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.