Can Critical Illness Insurance Cover Pre-Existing Conditions?
Question asked by Paul James
What’s the difference between critical illness and terminal illness? I’m looking at protecting my family should I become too ill to work so they have enough to get by and pay off any mortgage and bills.
It is easy to get confused between ‘critical’ and ‘terminal’ illness cover, but it’s imperative to understand how to differentiate between them when looking into various policies.
Critical Illness Cover is a policy that pays a lump sum if you were to be diagnosed with one of the listened illnesses covered on the policy.
It’s usually bolted on to a Life Insurance policy, which pays out on death.
This sum is usually used to pay for private medical care and to make home adjustments if a critical illness has been suffered, or to pay off the remaining balance of a mortgage.
Terminal Illness Insurance is usually included in most Life Insurance policies as standard.
It’s designed to pay out the sum assured on your Life Insurance policy if you have been diagnosed with an illness where a specialist has given you a life expectancy of less than 12 months.
Given this, the difference between terminal illness and critical illness is fundamental as you are far more likely to suffer a critical illness that is not necessarily terminal.
For example, a stroke could leave you incapable of working ever again but this wouldn’t invoke a terminal illness payout unless the consultant thought you would pass away within 12 months.
Furthermore, critical illness plans also cover some serious physical disabilities, such as the loss of limbs or eyesight, which are by no means terminal.
Feel free to pop us a call on 02084327333 to run through with an adviser if you would like to find out more about the difference between these two types of insurance.