Life insurance covers against the loss incurred upon the death of an individual. Dying is the triggering event that makes the insurer pay a claim.
Critical illness insurance covers against the loss incurred by a major medical condition like stroke, heart attack, or cancer. The triggering event is the illness. The insurer pays a claim to help cover the costs associated with the illness.
President | Founder, CLM Insurance Group, Delray Beach, FL
Life insurance pays a lump sum to a beneficiary upon the death of the insured. A critical illness policy pays the insured upon the diagnosis of a critical illness. Although different in nature critical illness policies are often written on a life insurance chassis allowing the money to be paid out upon the diagnosis of a covered critical illness and if the insured dies from the critical illness it will pay the benefit, or some portion of, to an assigned beneficiary.
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Critical illness insurance covers against the loss incurred by a major medical condition like stroke, heart attack, or cancer. The triggering event is the illness. The insurer pays a claim to help cover the costs associated with the illness.