Difference Between Critical Illness and Terminal Illness in Term Insurance

Term insurance is a pure protection plan that has become a basic necessity for everyone. However, do you know that it can be customized for your specific requirements? Yes, you can enhance your base cover with in-built riders to protect yourself from specific conditions like accidents and life-threatening illnesses.

It is sad to spit the fact that critical and terminal illnesses have become quite common these days. While terminal illnesses are life-threatening diseases that cannot be cured with almost no chance of survival, critical illnesses can be treated completely by getting extensive medical treatment.

Both terminal illnesses and critical illnesses are covered in term insurance through riders or in-built benefits.

What is Terminal Illness Cover in Term Insurance?

Terminal illness is a life-threatening disease with no chance of survival. It may take some months for someone to pass away from a terminal disease.

Therefore, a terminal illness diagnosis can have a devastating impact on your family as well as their financial condition. The hospital bills, doctor treatments, surgeries, medications, and other expenses can burn a hole in your pocket.

To keep this at bay, if you have a family history of a terminal illness or are suspecting diagnosis due to your lifestyle you should buy a term plan with a terminal illness benefit or rider. Up on the diagnosis of the disease, the rider gets kicked in and pays a lump sum portion of the death benefit for the treatment after a survival of 30 days.

What is Critical Illness Cover in Term Insurance?

To put it simply, a critical illness can be treated, and it comes with a ray of hope for recovery. However, it can strike anyone irrespective of age, gender, or status, and without any short notice.

To get cured you've to take extensive medical treatment that can impact your financial conditions. You can prevent it with a critical illness rider, it provides financial support in case you're diagnosed with a critical disease. It allows you to claim a lump sum amount from life cover for the treatment costs of medical illnesses while you're still alive.

However, you can use the payout money to pay off ambulance charges, doctor fees, or medical expenses. You can add this rider to your base plan when buying a policy in exchange for additional premiums of up to Rs. 800 to Rs. 1000 annually.

Basic Parameters of Critical Illness and Terminal Illness

People always make the misconception that critical illness and terminal illness are the same, but it's not - it does sound the same though. Now that you know the meaning of both riders, let's understand the difference between critical illness and terminal illness with some basic parameters.

Critical Illness and Terminal Illness Cover: Who Should Purchase

Critical Illness

Critical diseases strike anyone, irrespective of age, gender, or status, and without any short notice. Therefore, the need for critical illness insurance benefits becomes necessary.

Are you scared to burden your family with medical expenses? Therefore, you can add critical illness insurance coverage. It helps you get a lump sum so it won't affect your family's financial condition.

Terminal Illness

In case there have been instances that your family's medical history indicates some of the members getting ill with a terminal disease, then you must add terminal illness insurance benefit to your basic term plan.

Are you the only earning member, and does your family depend on your income? If yes, you can add a terminal illness rider on your term plan to settle your dependent's financial future in case of your unfortunate demise.

Conclusion

Now you know the features & benefits of terminal or critical illness coverage, and it must be easy to understand which one best suits you. Both benefits serve different purposes. With an enhanced life cover, you can safeguard yourself from financial crises and extend a comforting hand during tough times.

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