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
 

Hot Topics

Should you have a “Guaranteed” or a “Reviewable” policy?
When a policy is first started Guaranteed policies have higher premiums than Reviewable policies - but in the longer period Reviewable policies generally work out more expensive.
How much does the critical illness cover cost?
The cost of a Critical Illness policy depends on the amount of cover you need, your personal details (especially your health and age) and the optional extras you select.
How will a critical illness claim be paid?
If you have a claim a Critical illness policy pays you a tax-free lump sum normally by cheque. Then, as soon as you receive the payment. the policy will terminate.
Are You Allowed To Continue Working After A Critical Illness Claim?
Once an Insurance company has paid your claim it has no interest how you live your life or what you go on to do.
Can you extend or increase your Critical Illness cover at a later date?
If you have a policy with a renewable option then yes, you can increase, or sometimes extend, your cover. If you do not have a renewable option then you cannot change your cover. These days only a few insurance companies offer policies with a renewable option.
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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