China Life Insurance Qujing Branch: Important Matters for Critical Illness Insurance Coverage

In response to recent feedback from some customers who purchased critical illness insurance without fully understanding the coverage details, China Life Qujing Branch issues the following precautions to help insurance consumers establish a rational understanding of critical illness insurance and protect family security. We remind all consumers to approach the insurance process rationally and prudently:

1. Before Purchasing — Accurately Identify Your Needs

1. Before engaging with any insurance product, please communicate with family members or a professional, trustworthy insurance advisor to clarify what risks you most want to transfer.

2. Be sure to clearly express your core concerns to the salesperson and request targeted information about products that can meet those needs.

2. During Purchase — Personally Review and Understand the Terms

This is the most fundamental and important step to protect the rights of insurance consumers. Please pay attention to the following:

1. Focus on “Insurance Responsibilities” and “Exclusions”: These are the core of the contract. For critical illness insurance, read each clause carefully to understand the types of illnesses covered and their specific definitions, so you know what is insured and under what circumstances coverage is excluded.

2. Do not trust any verbal promises: The effectiveness of the insurance contract is based on the written document signed by the consumer.

3. Make good use of “dual recording” and phone follow-up: When purchasing long-term personal insurance products, actively cooperate with recording (audio and video “dual recording”), which is not only a regulatory requirement but also key to documenting the sales process and clarifying responsibilities. When receiving follow-up calls from the insurance company, listen carefully and answer truthfully according to the contract terms.

3. After Purchasing — Be Cautious with “Policy Cancellation” Decisions

1. Significant financial loss: When canceling a long-term policy, the refund is based on the policy’s cash value. In the early and middle stages after purchase, the cash value is usually much lower than the total premiums paid, so canceling will result in a direct loss of principal.

2. Loss of coverage and difficulty reapplying: Canceling terminates all coverage immediately. Reapplying later may face increased premiums due to age, or rejection or exclusions due to health changes, which can be a costly mistake.

3. Prioritize using policy benefits: If you consider canceling due to short-term financial needs, first consult with the insurance company to see if your policy supports “policy loans” or “reduction to paid-up” options. These methods can help address urgent financial needs while retaining some or all of your coverage.

Insurance is a long-term commitment built on love and responsibility. We hope every insurance consumer can understand their policy clearly and hold it with peace of mind, so that insurance truly becomes a solid shield to protect families at critical moments.

China Life Qujing Branch

【Source: Palm Qujing】