What’s the difference between terminal and critical cover?
Although often confused, critical illness and terminal illness cover are two very different things. If you’re planning to take out life insurance, understanding the differences between these two types of cover is essential to ensure you choose a policy that matches your unique needs.
To understand the differences between terminal and critical illness cover, here are some easy to understand explanations for you:
- Terminal illness cover pays out only when the policyholder is diagnosed by a qualified doctor as having an illness which is likely to cause death in the near future
- The exact term of ‘near future’ can vary from provider to provider, but is usually a period of either 6 or 12 months
- The majority of life insurance policies include terminal illness cover at no extra charge
- The benefit of terminal illness cover is that you and your dependents can benefit from the money locked into your policy before you die
- This can help pay for treatment, loss of your earnings, even a last minute family holiday so you can enjoy this precious time
- Once a terminal illness claim has been paid by your insurer, no further claims can be made
- At this point you stop paying your premiums and the policy ends
- If you survive past the life expectancy, as stated by your doctor, you will not be expected to pay back any of your money.
- Critical illness cover is designed to pay out when you suffer a life changing illness, but one which is not likely to result in death
- This type of cover will pay out for much more common illnesses, such as heart attacks and strokes
- It is often relatively expensive to include critical illness on standard insurance policies
- Illnesses covered by this type of insurance vary from one provider to the next, but usually cover conditions like cancer, stroke, neurological disease and heart attack
- The above four illnesses account for approximately 90% of the critical illness claims made in the UK
- This type of cover can ensure your loved ones are protected if you are no longer able to work/earn, need adaptations to our home, or require a carer.
Now that you know the fundamental differences between these two add on policy elements, you should be able to make a more informed decision about whether you need them or not.
Remember, if you are a smoker then you are at greater risk to a wide range of critical, sometimes terminal conditions, such as lung cancer, mouth cancer, a stroke, heart attack and coronary heart disease.
Talk to our Reassured consultants on 0808 168 2025 to see how much these policy elements might add to your monthly premium. Then challenge us to make sure you are getting the most competitive quotes possible. Alternatively Start Your Quote online today – it only takes 2 minutes.