Sunday, May 11, 2008

Term and critical illness

Dear Tan Kin Lian,
Beside accidental, natural death and Total Permanent Disability, does Term Life Insurance cover the 36 critical Illness?Example: If someone purchase Term Life Insurance and unfortunately he die because of kidney failure (one of the 36 critical Illnesses).

REPLY
Term insurance pays on death for all causes, including death from all the critical illnesses (i.e. natural death).

A critical illness policy pays immediately on the covered critical illness (i.e. does not need to wait until death occurs). Hence, the critical illness pays earlier. The money can be used to treat the critical illness. The premium for cricial illness is higher than for term insurance, usually by about 50%.

If you are covered under a medical insurance policy, which can take care of the treatment of critical illness, you can buy a term insurance to cover death (instead of a critical illness policy).
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5 comments:

Khiat Han Hwee Adrian said...

Critical Illness Coverage can be crucial if one is not able to work for a few years.

My suggestion is to get yourself covered for at least 3 years of your income with a Critical Illness Term plan. You can coincide the Term(Years to cover) to your retirement age.

May 11, 2008 11:33 PM
Thomas Phua's Blog said...

Some Term insurance do cover Terminal Illness.

So it is not upon death then there is a payout.

As long as the doctor certify that the insured has less than 12 months to live, the sums can be paid out.

May 12, 2008 10:13 AM
Collin said...

Terminal and Critical Illness are completely different, don't get mixed up.

May 13, 2008 1:47 PM
Thomas Phua's Blog said...

There are two types of term we are talking here.

1. Critical illness term
2. Normal Term

Critical illness term, Income has Living Rider that covers lost of life, PTD and the 30 specific dread diseases.

I-Term covers any lost of life, PTD or on Terminal illness.

Premium for i-Term is much lower than the Living Rider.

You can have a i-Term with Living Rider added on and hook on a special waiver.

I know this is very technical, but the above combination can give u very good coverage at low cost.

Both are term plan.

May 14, 2008 12:53 AM
tatos@irc.rizon.net said...

For health policies like disabilities, critical illnesses, long-term health, etc.

Its better to solicit advises from a dedicated, independent and quality 'insurance' advisors who could actually explain their products in greater detail and clarity.

Health Insurance is perhaps some of the most confusing Insurance type as there are many little things one have to watch out for before even purchasing the policy.

May 14, 2008 11:39 AM

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