illness insurance, but an accident insurance first. It only costs a few hundred dollars for a million insured amount;

If you are worried that in case you have a three-year-old child, no one takes care of your children, and your wife remarries without a dowry, you should not buy annuity insurance/universal insurance, because fixed life insurance can solve your problem;
Or you don’t know what you’re worried about, just watching everyone buys it, and you feel vaguely uneasy. Then you should at least understand what types of insurance are on the market?
Therefore, insurance is not a panacea. Each type of insurance has its own specific protection function. If you don't know your needs, you will never buy the right insurance.

So what are your needs?

It's not that the salesperson takes the product out of the plan, but it requires you to think carefully before applying for insurance.

After you have some basic ideas, combined with your own situation, I will help you realize it. This is the correct posture to buy commercial insurance.


2) What issues need to be considered before applying for insurance?


Commercial insurance is a contract signed between the insured and the insurance company, which is essentially a commercial product.

The insurance premiums required to purchase such products are definitely not a small figure, not to mention that personal protection is not trivial, so the choice of products is particularly troublesome.

So from our insured’s own consideration, what points should we pay attention to?

A) Existing insurance combing:

First of all, there must be social insurance. If there is no social insurance, it does not mean commercial insurance. Social insurance is a national welfare, and its importance need not be said.

In addition, some insureds may have other commercial insurance policies in their hands, such as the sixth insurance that they have bought before, that their parents bought for themselves, that the company uses the sixth insurance as a welfare configuration, and so on. When we are working on a new insurance plan, we need to sort out the existing insurance policies first, and we should make up for what is missing.

The more important point is that in the process of sorting out the old insurance policies, we will gradually figure out what the protection responsibilities of the existing insurance policies are, and how we should increase the insurance.

In reality, there are already existing insurance policies that pay tens of thousands of dollars a year. How many people don’t know what they are going to cover.

I have already paid for a few years and I don’t know the content of the insurance. It must be more difficult to apply for a new policy.

Therefore, when applying for new insurance, it is really necessary to sort out the old insurance policies.

B) Annual premium budget:

The purpose of commercial insurance is to protect our existing quality of life from harm as much as possible. The insurance premiums for buying commercial insurance must not seriously affect our quality of life first.

Many people do this kind of messy things. I have even seen a family with an annual income of 100,000. A family of three has an annual premium of more than 30,000, and there is not even a large medical insurance policy. Now every year Renewal is a headache.

I can't say how appropriate the budget is, because each person's annual income is not completely positively correlated with his assets, and does not affect the quality of life. In the future, there will be no too much pressure to pay annual fees.

C) Physical health status/occupation category:

Commercial insurance is essentially profitable, and the rate of health insurance is calculated based on the prerequisite that “the majority of insured persons are healthy”.

Therefore, the “health notification” item will appear in the health insurance process.

If the insured's body has certain health abnormalities that do not meet the above-mentioned inquiries, the insurance company needs to be informed according to the principle of excellent faith, and the insurance company will give advice on whether to accept the insurance based on the insured's specific health status. This is what we usually call “Underwriting” (Of course, some products do not provide underwriting. As long as any item in the health notice is not met, the product cannot be insured)


From the insured's point of view, the standard body>Addition fee> Excluded liability>Extension>Refusal

Of course, different insurance companies and different products may have different risk assessments for the same insured’s health abnormality, and the underwriting conclusions given may also be different.


This requires us to combine our past insurance experience and choose the insurance products that have the best possible underwriting conditions to ensure, to best benefit the insured.

Therefore, the health status of the insured is a very important factor in which product we choose.


What? Not tell the truth? Then I advise you not to waste this money to buy insurance.

D)  Acceptance of commercial insurance:

  • Are the products of large companies better than small companies?
  • Is Hong Kong insurance more advanced than mainland insurance?
  • What happens to my policy if the insurance company goes bankrupt?
  • Is Internet products reliable?
  • Is the insurance on Ali pay well for compensation?


If none of the above questions are a problem for you, then I believe you have done your homework, and I would like to give you a thumbs up.

However, questions like this are asked almost every day.

I will not elaborate here, but only one point: Mainland commercial insurance is under the supervision of the Banking and Insurance Regulatory Commission of the People's Republic of China, and its operation and supervision mechanism is at the same level as that of Mainland banks.

But these are also very important considerations for many insureds to choose insurance products, even if they are not necessarily reasonable.


3) From “I want to buy” to “I want to buy”


You can do a little experiment and post a sentence in the Moments of Friends or Post Bar forum: “I recently considered buying insurance.” Within a day, the demons will be dancing.

Ping An: Ping An's top 500 in the world, too big to fail; Ping An F u NB, protects from beginning to end
China Life: The big brother of China Life Insurance, my dad is the central government, safe and rough!
AI A/CI TIC Prudential: Foreign insurance companies arrive, you are all villagers. (Although it is nonsense)
Hong Kong AI A/Xincheng/the Forties: Asset allocation in US dollars, mainland insurance is rubbish.


Did you see it? This is “you want me to buy”, no matter the three or seven twenty-one, our product is the most NB, if you don't buy it, it is SB.

Have a policy before? It doesn’t matter if you have one more;

budget? The more the better;

Health notification? Our teacher said that you don't need to tell me this is a small problem.

(I didn’t target anyone, just in the entire insurance industry in DISS)
This reminds me of a sketch performed by Teacher Zhao Lirong and Teacher Gong Hamlin in the 1990s:

In the end, you fall into a strange circle. You compare the plans prepared by the agents of different insurance companies everywhere, and you feel uneasy. Then you find a new salesperson to provide a new insurance plan for comparison.

And just forgot, your motivation to buy insurance in the first place.

You forgot that it was “I want to buy”.

You have the final say what you want to buy.

The role of the salesperson is only to explain some basic principles of commercial insurance, introduce the different forms of products on the market, translate the terms of the recommended products into concise and easy-to-understand language for you, and analyze the advantages and disadvantages of the products for you to choose;

And you only need to find a balance between your premium budget and product insurance liability.

This is “I want to buy”. Your age/budget and physical health are right here. Just find the product that best matches your needs.


4) not the end of the end:

Nowadays, the commercial insurance products on the market are rich and colorful, and a hundred flowers blossom, which is definitely a good thing; but if you keep on your laurels and focus on the few common and optional insurance products in the local offline market, you will really disappoint. After so many years of development in the insurance industry.
Of course, everyone has their own ideas, “Your tastelessness is not necessarily his honey.” It is good for business to feel at ease.

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