Terminal Illness Cover is not the same as Critical Illness Cover

Many people with life insurance which includes Terminal Illness Cover think that is is the same as Critical Illness Cover but it isn’t.

The biggest difference is:

Terminal Illness – an illness from which you will die in the next 12 months.

Critical Illness – an illness which you could recover from and even return to a normal life.

Terminal Illness is usually included as standard with Life Insurance policies and it will pay the claim to the policyholder if they are diagnosed with a condition that they are very likely going to die from in the next 12 months. This allows the policyholder to take care of their own personal affairs or spend the money however they want.

The life insurance company will assess the medical information relating to the illness and their doctors will decide if a Terminal Illness claim is payable.

A terminal illness claim will be paid regardless of the life threatening condition (provided the insurance company knew all the facts when the policy was taken out).

Critical Illness Cover is not automatically included with life insurance. It is an additional extra which costs extra.

Critical Illness cover offers protection against a set number of illnesses and not every insurance company is the same.

Some critical illness providers offer cover for 35 illnesses, some for 40 and one covers up to 161 conditions.

For a list of some of the most common conditions that are covered visit out Critical Illness page.

Due to the tax structure of life insurance and critical illness cover it is actually cheaper to have the two combined into one policy instead of having critical illness cover on its own.

For a life insurance or critical illness quote please select the ‘Quote’ tab above and then select ‘Life Insurance Quote‘.