What is the difference between Critical Illness cover and Terminal Illness cover?

Critical Illness Insurance is much more comprehensive than Terminal Illness cover.
1 in 5 men and 1 in 6 women suffer a critical illness before their usual retirement age.

STEP 1 of 2
Type of cover
Life Insurance       Mortgage Life Insurance
 
Cover Level (£)

Number of years
Do you want:  
Critical illness cover
Family income benefit
 

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Is there a minimum or maximum amount of Critical Illness cover available?
When you get an quotation, the insurer providing the quotation has agreed in principle to insure you for the sum you have requested. Therefore, you do not need to worry about this issue.
What decisions will you have to make before you can get a quotation?
You will have to make four decisions:
Why, when you only want Critical Illness cover, should you consider combining it with Life Insurance?
Two good reasons: You are likely to save money! And if you died within the survival period (see below), the claim would still be paid under the terms of your Life Insurance.
Is there a minimum or maximum premium for critical illness cover?
Minimum premiums vary from company to company but they can be as little as £5 per month.
What information will be needed at the time of a Critical Illness claim?
For a Critical Illness claim to be successful the insurance company’s claims department will need evidence that you have been diagnosed as having one of the listed critical illnesses. This evidence will normally come from a Hospital Consultant who is a specialist in the illness which has been diagnosed.
You can claim under Terminal Illness cover if you are diagnosed with an illness from which a Doctor confirms that you are expected to die within 12 months of diagnosis. Terminal Illness Insurance cannot be purchased as a stand-alone policy - it is always sold in combination with another policy.

Terminal Illness cover is normally included free of charge within all Life and Critical Illness policies.

But please be aware, Terminal Illness and Critical Illness cover are not the same.
Critical Illness cover is much more comprehensive.

Consider what would happen, if you had a heart attack or became blind. Many heart attack victims can expect to survive for years and blindness does not usually affect life expectancy. So, whilst you have to give up work, you cannot claim under your Life and Terminal Illness cover because you are expected to survive longer than 12 months. Critical illness insurance fills this gap. It pays out immediately if you are diagnosed with any one of a long list of critical illness included on the insurance company’s list of insured illnesses and conditions.

Critical illness cover is defined as an insurance which pays you a tax-free sum of money if

  • you are diagnosed as having a serious or chronic illness,
  • or terminal illness which is listed on your policy,
  • or require a specific type of operation which is listed on your policy
  • or you suffer from any condition or have an accident that totally and permanently prevents you from working.

Now consider the fact that 1 in 5 men and 1 in 6 women suffer a critical illness before their usual retirement age.

We hope you will now appreciate the advantages of Critical Illness Insurance and the difference between Critical and Terminal Illness Insurance.

Frequently Asked Questions related to the above topic.
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