All Guides
Home Guides Terminal illness cover vs critical illness cover

What’s the difference between terminal illness cover and critical illness cover?

Written by Gemma Bellamy

Terminal illness and critical illness cover are different types of personal insurance, and it's easy to get them mixed up.

Terminal illness cover pays out if you receive a diagnosis that means you're likely to have less than 12 months left to live, while critical illness cover pays out if you’re diagnosed with an illness or condition from a pre-defined list.

It’s important to understand the differences to get the cover that’s right for you, so let's take a closer look.

Terminal illness cover vs critical illness cover: the main differences

Cover featuresTerminal illness coverCritical illness cover
When it pays outIf you’re diagnosed with a terminal illness, with less than 12 months to liveIf you’re diagnosed with a specified illness such as cancer or stroke
Who the payout goes toDirect to policy holderDirect to policy holder
What it can be used forTo cover any costsTo cover any costs
How it affects your life insurance policyCounts as an early payout on your life insurance policy. This means your life insurance policy will end if you make a claim on your terminal illness coverThis depends on the type of critical illness cover you have. If your critical illness cover is combined with your life insurance policy, making a claim on your critical illness cover will end your life insurance policy. If your critical illness cover is separate to your life insurance policy, your life insurance policy will remain active
How much it costsIncluded as standard with Beagle Street’s life insuranceIt’s an optional add-on to Beagle Street’s life insurance, so your monthly premiums will be higher

What is terminal illness cover?

If you have terminal illness cover as part of your life insurance policy (this comes as standard with Beagle Street life insurance), you’ll receive the sum assured if you’re diagnosed with a terminal illness.

We define an illness as “terminal” if it means you have less than 12 months to live.

What can terminal illness cover be used for?

The cash lump sum payout you’ll receive can help support you in your final months. This can reduce financial worries at an already difficult time for you and your family.

For example, you may choose, or need, to stop working so the payout could be used to cover your bills or pay for care. Or you could use it to create some lasting memories with your loved ones.

Does Beagle Street provide terminal illness cover?

Yes. All Beagle Street life insurance policies include terminal illness cover as standard. That means your policy pays out either when you die or when you’re diagnosed with a terminal illness.

What is critical illness cover?

Critical illness cover pays out a lump sum if you’re diagnosed with any of the specified illnesses covered by your policy. This usually includes certain types of cancer, heart attack or stroke.

Beagle Street’s critical illness cover pays out if you’re diagnosed with any of the conditions listed in our policy terms and conditions.

You can only claim on your critical illness cover once. Once you’ve made a claim on your critical illness cover it will close, and your premiums will stop once your claim has been paid.

If your life insurance policy is combined with your critical illness cover then the life insurance policy will close too. If you have a separate life insurance policy this can continue after your critical illness claim.

What can critical illness cover be used for?

Just like with terminal illness cover, how you spend the payout is totally up to you.

The cash lump sum payout can help take away the financial strain your illness may have on you and your family while you recover.

Critical illness cover payouts are often used to cover mortgage or rent payments, towards medical or care costs, making adaptations to your home and any unexpected expenses.

Does Beagle Street provide critical illness cover?

Yes. You can add critical illness cover to your Beagle Street life insurance policy during the application process.

Children’s critical illness cover

Children’s critical illness cover is available as an add-on to your critical illness cover with Beagle Street.

The cover pays out if any of your current or future children are diagnosed with a common serious illness such as cancer, heart attack or stroke. You can see the full list of conditions covered in our policy terms and conditions.

The cover amount for children’s critical illness is 25% of the main policy holder’s critical illness cover, up to the amount of £25,000. There’s no limit to the number of children you can cover.

Why choose Beagle Street for your terminal illness or critical illness cover?

We’re a dedicated life insurance provider that cares about protecting you and your loved ones.

With terminal illness cover included in all our life insurance policies as standard, and critical illness and children’s critical illness cover available as simple add-ons, we’re also flexible and able to meet individual needs.

What’s more, we’re committed to sticking to the premiums we offer when you take out your policy, which means the amount you pay each month will never go up, even if there are changes to your health (unless you request changes to your policy).

We’ll guide you through the application process, so you can have confidence that your family will be protected.

Don’t just take our word for it. We’re proud that our customers have rated us ‘Excellent’ on Trustpilot!

Ready to find out why? Our simple, quick quote tool will let you know how much cover you can get and how much it’s likely to cost you. There’s no commitment to take out a policy.

Get a quick quote

You may also be interested in...

Two people sitting on a bench looking out to sea

Accidental death benefit acts as short-term cover while you’re waiting for a decision on your life insurance application.

Life insurance and life assurance aren't the same thing. It's important to understand the difference to decide which is right for you.

Joint life insurance policies

Joint life insurance protects two people under one policy. The policy closes after it's paid out once.