Critical illness cover can be added to a life assurance policy as an additional benefit or set up as a stand alone policy, providing the following features:
- Coverage: Pays out a lump sum if you are diagnosed with a specified critical illness (e.g., cancer, heart attack, stroke). Each provider may have different illnesses that they will pay out for.
- Combined or standalone: Can be purchased as a standalone policy or combined with a life assurance policy.
- Payout: If a critical illness claim is made, the policy pays out the specified amount, which can be used for medical expenses, lost income, or other needs.
- Impact on life assurance: Depending on the policy, a critical illness payout may reduce the life assurance benefit, or the policy may terminate after the critical illness benefit is paid.