What should I do if the insurance I bought before is not suitable?

When many friends sort out the insurance policy, they find that some of the policies they bought before are not suitable, such as too little protection, duplicate protection, or excessive premiums.

At this time, everyone will begin to struggle, in the end, is it to continue to hold? Or is it surrender? Or is there any other way?

Today Xiaoqi will give you a science popularization, if you find that the insurance policy is not appropriate, how to deal with it better?

1. What are the losses that will be surrendered?

2. Under what circumstances is it not recommended to surrender?

3. In addition to surrender, what can I do?

1. What are the losses of surrender?

Surrender is divided into two situations, one is surrender during the hesitation period and the other is the surrender during the hesitation period.

After applying for insurance, there will generally be a hesitation period of 10-20 days, and the premium can be refunded in full during the hesitation period;

If you surrender the policy after the hesitation period, you can only refund the cash value, and there may be losses.

At this time, whether the surrender is a loss depends on the size of the cash value.

Life insurance products such as major illness insurance and life insurance have a very low upfront cash value.

Especially in the first few years of insurance, the cash value is often very low, may be less than 10% of the premium, and if the policy is surrendered, it will lose a lot.

It is recommended that you weigh the losses caused by surrender and the benefits of surrender, and then choose whether to surrender.

Financial insurance, such as annuity and increased whole life, is itself bought against the increase in cash value, and naturally it is more cost-effective to wait until the value increase is reversed.

Although some products are indeed low cost performance, it is more advantageous to surrender and re-insure, even so, in some cases it is not recommended to surrender.

1) Deterioration of health

If your physical condition changes greatly after applying for insurance, such as suffering from high blood pressure, diabetes, or some small problems such as nodule polyp cysts;

When re-applying, you will face a lot of additional fees, exclusions, or even denials. At this time, it is not recommended to surrender the reinsurance.

2) Getting older

Many critical illness plans are limited to 55 years of age and cannot be insured against a maximum of 100,000.

In fact, in general, if you are over 50 years old, we do not recommend choosing to apply for critical illness insurance, because there will be a situation where the premium is inverted, which is not cost-effective for everyone.

If you have already bought major illness insurance before, and you are now older, it is not recommended to surrender and re-invest.

3) If a claim has occurred before, the policy is still valid

If your policy has been claimed before, it is not recommended to continue to be covered.

For example, if the major illness insurance has already paid for minor illnesses, but the major illness protection is still valid, and the subsequent premiums are also waived, then there is no need to surrender the insurance.

On the other hand, claims have already occurred, and re-insurance often requires truthful notification, which is not easy to underwrite normally, and even if it is not very good before, it is also a guarantee to keep.

4) The new insurance has not yet passed the waiting period

If you have a new plan that has not yet passed the waiting period, it is not recommended to surrender it.

Because the new insurance does not pay for the waiting period, the old insurance can also provide a protection.

Wait for the waiting period for the new insurance to pass, and then go to the old one to return, so that the protection can be perfectly connected.

If the old insurance policy does not want to be paid, and do not want to refund, we can also choose to reduce the sum insured to reduce the amount of payment, many insurance products will provide the function of reducing the amount of payment.

Reduced Payment: Based on the premiums previously paid and the cash value of the policy, the amount of protection is calculated in one lump sum.

For example, you originally planned to buy a 100-square-meter house, pay the fee in installments, and as a result, you have no money to pay half of it. Discuss with the seller, replace the house with a small house of 30 square meters, pay it in one lump sum, and then do not pay the fee.

However, the amount of insurance that is generally exchanged back in this way is not high, in fact, it is similar to the surrender, but it makes everyone feel that it is not so loss-making.