What is the difference between Terminal and Critical Illness Cover?

Whilst it is easily confused by some, Terminal Illness and Critical Illness cover are very different. Before you arrange insurance you should understand the differences.

Terminal illness cover pays when the policyholder is diagnosed as having an illness which is likely to cause death in the near future. The ‘near future’ can vary but it’s usually either six or twelve months. Many life insurance policies include terminal illness cover for no additional charge.

Once a terminal illness claim has been paid by your insurer, no further claims can be made. The policy then comes to an end. If you survive past the life expectancy diagnosed then you will not be expected to pay back any of the money.

Critical illness cover (CI) is designed to pay out when you experience 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, and for this reason it is often relatively expensive to include and not included as standard on all policies.

If illness, such as cancer, stroke or heart attack, means we are no longer able to work, or we need adaptations to our home or more care, having CI cover can be very reassuring.

Whether you need Critical Illness or Terminal Illness cover is something you need to decide, but knowing that such cover exists is reassuring for those of us with families and loved ones that are dependent on us and our income.

For more information, speak to our insurance specialists on 01628 507477.

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