Term life insurance pays out a lump sum to your named beneficiaries if you pass away during the policy term, primarily designed to protect dependents financially after your death. Critical illness cover, by contrast, pays out a lump sum to you directly if you're diagnosed with a specified serious illness covered by the policy, while you're still alive, intended to help cover treatment costs or replace lost income during recovery rather than to support beneficiaries after death, making the two products complementary rather than substitutes for one another.
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Frequently Asked Questions
Can I have both term life and critical illness cover at the same time?
Yes, this is common - many people hold both, either as separate policies or as a combined rider, since they cover different financial risks.
Is critical illness cover only for specific listed conditions?
Yes - policies define a specific list of covered critical illnesses, so it's worth reviewing exactly which conditions are included before assuming broad coverage.
Does a critical illness payout affect my life insurance policy?
This depends on whether the two are structured as separate policies or as an accelerated rider on the same policy - a rider payout may reduce the life cover amount, while separate policies typically don't affect each other.
Does critical illness cover replace the need for health insurance?
No - critical illness cover pays a lump sum on diagnosis, while health insurance covers ongoing medical treatment costs, so the two serve different purposes and aren't substitutes.
How can I compare term life and critical illness policies?
Use the insurance comparison tool to compare coverage, covered conditions, and premiums across policies.