Insurance is something we can see everywhere in our daily life, in our cognition, insurance is to protect our lives, so that even if we are sick, we have funds to help us get through the difficulties, but do you really understand the (pitfalls) in insurance? What are the [pitfalls] in insurance?

Firstly,after purchasing insurance, you cannot get compensation immediately after getting sick.There are many people who think that if they are diagnosed with a serious illness shortly after purchasing insurance, they can get compensation immediately. In fact, not necessarily, critical illness insurance has a observation period. So how long is the observation period of critical illness insurance? The observation period refers to the occurrence of a critical illness within a certain period of time from the effective date of the policy, and the insurance does not pay or only pays part of the insured amount. In general, the observation period for major diseases is generally 90 days to 2 years, and the terms of each insurance company are different.

For example, Ben recently bought critical illness insurance, the observation period of this critical illness insurance is 90 days, if he is unfortunately diagnosed with a major illness covered by insurance when he is two and a half months old, then the insurance company will not compensate, or only a small part of the compensation.

Secondly,high insurance amount does not mean it’s a good insurance.The sum insured should be determined according to the actual situation, not the higher the better, the higher the sum insured, the more the corresponding premium. The choice of insurance amount should not only be based on your financial affordability, but also understand the current medical costs of critical diseases. The cost of treatment of major diseases is usually about 100,000-300,000 yuan, so it is more appropriate to choose 200,000-300,000 yuan for the insurance amount. Critical illness insurance below 100,000 yuan cannot play a protective role, and more than 300,000 yuan is too expensive for ordinary insured people and is not necessary. Don't listen to the insurance salesman advocating that the higher the sum insured, the higher the price you are worth, the better, you have to know that bragging does not require costs, and the cost of increasing the amount of insurance is very huge.

Thirdly，Compensation is based on death rather than serious illness.Among the death insurance benefits of many insurance companies, most companies stipulate the payment of insurance amounts, but some companies stipulate that the "death insurance benefit" is: refund of the premiums paid. If the sum insured is the same, the price is the same, and the deceased does not pay the sum insured, but refunds, be sure to refuse this type of insurance.

Insurance protects our lives and makes us feel safe, but the traps in insurance are everywhere. We must carefully choose the appropriate insurance according to our own conditions to prevent problems.

（Writer：Laurro）