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Mr. Zhou Peter graduated from clinical medicine department of Shanghai Jiaotong University with a bachelor’s degree, and then obtained a graduate degree in economics from Nanjing University. Now, he works in the general manager’s office of AIA China Jiangsu branch. He has been a doctor for three years and an insurance senior practitioner for 20 years. Here’s Peter Chou’s recorded notes in AIA live studio in March 2020.
The straightforward, promising and honest language of the old and the young brought Peter Zhou a sense of justice, a trustworthy, frank and kind image. But this doesn’t mean that he is only good. In a calm speaking speed, he builds the insurance awareness of the public, and at the same time criticizes the construction and screening thinking, warning people that danger is the original appearance of the jungle world. People who really devote themselves to life are never ignorant and fearless, but drink water to know the source, and love only family.
This article is more than ten thousand, but it is worth reading. I seldom agree to make such a long article by hand, because it’s my basic etiquette to never recommend a long article that I haven’t read more than three times.
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VII
What’s the second big problem that longevity brings us? It’s called multiple diseases coexisting and dancing together. Here is a statistical survey of CMS in the United States, the health care system of the United States. They surveyed 15 major and chronic diseases that Americans often suffer from. These serious and chronic diseases include cancer, diabetes, coronary heart disease, stroke, Alzheimer’s disease, heart failure and so on. They found that when Americans are over 65 years old, 80% of them will have more than two of these 15 diseases. In Guangdong, they also investigated 160000 Cantonese people, aiming at 40 common chronic diseases. When Cantonese people are over 65 years old, they will probably 47.5% of people will also have more than two kinds of chronic diseases.
What do two sets of data show? It shows that with the extension of our life span, our opportunities to be exposed to diseases have increased. Moreover, it is not a matter of negotiation between diseases and diseases. It does not mean that you will not go if you go. Usually, it is convenient for me to go on stage before you sing. Therefore, the current design of major disease insurance also pays more and more attention to multiple claims for multiple diseases.
The third problem that longevity brings to human beings is that diseases are more likely to recur. The cancer center of Sun Yat sen University in Guangzhou has been tracking a group of postoperative patients with lung cancer for many years. They have found that the recurrence rate in the first year after lung cancer surgery is the highest, and then the recurrence rate is basically decreasing year by year, which is also in line with our common people’s cognition. Generally, we hear that we have had cancer treatment for many years, and we all You think the risk is low, right?
However, the Cancer Hospital of Sun Yat sen University found that the recurrence rate of these patients would jump significantly in the tenth year. Coincidentally, the Cancer Hospital of Fudan University in Shanghai also observed the patients after breast cancer surgery. Breast cancer is a little different. The recurrence rate in the first year is not high, the second year is the highest, and then it decreases year by year. But in the same way, the recurrence rate in the tenth year will suddenly rebound, so what do these two tracking data show?
In the past, our treatment level for lung cancer and breast cancer is not high. A large number of patients may not be there in less than 10 years after surgery, so we can not observe a large number of recurrence data after 10 years. But now, because of the high level of early detection and treatment of diseases, and the long life span of people, these diseases have a chance to attack again. So why do I choose lung cancer and breast cancer? Because lung cancer is the best cancer of Chinese men, and breast cancer is the best cancer of Chinese women, the two are the most representative.
VIII
We can see that good serious illness insurance is beginning to pay for the recurrence of the disease. Many people say that it seems that insurance is really to be bought, but the next problem is what kind of insurance to buy. I find that there are still too many ordinary people who don’t know what kind of insurance to buy first. A lot of people say that they have bought it, but if you look at it carefully, it’s all investment insurance. Some are three-year return, five-year return and even one-year return. In fact, our regulators have seen the problem for a long time.
As early as the enlarged meeting of the Party committee of the CIRC in December 2016, the famous conclusion of “insurance by family name” was clearly put forward, which is also a guiding opinion. It requires all insurance companies to return to their roots and get their business done. The guarantee mentioned by the CBRC, of course, includes personal security, disease security, pension security and so on, as well as wealth security, but it does not refer to the kind of insurance that only emphasizes short-term investment return.
When we ordinary people choose insurance, we should first look at it as an insurance rather than as an investment. The definition of insurance in front of us is goalkeeper. If the focus of insurance is investment, then it will become a striker again? Then the goalkeeper of your team will always take part in the attack in the other half. Is he still the goalkeeper? Does your insurance have the function of insurance? OK, now that we have to guarantee, what should we do? On the whole, the guarantee should be comprehensive, but it should be focused on different groups of people.
IX
Let’s take children as an example. I think the first thing children need to consider is two kinds of guarantees. The first is accident insurance and the second is serious illness insurance. I’ll tell you the truth. There are more accidents for children, which is related to their weak ability of identifying and preventing accidents, such as the car accident caused by running around on the road, the fall caused by climbing high, the foreign body swallowing caused by curiosity, and so on. Therefore, for children, accident insurance must be considered first.
