Terminal Illness cover provides for a Life Insurance policy to pay out early if the policy-holder is likely to die within 12 months.
Critical Illness cover is designed to make a payment if the policyholder suffers from a condition covered by the policy. For example, Heart Attack, Cancer or Stroke…
People often tell us they have Critical Illness cover, when in fact their cover is limited to Terminal Illness cover. From the perspective of the policyholder, it’s an easy mistake to make. However…
There’s a huge difference in terms of the value of these benefits, hence this article explaining Terminal Illness vs Critical Illness.
For example: We recently helped a customer with a Critical Illness claim, following a Heart Attack. The policy repaid their mortgage, even though they were fit and well enough to return to work within 6 weeks. A Terminal Illness benefit would not have been payable, unless the Heart Attack had been so severe death was likely within the year.
In summary:
If you would need to claim on diagnosis of a potentially critical illness, you should consider Critical Illness cover. You could still live to be 100, but your income, lifestyle and ability to work could be severely disrupted in the medium/long term.
Terminal Illness cover is usually provided as standard with Life Insurance policies, whereas Critical Illness cover can be a meaningful, but usually affordable expense.
Any questions about Terminal Illness vs Critical Illness?
If you would like to know more, call us on 01287 650300 for an informal chat.
Note:
Click here to see what Citizens Advice says about Critical Illness cover.
Click here to see what Wikipedia says about Terminal Illness.
