What is difference between Critical Illness Cover and Terminal Illness Cover
Insurance is changing the way we live and work. It plays a key role in shaping the life of people. To begin with, having a plan is crucial. There are many categories in which insurance lies, one of the most essential could be health insurance. And to be more specific, critical illness cover.
One of the most important points to understand is shop well and make sure you understand the difference between terminal insurance and critical illness cover. According to certain statistics one out of every 6 women will suffer from critical illness and one out of every 5 men will undergo a critical illness before he retires. This statistics clearly reveal the fact that obtaining critical illness cover has become important. After all, you can’t afford to miss out on cover who gets you good returns, do you?
Difference between Critical Illness Cover and Terminal Illness Cover
Let’s start with the terminology
Terminal Illness Cover-Terminal Illness Cover pays out if you are diagnosed with terminal illness and your doctor expects you to die within 12 months. Majority of the life insurance policies will cover your terminal illness.
Critical Illness Cover- It is a comprehensive plan that covers 30 diseases. A policyholder will be paid if he is diagnosed with critical illness. The illness is not limited to stroke, heart attack, cancer, etc; therefore insurance companies offer comprehensive coverage to the policyholder. It is recommended to pay additional charges; since you are out of work or you may be suffering from the chronic illness, in all such cases critical illness cover will provide you financial security.
Type of Diseases covered
Your critical illness cover will cover blindness and other diseases whilst your terminal illness cover won’t cover the same. If you are facing critical conditions like heart attack, massive stroke your critical illness cover will pay you a tax free Lumpsum amount to help you with your daily paraphernalia expenses.
Pays Out
A critical illness cover will pay out only if you are diagonosed with critical illness as mentioned in the booklet.
Also, your critical illness policy often provides coverage if your prognoses are suffering from any of the above mentioned disease. The policy covers permanent loss of a job due to prolonged illness, disability, Parkinson disease deafness, Alzheimer’s, Bacterial Meningitis, Niles Disease, and so forth.
Included
Terminal Illness cover is generally included in your life insurance policy without any additional cost depending upon the prevailing conditions.
Critical Illness cover is not covered under the life insurance policy rather you need to take a separate cover for it
Standalone Policy
Critical Illness cover is a standalone policy that provides you a host of benefits, while terminal illness cover can only be purchased in the combination of other health policy.
Loss of Income
As said earlier, critical illness cover provides you coverage, if you are unable to work for prolonged periods of time. It basically acts like a pipeline in case of emergencies or unfavorable situations.
Terminal illness insurance won’t provide you protection because you are expected to live for more than a year.
CIC will pay you tax free amount if and only if
- The policy holder is diagnosed with serious illness
- You require a serious medical surgery that is listed in the booklet of the policy
- You have suffered from prolonged illness or serious accident
In all such cases, your insurer is liable to pay you.
What factors to consider before buying a policy
Hopefully, after reading this you may be able to decide, which insurance cover is the best one for you. Once you decide, the next step is to apply for life insurance. Following factors affect your policy coverage
- Age
- Health
- Workplace
- Lifestyle
- Hereditary diseases, if any
- Smoking status, etc.
The companies perceive that your health is in good condition and you are in high spirits. Therefore, you need to disclose truthful details to the insurer. Do ask for critical illness coverage, since it has a lot of merits.
It is wise to add life insurance with critical insurance because none can predict the future. The key to success is searching for a right bargain. Most insurance companies work on the same line of thought. If you come under the category of rated premiums, most likely you won’t get cheap insurance anywhere in the world. The term rated insurance encompasses the high risk category individuals like all those people who have hereditary illness, smokers, job risk, lifestyle borne disease, etc.
From where to take cover
Once you have purchased critical illness or terminal illness cover, the next step is obtaining a cover. You can obtain critical illness quotes through financial advisor or from insurance companies on online bases. Before obtaining critical illness quotes, you need to research first. This will provide you insight which insurance cover is suitable for you.
Nonetheless, think ahead and try to obtain critical illness quotes today itself. More often than not, people feel they are not financially secure. Thus, instead of communicating this with their financial advisors, they quietly resign from life. Instead, it is vital to set right goals at the beginning.
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