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Critical Illness VS Terminal Illness Plans. What’s the Difference?

  12/20/22 11:40 AM

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  12/20/22 11:40 AM   |

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The recent pandemic has left an impact on both living and the deceased families. And being prepared for any medical illness is extremely important in today’s scenario. Covering the cost of these illness is of prime importance.

Whether it is marketing over television, radio or billboards, or pop-ups over the internet, insurers are increasingly trying to contribute to financial literacy. This will help you as a user with all the necessary information to make the right financial decisions. When it comes to insurance, not one size fits all. While the basic premise of life insurance is protecting the financial interests of your family post your death, there are many variants. Critical Illness Health Insurance and Terminal Illness Insurance are two of them, and contrary to the general understanding, they’re not the same.

Critical Illness Cover vs. Terminal Illness Treatment Cover

To put it simply, critical illness is an illness that is serious but can be cured through intensive medical treatment. Whereas a terminal illness is one in which the illness is quite grave, and no further treatment can be done to cure it.

How Does Critical Illness Health Insurance Work?

When a critical illness cover is added to an existing insurance plan, it works out in the following manner.

  • If you are unfortunately diagnosed with any of the critical illnesses specified in the policy term, the insurer pays a lump sum immediately, irrespective of the your life expectancy.
  • The illnesses which are generally covered by a critical illness cover are cancer, heart diseases, head injuries, total or permanent disabilities, etc. You  need not show any proof of hospitalization to avail the claim.
  • A critical illness insurance policy cover is ideal for those people who are concerned that they won't be able to cover their financial obligations or maintain a healthy standard of living if they are diagnosed with a critical illness.

How does a Terminal illness cover differ from Critical Illness Health Insurance?

  • A terminal illness cover is concerned with paying you the insurance money, if you are diagnosed with a serious illness, and the life expectancy is less than 12 months.
  • When a terminal illness cover is included in a life insurance policy, you will know that you will be financially well provided for.
  • A terminal illness treatment cover is suitable for you if you are more concerned with putting your finances in order before your unfortunate demise and want to speed up the payout process. Most insurance plans already include a terminal illness cover at no extra cost.

Therefore, if you are considering buying an insurance plan or wanting to review your existing insurance policy, you must understand the difference between a critical illness policy cover and a terminal illness cover. Both these options can provide you with valuable benefits at different stages of life; it is up to you to choose which cover would be ideal for you to achieve your financial goals. You can also buy the critical illness cover online as per your convenience.


Siddhant Dubey - Writer & Photographer

Siddhant works as a freelance content writer who is interested in a wide range of spheres from photography and personal finance to cooking. He is also an aspiring photographer striving to showcase life around him through his vision.

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