Serious illness insurance, also known as critical illness insurance, is also a form of life insurance. What differentiates a serious illness policy is that it pays on the person covered being diagnosed with a particular medical condition.

Modern policies can cover close to 50 illnesses and it is important to understand the different illnesses and additional benefits offered by the different life offices. In this respect the advice and diligence required in providing in putting a serious illness policy in place is considerable greater then with other term assurance products.

A serious illness policy may be put in place on a "stand alone" basis meaning that the policy pays only on the person covered becoming ill and not on death. Serious illness policies can also be combined with a life policy that pays on death so as part or all of the amount covered pays on the insured becoming ill.