Does Critical Illness Cover Death?
Critical illness cover does not include death benefits. It is specifically designed to provide financial support if you are diagnosed with a critical illness listed in the policy, but it does not pay out upon death. Death benefits are typically associated with life insurance policies, not critical illness cover.
Key Differences Between Critical Illness Cover and Life Insurance
- Critical Illness Cover: Provides a lump sum payment if you are diagnosed with a critical illness.
- Life Insurance: Pays a death benefit to your beneficiaries upon your death.
- Critical Illness Cover: Only covers specific illnesses listed in the policy.
- Life Insurance: Covers death from any cause (subject to policy terms).
- Critical Illness Cover: The payout is made directly to you, the policyholder.
- Life Insurance: The payout is made to the beneficiaries you have named.
- Use of Funds:
- Critical Illness Cover: Often used to cover medical expenses, lost income, or other financial needs related to the illness.
- Life Insurance: Beneficiaries can use the death benefit for any purpose.
While critical illness cover offers financial support during a serious health condition, it does not provide a death benefit. For coverage in the event of death, you would need to consider a life insurance policy. Both types of insurance serve distinct purposes and can be important parts of a comprehensive financial plan. Contact us today for a free quote.
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