Pilot projects have been launched in 2012 across the country to try to establish critical illness insurance for urban and rural residents. As an extension of basic medical security system，critical illness insurance has improved people’s medical security level and prevented people who suffer from serious illness from being poor for disease. The critical illness insurance has achieved periodical success and become the focus of the world. In addition，through government purchasing，it creatively delivers a part of basic medical insurance fund to commercial insurance company for operating，which improves the fund’s management ability and efficiency. The critical illness insurance becomes an important part of the medical security system of socialism with Chinese characteristics and initiate a new way for Chinese health care reform. In 2015，China fully implemented critical illness insurance all around the country. In the future，it will further upgrade pool level，improve financing mechanism，increase security level and improve medical insurance handling management.