Does Critical Illness Have Cash Value?

Shawn Plummer

CEO, The Annuity Expert

Does Critical Illness Have Cash Value?

Critical illness insurance typically does not have a cash value component. It is designed to provide a lump sum benefit if the insured is diagnosed with a covered critical illness.

This benefit is specifically for the purpose outlined in the policy, such as covering medical expenses, lost income, or other financial needs associated with the illness.

Unlike some life insurance policies, critical illness insurance doesn’t accumulate cash value over time and is solely focused on providing financial support in the event of a qualifying critical illness.

If you’re looking to accumulate cash value, get a free whole life insurance quote

Key Features of Critical Illness Insurance

  1. Lump Sum Benefit: Pays a one-time, pre-determined benefit upon diagnosis of a covered illness.
  2. Specific Coverage: Only applicable for the illnesses listed in the policy.
  3. No Cash Value: Unlike whole life insurance, it does not accrue any cash value.
  4. Use of Funds: The benefit can be used at the policyholder’s discretion for various expenses.
  5. Policy Duration: It may be a term or lifelong policy, depending on the agreement.


For instance, if someone has a critical illness policy with a $50,000 benefit and is diagnosed with a covered illness like cancer, they would receive the $50,000. This money can be used for treatment costs, living expenses, or any other financial needs during that time.


Critical illness insurance provides financial support specifically for the challenging times following a critical illness diagnosis. It offers peace of mind but does not function as an investment or savings tool. For more personalized information or to explore critical illness insurance options that best suit your needs, contact us today for a free quote.

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top