What is the Difference Between Critical Illness Insurance and Terminal Illness insurance?

Critical Illness Insurance is very comprehensive, a lot more so than Terminal Illness cover.

1 in 5 men and 1 in 6 women can expect to suffer a critical illness before their standard retirement age.

People can only claim under Terminal Illness cover if they are diagnosed with an illness from which a Doctor expects them to die within 12 months of diagnosis. Terminal Illness Insurance is not available to buy as a stand-alone policy - it is always together with another policy.

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

If you suffer a heart attack or became blind, you may live for years afterwards, blindness does not usually affect life expectancy for example. So, whilst you have to give up work, you wouldn't be able to make a claim under your Life and Terminal Illness cover because you will live for over 12 months. Critical illness insurance fills this gap, paying out immediately if you are diagnosed with any one of a detailed list of critical illness included on the insurance company's policy.

Here is the definition of when you can make a claim on your critical illness insurance:

• if you are diagnosed as suffering from a serious or chronic illness,
• or terminal illness which is included on your policy,
• or require a particular type of operation which is included on your policy
• or you are diagnosed with a condition or have an accident that totally and permanently stops you from working.

We hope you will now understand the differences between Critical and Terminal Illness Insurance.