Critical Illness (CI)
Term Life Insurance
Whole Life Insurance
Asked 3w ago
Critical illness coverage normally comes in the form of a rider for most term and whole life policies or as a stand-alone insurance policy.
This would depend on what rider you add to the plan.
Most whole life and term life policies are structured to cover death only. Coverage of TPD, CI and early CI is via the addition of riders to the plan. (I'm not looking at CI focused plans such as multipay)
For example, you could have a term plan covering death till age 65. You'll only see the money (well, your family will see it) when you die. By adding an early CI rider, should you be diagnosed with early CI, you will now see the money and be able to use it for treatment, etc.
In short, by default, no, life insurance doesn't come with CI cover. Add the riders that you need to give you what you are looking for.
Critical Illness (CI) coverage comes as an optional add-on for Whole Life plans. Typically, this is achieved by adding on a CI rider to the Whole Life plan. For people who desire limited payment for a 3-in-1 whole lifetime coverage for death, TPD and CI, this is something worth exploring.
CI plans are typically Accelerating in general. What this means is that it accelerates out the death benefit, ie. it reduces your death benefit upon diagnosis of CI. If it's a 100% acceleration, it reduces your death benefit by 100% hence terminating any death/TPD benefit and closing the plan as a result. This can be mitigated by adding an Additional CI rider which pays out for a CI diagnosis but they typically mark up the premiums quite a bit.
There are other ways to go around that either by getting a standalone CI plan or reducing the acceleration of the CI rider. But which option to adopt will depend on what your objectives and budget are. Do consult a licensed financial advisor to fid out more and explore your options.
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