The difference between life insurance and critical illness cover.
When someone takes out life insurance and dies during the duration of the policy, their chosen beneficiaries will receive a lump sum. This can protect against a loss of income, the taking on of debts such as a mortgage or any other costs. Critical illness cover can help with similar financial issues but comes into effect if the policy holder is diagnosed with an illness from a list of critical illness conditions. Both are worth considering if you have any dependents who rely on you financially.
The difference between critical illness insurance and income insurance.
The primary difference between critical illness cover and income protection is in the payout. Critical illness cover is designed to help you cope financially if diagnosed with a critical illness specified in your policy, by providing a one-off lump sum. Income protection pays a percentage of the policy holder’s income each month if they are unable to work. The percentage of income and the length it pays out for are agreed at the outset.