There are a number of key differences between life insurance and critical illness insurance.
For some people it may be suitable to have one type of insurance and for others it may be beneficial to have both.
The key characteristic of life insurance is that it only pays out on the death of the policy holder.
There is no other reason that any money will be paid out on this type of policy. Some policies have some provision for terminal illness payout before death, but in this case death must occur within 12 months of diagnosis, so are still linked to the death of the policy holder.
Policies of this type provide a sum which could pay off a mortgage or provide a cushion for the loss of income for the surviving family.
The difference with Critical illness insurance is that it provides for individuals and families while they are still alive.
The aim of such a policy is to provide a tax free lump sum which will give financial support in the event that you are diagnosed a severe chronic illness, or sustain a severely disabling injury.
The amount can used in any way to provide support, including adapting the home, or paying for home nursing care. Some policies also have a provision for children.
This means that if a child becomes unwell and a parent stays at home to care for them, there is the financial resource to do so.
For adults, statistically around 1 in 4 people will sustain some form of critical illness between the usual employment ages of 30 – 60. For those with mortgages and children, having critical illness cover could potentially be very beneficial.
In combination with life cover, it is one of the best ways to ensure that whatever happens, you and your family will be provided for. At https://www.endsleigh.co.uk/ you can tailor a policy to meet your requirements so that you can have the peace of mind needed to get on with your life.