Before facing a serious illness, consider adding a one-year medical or critical illness insurance plan on top of basic medical insurance — just make sure to look for the phrase “guaranteed renewal.”

This kind of insurance covers the part you still pay after medical insurance reimbursement, plus losses from stopping work. Before buying, look for the words “guaranteed renewal”: without them, next year the product may be withdrawn or the price raised. Health status must be disclosed truthfully; concealment can lead to a denied claim. Pay basic medical insurance first, then consider this item.

Cost

For young people, a one-year expense-reimbursement medical plan costs only a few hundred yuan per year. This type of plan reimburses you based on actual medical expenses incurred. A critical illness policy, on the other hand, typically starts at several thousand yuan annually (these figures are rough estimates by the author; no official statistics are available). Purchasing such policies requires you to honestly disclose your health status — a process that takes about half an hour.

Benefit

Regulatory authorities classify such products into two main categories. Medical insurance reimburses you for actual medical expenses incurred, while critical illness insurance pays a predetermined lump sum upon diagnosis of specified illnesses. Both types are designed to cover out-of-pocket costs and lost earnings after basic medical insurance has been applied. Plans with a term of one year or less and no guaranteed renewal clause fall under short-term health insurance. Those with terms exceeding one year or that do include guaranteed renewal provisions are classified as long-term health insurance. “Guaranteed renewal” means that at the end of the term, the insurer must renew the policy under the same terms and at the same premium rate. Insurers are prohibited from encouraging the same individual to purchase multiple expense-reimbursement medical plans with overlapping coverage. Even if you buy two such plans, you can only receive reimbursement for the same expense once. The definitions of critical illnesses are standardized across the industry, covering 28 severe conditions and three milder ones. Malignant tumors, acute myocardial infarction, and sequelae of stroke are among the core conditions covered nationwide since 2019–2020.

Notes

This product is rated B because regulatory authorities provide only definitions and rules, without any concrete figures indicating how much money one can save by purchasing it. “Million-dollar medical insurance” is a marketing term; legally, it is considered short-term health insurance. Plans lacking a “guaranteed renewal” clause may be withdrawn or have their premiums increased the following year — so always verify this phrase in the policy wording. You cannot claim reimbursement twice for the same expense under two separate medical plans; avoid buying multiple such policies. Individuals with pre-existing conditions who fail to disclose them honestly risk having their claims denied. There is a two-year window after policy issuance during which insurers cannot terminate the contract or refuse claims solely on the grounds of nondisclosure; after this period, such grounds become valid. If fraud is detected within those two years, claims will be denied and premiums forfeited. For guidance on which types of losses are worth insuring against, see Section 5, Item 39 (“Losses you cannot afford to bear”). First, make sure you’re enrolled in basic resident medical insurance (see Item 9) before considering this option. The standardized definitions of critical illnesses were issued by industry associations under the guidance of the China Banking and Insurance Regulatory Commission, rather than by government decree.

Sources · 4

1. 银保监会 (2019). 健康保险管理办法（银保监会令 2019 年第 3 号，第二、四、四十一条）. gov.cn/zhengce/zhengceku/2019-12/04/content_5…
2. 中国保险行业协会、中国医师协会 (2020). 重大疾病保险的疾病定义使用规范（2020 年修订版）答记者问. iachina.cn/art/2020/11/5/art_8616_104705.html
3. 银保监会 (2020). 关于使用《中国人身保险业重大疾病经验发生率表（2020）》有关事项的通知（银保监发〔2020〕51 号）. gov.cn/zhengce/zhengceku/2020-11/06/content_5…
4. 全国人大常委会 (2015 修正). 中华人民共和国保险法第十六条（如实告知与合同成立二年后不得解除）. flk.npc.gov.cn/detail?id=2c909fdd678bf1790167…