This research shows an overall decreasing effect on saving after the introduction of Serious Sickness Insurance (SSI) with a China survey dataset. I build a three-period model showing that SSI can influence saving via two driving forces: reducing precautionary savings for medical expenditures; increasing saving for a longer life expectancy. I employ staggered difference-in-difference estimators to show that the empirical results agree with the prediction of the model. Both the decrease in medication expenditure and longer life expectancy increase the utility of the insured. The effects are different across wealth, household registration type, and age groups. The actual most beneficial group is the wealthiest quantile, which is different from the initial goal when setting the policy.