Is Terminal Illness cover different to Critical Illness cover?

Terminal Illness Insurance is usually included free of charge within Life and Critical Illness policies.

With Terminal Illness cover, if you are diagnosed with an illness from which a Doctor confirms that you are expected to die within 12 months of diagnosis, the policy will payout immediately.

Critical Illness cover is much more comprehensive. You will be able to make a claim on your critical illness insurance if you have:

* A serious or chronic illness that is listed on your policy

* You require a particular type of operation which is listed on your policy

* Or you suffer from any condition or have an accident that 'totally and permanently' means that you cannot work.

The essential difference to appreciate between critical illness cover and terminal illness cover is that with terminal illness cover, you must be expected to die within 12 months of diagnosis. There is no such limitation with critical illness cover - indeed with many of the insured illnesses, you may survive many years (e.g. blindness).

You may find it surprising, but 1 in 5 men and 1 in 6 women suffer a critical illness before their usual retirement age - so it really is worth taking out critical illness insurance.