When comparing life insurance and critical illness coverage, it is important to understand what each policy does for you and your family to decide if you need both, which is likely.
Life insurance is generally a policy in which the policyholder and the insurer determine a term period, usually from 10-30 years, during which the policyholder pays monthly premiums to ensure themselves and their families security in the event of death. These premiums are decided based on the customer’s medical history, current health, and income. Whole life insurance works the same way, except instead of a term-period the insurance simply lasts until the death of the policyholder. When a death occurs, the listed beneficiaries receive a lump-sum of money to cover any expenses that arise pops-death. These could include funeral costs, childcare, medical bills, etc. The money is for general use by the family
CRITICAL ILLNESS COVERAGE
On the other hand, critical illness coverage is an add-on policy to basic life insurance in which the policyholder pays extra on their monthly premium to ensure that if they are diagnosed with an illness covered by the particular policy you choose. Illnesses typically covered by critical illness insurance include heart attack, stroke, and cancer but you will want to check with your policy to ensure it has what you need.
The biggest reason to add critical illness coverage to your plan is that life insurance only pays out when you die. Critical illness coverage will pay out benefits when you have medical bills during your illness. Once you make a claim, it can take from a week to three weeks to approve. This also prevents your family from having to grieve and worry about financial bills at the same time. This money could potentially be life-saving, meaning it is better to be over-prepared than unprepared.
We would recommend you to talk to one of our advisers for life insurance quotes.
Any quote that your adviser provides you with will take into account your circumstances, your medical history, as well as your budget!
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