In addition, we suggest that serious illness insurance should be provided shortly after the birth of the child. Let me explain first. For children, the probability of suffering from serious diseases is lower than that of adults. But once children get serious diseases, such as the most common leukemia, the cost is very high. The point is that I’ve never heard a parent say their child is ready to give up on treatment.
When I was in the hospital, I was in charge of the orthopedic beds. There were also many elderly fracture patients who had been in bed for a long time, resulting in fatal lung infection, urinary tract infection or skin infection. The skin infection was bedsore. Before he finally died, there were indeed many family members who agreed that the doctors were not doing their best to save the elderly out of the pain,
But the situation in the children’s leukemia ward is totally different. Every parent is asking the doctor to use the best medicine at all costs. Therefore, although the probability of serious illness of the children is not high, I strongly recommend that serious illness insurance must be equipped and sufficient. At that time, I will not give advice to customers of all ages. In fact, I have listed them on the courseware. When I buy them, I need to live within my income. Don’t live and suffer. If economic conditions don’t allow it, we can gradually increase insurance. There is no need to put it in place in one step.
X
In particular, I want to tell the young people who just got paid at work. In addition, the salesmen around you are also professional. They must truthfully tell them about your economic situation and insurance needs. They will make the most reasonable plan for you. If you trust them, they will sincerely serve you. As a salesman, our customers are in different situations. You also need to make the most economic and cost-effective insurance plan for them based on their income, debt, consumption habits and security.
I’m still saying that, when you make plans for customers, please keep in mind that I’m making insurance plans for my own family. So what kind of insurance should be pushed, what amount of insurance is suitable, and what guarantee must be matched, you will not be mistaken.
That is to buy goods to compare prices, but many customers equate insurance goods with general goods to compare prices, which is a mistake. Because insurance is a complex commodity, for example, the amount of insurance will affect the premium, the type of insurance will also affect the premium, the length of the payment period will also affect the premium, whether the guarantee period reaches life will also affect the premium, and whether the number of claims is once, twice or three will also affect the premium. There are many factors that affect it. The most scientific way to compare multi factor and complex products is to ensure that all factors are consistent before we compare prices. That’s what makes sense.
But it’s hard to do, right? In fact, insurance companies and regulators have actuarial positions. The design and pricing of a product must meet the requirements of regulatory documents. Otherwise, insurance companies and accountants will face the risk of administrative penalties. We’ve all heard that economics is a gold collar profession, because it’s not easy for them to get actuarial qualification. Whether it’s a Chinese actuary or a North American actuary, it’s the same.
Then you can imagine, in this case, is it possible that there is a product that is good everywhere and the premium is very cheap, or there is another product that is bad everywhere and the premium is very expensive. It’s almost impossible for most of the time. This product is better in this respect. That product is stronger in that respect. The key is to see which aspect the customer cares more about.
Here, I also want to remind our customers that there are many online non actuaries who don’t understand the essence of insurance, so they have published various articles there. They compare the products of different companies very well. In a popular word, this is serious nonsense. Moreover, this comparison does not meet the regulatory requirements. Generally speaking, there is only one final result of this comparison. The result is that the product he recommends is always the best.
Then you may ask, price is not important, so what is more important? I said that service comparison is more important. I believe you all have this experience. Sometimes we buy a more expensive thing, but because of its excellent late service, we think it is worth it more and more. However, we may have the opposite experience. When we buy a cheap product, we feel that we have made money at first, but because of the late service, we will regret it, and make up our mind that I will never buy it again It’s a bargain, isn’t it?
services, but you don’t necessarily feel that I give three examples. First, if you don’t have a professional insurance salesman to help you analyze your financial situation and your insurance needs, do you really think you can buy the right products and insurance coverage? I heard many customers ask me the first question, it’s you How much is a company policy?
It’s obvious that I don’t understand such a question. It’s hard for me to imagine a customer like this who starts the painful process of self-learning through the thorny network and can finally choose the right product and insurance. In most cases, when he sees all kinds of online statements, he gives up the idea of buying. Therefore, in the end, it is still in a state of naked running without guarantee, and professional things still need to be done by professional people;
The second example is a real case that I met a few years ago. That’s a big customer on the customer service counter who came to surrender his insurance policy. His annual premium is 200000 yuan, which has been paid for seven years. The eighth time I came to pay the premium, because the loan of my family’s enterprise was not settled, the bank was unwilling to put down the first loan. The only way the customer could think of was to return the insurance and then take the money to save the enterprise, right?
At the beginning, please don’t inform his service marketer, because I don’t think he has face. I can understand him very well. Many of our customers and our marketers. After a long time, it’s all good for the family. Now if I want to withdraw the insurance, I think I can’t wipe my face off, but I know his salesman must have a way to help him, so I secretly informed his marketing. When the salesman came here, he laughed at the situation and quickly helped him to apply for a policy loan,
First, I paid the current premium, the remaining loans were taken to pay back the enterprise loans, and then I paid back the policy loans after a new loan from the bank came down. The whole process of policy loans did not expire for a day, because the speed of turning positions was also very fast, and the interest generated by the whole policy loans was also very low. The customer later laughed himself and said that the insurance had this kind of operation. Yes, there are many insurance operations. As long as there are our salesmen, they will always give you the most professional service, but you can’t do it by yourself.
