Critical Illness Insurance

If an accident or a person's health deteriorates so that they are unable to work then a severe financial burden can arise.

Critical illness insurance cover is offered as an extra option to a term policy. The term policy will pay out on death but with critical illness a lump sum can be paid not only on death but when a critical illness is first diagnosed.

Critical illness definitions need to be looked at closely as different providers cover different situations but most major illnesses such as heart attack, stroke, cancer, blindness and total permanent disability are covered.

It is possible for a policy to pay out on diagnosis of a terminal illness where a person may have a life expectancy of less than 12 months because of an illness so the policy funds can be used to provide (to extent possible under these circumstances) a better financial environment prior to death. This provision is not to be confused with a critical illness option.