Is life insurance the same as critical illness insurance ?
Thursday, October 9th, 2008Life insurance and critical illness insurance are very different products. However they can be amalgamated into one comprensive policy that will give total peace of mind.
Life insurance is where an income or a fixed benefit will be paid out if the person covered in the policy dies within the policy term. With this type of policy you also normally get terminal illness insurance included, this is often confused with critical illness insurance but is very different. Terminal illness is when the policy will pay our prior to death if the policy holder is diagnosed with a terminal illness. This allows them chance to sort out any affairs prior to them passing away.
Critical illness is very different this is where a lump sum or an income will be paid out if the policy holder suffers from one of the specified critical illnesses set out in the policy documentation from the outset. There is a much higher chance of suffering from a critical illness opposed to dying thus much more chance of making a claim on this type of policy and critical illness insurance is normally much more expensive than life insurance.