We all die eventually!(which assurance).

JESSROBBIE

Hello again.
Am I missing the point? But I thought the idea of life insurance was to provide for your dependants upon our untimely departure.
Why then would I consider "critical or terminal" cover on a policy.By the nature of this type of illness then surely death would be imminent anyway and therefore it isn,t worth paying the extra premium.
Sorry to sound so morbid.

Any thoughts?

OshayAway

Firstly, terminal illness cover (tic) and critical illness cover (cic) are two very different things. TIC is included on most (if not all) life assurance policies and pays out if you are given less than 12 months to live. It is a free benefit that excludes the last 12 or 18 months of the term which ensures there is no additional risk to the insurer.

The idea is that this early payout could be used to ease this difficult time and help get one's affairs in order, make the last few onths as comfortable as possible... or maybe just to go out with a bang!

Critical illness policies pay out on diagnosis of a specific ci as defined by the policy. Most causes for claim are not terminal but generally survived for some time. These CIC policies are designed to ease the financial strain that results from diagnosis of a serious health problem in the short to medium term. 80% + of claims are for cancers, heart attacks and strokes.

dunstonh

Why then would I consider "critical or terminal" cover on a policy

Terminal illness is free of charge on virtually all life assurance plans. So, there is no reason not to consider it. In fact, there are only a handful left where you can select to have it or not.

Critical illness is something totally different and shouldnt be mixed up (although it often is by those arranging their plans DIY).

FH_Brit

As you say;
"Am I missing the point? But I thought the idea of life insurance was to provide for your dependants upon our untimely departure"
= ASSURANCE - we are all going to die.

""critical or terminal" cover on a policy.By the nature of this type of illness then surely death would be imminent anyway"
= Insurance - not deffinate as you MAY not get a critical or terminal.

FH_Brit

Remember - Assurance = against something that WILL definately happen (like death).

Inurance = against something that MIGHT happen (like cancer, an accident, etc.