Please note: Life Insurance is also known as:

A Life Insurance policy pays out the amount of money the policyholder has been insured for in the event of their death during the term of the policy. It is primarily designed to help protect immediate family members and other dependents from financial hardship, such as the possible forced sale of the family home.

Most leading policies include a Terminal Illness Insurance at no extra cost. In the event that the policyholder is diagnosed with a terminal illness (defined as where life expectancy is less than 12 months), then the insurer will agree to pay the amount of money insured on diagnosis rather than death. However, this benefit is not available during the last 18 months of the Life Insurance Policy.

Critical Illness offers additional cover to life insurance. It pays out the amount of money insured should the policyholder be diagnosed with having one of the specified Critical Illnesses. Not all companies have the same Critical Illnesses, so it is important that the policyholder is familiar with the inclusions and exclusions before any documentation is signed.

The illnesses usually covered are:

For your information, Critical Illness Insurance tends to be 3-4 times more expensive than Life Insurance.