The third case is my own mother’s. One day in September last year, my mother’s right ear suddenly went completely deaf. I took her to see a doctor and be hospitalized immediately. The next day, I went to the hospital to look up her case. Later, I found that in the past part of her inpatient medical record, I wrote that my mother had high blood pressure, diabetes and stroke. I went to ask her, I said Mom, you have high blood pressure, I know, but when did you have diabetes and stroke,
My mother told me that yesterday when the little doctor came to ask about the medical history, he reported a series of disease names and asked me if I had any. At that time, I thought that I had high blood pressure, so he said that I had some, and then the whole medical history became like this. Then I suddenly turned to think that some of our customers, because the past history was refused compensation, would there be such a situation, but if a good service camp Salesman, when he submits the claim, he will help you to have a general look at the medical history. If there is no problem, submit it. If there is a problem, you can go to the hospital in time to modify it. Does this need professional services? In fact, there are many similar services.
XI
Then how to determine the amount of insurance reasonably? Here are three simple methods. The first is called the value method, which is to determine the insured amount according to a person’s surplus economic value. Note that I don’t say it’s the value of a person. A person is priceless. It can’t be measured. What we say is the surplus economic value, which means how much economic wealth a person can bring to his family in the future.
Take myself for example. I am 47 this year. If I can work until I am 60 years old, then my remaining years of work are 13 years. If I expect my average annual salary to be 200000 in the next 13 years, then my own expenses will be 100000 every year. Therefore, my remaining economic value is 100000 every year. Then I multiply 100000 by my remaining years of work for 13 years, that is 1.3 million. So for my family, the remaining economic value is 1.3 million yuan. If I die in advance, my family will lose 1.3 million yuan. Then my death guarantee can be set as 1.3 million yuan. Of course, this is just a very rough algorithm to let you understand what is the residual economic value. Everyone can adjust according to his own special circumstances;
The second method is called demand method. It means you don’t care how much money I can earn. You need to see how much money I or my family will need in the future. For example, if I have a serious illness, I’m expected to lose my ability to work for five years. At the same time, I’m not able to pay back the remaining 500000 yuan of housing loans. So I’m going to determine my coverage of serious illness insurance as my five-year income, which is one million yuan in total, plus 500000 yuan of housing loan surplus, so it’s 1.5 million yuan in total.
The third method is called ability method. Ability method is to use your ability to pay, and then check whether the amount of insurance you come out above is reasonable? In general, we do not advocate that you use more than 10% of your family’s annual income to buy insurance. If you do, please reduce your coverage or change to a cheaper type of insurance.
The above three methods provide three ideas: value method, which is more scientific and rigorous, so I will buy as much as I value; demand method, which is more willful and subjective. I will buy as much as I need; as for ability method, I will buy as much as I can afford. Each has its own advantages and disadvantages. Please consult with your professional marketer.
XII
Speaking of this, I suddenly want to ask you a question: do you really want to pay for insurance after paying? Have you ever thought that if you buy insurance, it can also help you avoid risks, or even if you can’t avoid risks, but after you buy this insurance, you will have more opportunities to recover from health than other people, rather than just lying in bed and counting money.
Do you like this kind of insurance? I’m not really joking. The new insurance industry is moving in this direction. We want to encourage you to exercise, provide you with healthy information, help you develop good health habits, and strive to reduce your chances of illness and prolong your life. Is this to help you avoid risks?
For this reason, we have launched products like health friendly. In addition, in case of illness, we will provide you with better medical resources through qualified institutions, which is not to get more rehabilitation opportunities for you. For this reason, we have launched a series of overseas medical services, micro medical services, and more leisurely services. We hope that in the future, we can comprehensively respond to your needs, not only the needs of funds, but also the needs of prevention, as well as the needs of rehabilitation. This is our overall health solution. We call it PPR. If you are interested, you can consult your marketing staff.
XIII
Finally, I have to sell a little bit of anxiety. The earlier the insurance is, the better. From the perspective of risk management, the older the age is, the higher the risk is, but the premium rise is only one aspect, the most afraid is that once the risk happens unexpectedly, the premium will not be paid in.
I often meet marketers in wechat asking, my customer has this disease, can you protect it, my customer has that disease, can you buy it? I said, why do your customers have to wait until they are not healthy to buy insurance? The answer they gave me is, there is no way, who would want to buy insurance when they are healthy? In fact, this sentence is very unprofessional, but very grounded. In fact, this is the case, so I still want to remind our customers that the insurance awareness and insurance literacy of the Chinese people really need to be improved. Streaking is very dangerous.
From the economic point of view, small investment for a big guarantee, this kind of leverage is the most economic behavior. From the perspective of life experience, people who do not buy insurance in order to save money. Did you really save money by the end of the year? Usually it’s money or don’t know where to go.
Everyone’s responsibility is very heavy. Why not let the insurance company share a part of it for you and try to make your future more certain? Well, after all that, thank you very much for listening to my online lecture in your busy schedule. I’m very glad to have a little help for you.
