What Is The Difference Between Life Insurance And Critical Illness Cover?

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2 responses to “What Is The Difference Between Life Insurance And Critical Illness Cover?”

1. 

   April 19, 2014

   James Elbaum

   Life insurance pays a lump sum to a beneficiary upon the death of the insured.  A critical illness policy pays the insured upon the diagnosis of a critical illness.  Although different in nature critical illness policies are often written on a life insurance chassis allowing the money to be paid out upon the diagnosis of a covered critical illness and if the insured dies from the critical illness it will pay the benefit, or some portion of, to an assigned beneficiary.
2. 

   August 30, 2013

   Brandon Roberts

   Life insurance covers against the loss incurred upon the death of an individual.  Dying is the triggering event that makes the insurer pay a claim.

   Critical illness insurance covers against the loss incurred by a major medical condition like stroke, heart attack, or cancer.  The triggering event is the illness.  The insurer pays a claim to help cover the costs associated with the illness.