Terminal Illness Insurance V/S Critical Illness Insurance

By: Mike Armstrong
Submitted: 2008-06-26 22:50:24
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If you know the difference between Terminal and Critical illness insurance, you might save some time in choosing the right insurance for you. Critical illness cover may provide you with a more advantageous policy than terminal illness policy. More precisely, you may end up having more benefits with critical illness policy for your money contributed than terminal illness policy. Statistics may reveal that 1 out of 5 men may suffer from a critical illness before reaching the age of 65. On the other hand, 1 out of 6 women may also endure the same fate.

Moreover, critical illness conditions continue beyond heart attack, stroke and cancer. Therefore, many insurance companies may now provide people with extended critical illness covers. The extended critical illness cover may vary from one company to another. But we will now have a look at terminal illness related critical illness insurance.

Almost all companies provide cover for both types of policies. However, people willing to have an extended critical illness cover may have to ask for a separate quote from their insurers. But the majority of insurance companies may add terminal illness as an extended coverage at no extra cost. Critical illness policies may be considered as comprehensive policies. The reason behind could be that critical illness policies may cover up to 20 critical illnesses. So, it could towards your advantage to get such a critical illness plan even if the price tag is high. This might become helpful to you especially at the time when you suffer from a critical illness. At that time, you could ensure a degree of financial security.

Nowadays, critical illness policies may provide cover for blindness in contrast to terminal illness policies. Should you become blind after accident or contract heart attack, your critical illness insurance may provide you with a tax free lump sum. This could help you settle your existing debts, assure living expenses as well as coping with medical treatment charges. The payout may also act as a replacement for your loss income if you are unable to attend work. Here are some of the diseases that your critical illness may cover you against: severe burns, Parkinson’s disease, motor neuron disease, ongoing disability, HIV/AIDS resulting from non sexual activity, cancer, heart attack, deafness, and kidney failure among others. Some critical illness policies award coverage against diseases such as Alzheimer’s, Bacterial Meningitis, Niles Disease, etc.

Furthermore, when you make an application for critical illness cover, the insurers may take certain factor in consideration. These may be described as workplace, health, age, whether you smoke or not among others. Sometimes insurers may take for granted everything you tell them at the time of application. So, it could be against your own advantage if you do not provide a complete disclosure to everything asked to you. Also, many people may seek for a combined critical illness policy. For example, critical illness insurance with life insurance. Should you suffer from a critical illness in the future, the policy may award you a payout with the policy still remaining in force. Thus, your dependants may continue to be secured for a much future time due to the life insurance.

Premium payments may also increase according to the risk factors associated with a particular critical illness. For example if you smoke, your chances of contracting lung cancer may increase. Therefore, your premium payments may also take an ascending trend. But considering your life and your family, it may be well worth taking out critical illness cover.

Article source: Expert Articles