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Catherine Joesph

Critical illness life insurance is a type of life insurance where the policy holder receives a lump sum cash payment if diagnosed with a critical illness. The critical illness diagnosed must be available in the list of critical illnesses covered by the insurance company for payment to be made and the policy holder must survive the policy’s “Survival Period”, which starts from the date the illness was first diagnosed, in order to receive the payment. The “Survival Period” is usually 28 days or 30 days but there are companies which have adopted a 14 day survival period.

The list of covered critical illnesses varies between insurance companies, so it is important to know what illnesses are covered by the insurance company before taking out the critical illness life insurance policy. Insurance companies providing critical illness life insurance insist that the diagnosis of the critical illness be made by a physician who specializes in that illness or condition.

Terminal illness life insurance pays out a capital sum if the policyholder is diagnosed with a terminal illness from which the policyholder is expected to die within 12 months of diagnosis. This diagnosis must be made by a physician who specializes in that illness or condition. A terminal illness life insurance policyholder has the benefit of receiving both the life insurance policy and terminal illness payments, in the event of being diagnosed by the terminal illness from which he/she is expected to die within twelve months of diagnosis.

It is important not to confuse terminal illness life insurance with critical illness life insurance as the features of both these insurances are very different.

Catherine Joesph – critical illness life insurance and terminal illness life insurance