1. 15786 POINTS
    Bob VineyardPRO
    Founder, Georgia Medicare Plans, Atlanta,GA
    Life insurance is mostly used to provide a death benefit. A specified lump sum is payable on the death of the insured. Some life insurance policies have "living" benefits including cash value and accelerated death benefits. Some life insurance plans also will have a critical illness rider.

    A pure critical illness policy pays a lump sum on first diagnosis of a "dread disease".
    Answered on May 12, 2013
  2. 12689 POINTS
    Ted RatliffPRO
    Owner, SFS Associates,
    Life insurance covers you in the event of death.  Critical illness covers you while you are alive, providing cash to care for the extra expenses involved with a critical illness.  Some life insurance policies offer a critical illness rider that will pay a portion of the death benefit while you are still alive. if you are diagnosed with a critical illness
    Answered on May 23, 2013
  3. 0 POINTS
    David RacichPRO
    Fountain Hills, Arizona
    Life insurance pays your beneficiary if you die. Critical illness insurance pays you if you have a need for extended care due to a sickness. And some life insurance policies offer critical illness riders that cover both. It’s important to weigh the difference in benefit language with a standalone critical illness policy or a rider with a life insurance policy. 
    Answered on May 23, 2013
  4. 0 POINTS
    David RacichPRO
    Fountain Hills, Arizona
    Life insurance is a mortality insurance product. Critical illness insurance is a morbidity insurance product. Life insurance pays a death claim in the event of the demise of the policy insured and critical illness pays a stated amount for a major sickness. There are life insurance policies that offer critical illness riders (and other riders), some of which are embedded free of charge and some that are additional costs to the policy owner.
    Answered on May 27, 2013
  5. 63333 POINTS
    Peggy MacePRO
    Most of the U.S.
    Life insurance pays a lump sum of cash to the beneficiary of the life insurance policy upon the death of the insured. Critical Illness Insurance pays a lump sum to the beneficiary of the critical illness policy upon the diagnosis of an illness specified in the policy, such as heart attack, cancer, or stroke.
    Answered on July 29, 2013
  6. 63333 POINTS
    Peggy MacePRO
    Most of the U.S.
    The difference between life insurance and critical illness insurance is that the life insurance pays the benefit upon the death of the insured person, whereas the critical illness insurance pays the benefit when the insured is diagnosed with a critical illness. The life insurance benefit goes to the beneficiary chosen by the owner of the policy. The critical illness insurance benefit goes to the person who owns the policy.
    Answered on August 10, 2013
  7. 1330 POINTS
    Mark TaylorPRO
    Licensed Life Agent, Life and Finance/ 50 States, New York
    The difference between life insurance and critical illness is that life insurance pays in the event of an unfortunate mishap upon the life of the policyholder. Life insurance pays an accelerated benefits upon the event of terminal illness in order to pay for medical bills including a waiver of premium for the time.

    Critical illness is a cash indemnity policy that pays cash benefits in lump sum tax free. Heart attack,  stroke, kidney failure, and cancer are all covered. Lump sum payments are from 20,000 to 1,000,000 depending on company and policy.
    Answered on January 18, 2014
  8. 4249 POINTS
    Gary LanePRO
    President, Lane Independent Agency, Southern California
    Life insurance pay your beneficiary when you die. Critical Illness pays too, but only if you die from a specifically listed disease or ailment. Thus Critical Illness is far more limited as to when or if it will pay your beneficiary. Usually Life Insurance is a far better and wiser choice for you to make. Unless your family has a very strong history of dying from a specific disease and you also can get a far cheaper rate for that limited coverage, go with the regular life. Thank you. GARY LANE.
    Answered on June 1, 2014
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