What does the year-end fee mean in Hong Kong insurance?

After graduating from the University of Hong Kong, I worked in AIA AIA. Let me explain the meaning of the base fee and why the base fee is beneficial to the insured when the economic conditions permit. If you have any other questions, please contact me on WeChat: 174776955.

How much is the base fee?

Bottom fee, sometimes called deductible, or deductible in English, is more common in reimbursement insurance, and broadly refers to the loss for which you, as the insured, are responsible for each claim.

For example, you have taken out a travel insurance to protect your property from loss. The upper limit is $50,000, but the bottom fee is $2,000. During your trip, you were stolen a camera with a value of $65,438+0,000. If you successfully apply for compensation from the insurance company, you will only get compensation of $65,438+0,000-2,000 = 8,000.

And if you just lose a watch with a price of $65,438+0,000, you won't get any compensation because the amount is lower than the base fee.

Speaking of this, you may wonder: the bottom fee will reduce the compensation, why is it my friend?

What protection do you need?

When you compare the same type of insurance, you will find that insurance with a base fee will be cheaper. Of course, this is because insurers are willing to bear part of the losses, but in addition, insurers tend to avoid accidents because insurance companies are willing to charge cheaper fees.

The spirit of insurance is to reduce risks, both for policyholders and insurance companies. The lowest cost is high, the premium is low, and vice versa. You pay the fee to reduce the risk, and the insurance company also reduces its own risk through the bottom fee.

Of course, most insurance will also state that the insured has the moral responsibility to avoid accidents, but as we all know, if a fine is imposed on an act that violates morality, more people will abide by morality.

So the bottom fee can actually help you control your own risks. As long as you know your own needs clearly, you can reduce your daily insurance expenses through the insurance with guaranteed cost.

Take medical insurance as an example. If you buy insurance to avoid large medical expenses (small expenses of more than 10 thousand, you can bear it yourself), then you should actually buy insurance with a minimum of more than 10 thousand.

Considering the bottom fee is part of your financial planning, and it also gives you an opportunity to think about life: how much risk can you bear?

Advanced application of base fee

Insurance with different base fees can also make up for your existing insurance. For example, many people work in companies that provide medical insurance, and the compensation ceiling is often not high enough. And when you retire, the medical insurance provided by the company may not be renewed, and it is extremely expensive to buy a new medical insurance. If you bring medical records, the new insurance will treat you as a disease even before you get out of danger, instead of protecting the old ones!

No one wants it to happen when you reach the age when you need medical insurance most, but you can't get the protection you deserve. But when I was young, I often didn't want to spend money to buy an insurance with overlapping protection when the company provided medical insurance.

At this time, your solution is to buy different insurance with the lowest cost to protect yourself.

For example, the medical insurance provided by your company has no minimum payment, and the maximum payment is $500,000. You can buy another medical insurance with a minimum payment of $500,000.

The advantage of this high-cost medical insurance is that the premium is low, and sometimes there are special clauses. When your company's medical insurance expires, it can be converted into low-cost medical insurance, giving you the protection you need and covering your existing medical records.

Therefore, the existence of the bottom fee can help you buy the protection you need at a lower price, and it is really your good friend!

After knowing the minimum payment, do you want to find a suitable medical insurance to make up for the lack of company insurance?