Getting te Correct Insurance to Cover Any Illness

Many are confused by the difference between terminal illness and critical illness cover. Terminal illness cover is often included with a life-insurance policy, and is an additional payment clause that lets you receive money upon a diagnosis of a terminal illness from which you are going to die from in the next twelve months. Once the payment claim is paid out, you may spend the money however you want. It is the doctors who decide if a terminal illness payment is applicable. As long as the insurance company knew all details about you like age and any medical conditions when you originally took out the life-insurance plan the terminal illness cover should apply to any type of terminal illness. As long as premium payments are all paid and up to date, a pay-out is very likely.

How Critical Illness Cover Differs from Terminal Illness Cover

Critical illness cover does not come as part of a plan and applicants have to pay extra for it. Each insurance company have quite different rules on critical illness cover, so make sure you know exactly what cover you are taking out before you do so. There are up to 161 conditions that may apply to critical illness cover, but some firms only cover for 35 or 40 illnesses. A life insurance policy combined with a critical illness cover is often cheaper than taking out just critical illness cover on its own. When a critical illness is diagnosed that is covered by the policy, the policy holder will be paid a lump sum or regular income. Some examples of applicable critical illnesses include cancer apart from less advanced cases, major organ transplant, motor neuron disease before a set age with permanent symptoms, Multiple Sclerosis or a heart attack which is severe.

Other Features to Consider of Critical and Terminal Illness Cover

Some insurance companies will have different rules on their terminal illness cover. For example, it may not cover the last 18 months of a policy or be available on plans that last less than two years. Once an application for a terminal illness has been made and been successful that will signal the end of the policy and no more payments will be released. Usually if you survive with a terminal illness for a term of 12 months or the term specified you will still get to keep the money paid out but no further payments will be made and the policy will be considered to have ended. Suffering from a critical illness before the age of retirement is much more common than suffering from a terminal illness. In fact, 1in 5 men will suffer and 1 in 6 women will suffer from this type of illness at this time. Critical illness cover is therefore much more comprehensive than terminal illness cover. It will pay out immediately on a diagnosis of a critical illness, unlike terminal illness cover which will only be paid out if you are 
expected to die before the end of twelve months.

Other Questions about Critical Illness Cover

If your particular critical illness improves after diagnosis then the money does not have to be returned, it is yours to spend or do whatever you want with. If your health really improves you may even be able to start working again, which would be a great outcome. Remember that claims could be refused in the case of risky behavior done like taking part in dangerous sports. Be aware how drug or alcohol abuse could affect your claim. Claims may be refused if you do harm to yourself or harm has been caused as a result of a civil disturbance, riot or war. If you have not disclosed everything on an application like essential information about yourself then this can affect a claim too.

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