Term and critical illness

Dear Tan Kin Lian,
Beside accidental, natural death and Total Permanent Disability, does Term Life Insurance cover the 36 critical Illness?Example: If someone purchase Term Life Insurance and unfortunately he die because of kidney failure (one of the 36 critical Illnesses).

REPLY
Term insurance pays on death for all causes, including death from all the critical illnesses (i.e. natural death).

A critical illness policy pays immediately on the covered critical illness (i.e. does not need to wait until death occurs). Hence, the critical illness pays earlier. The money can be used to treat the critical illness. The premium for cricial illness is higher than for term insurance, usually by about 50%.

If you are covered under a medical insurance policy, which can take care of the treatment of critical illness, you can buy a term insurance to cover death (instead of a critical illness policy).