People often use these names interchangeably, but each policy pays out in a different situation and in a different way.
Life insurance
Pays out if you die during the policy term. It is often used to clear a mortgage or leave money for your family. Decreasing cover reduces over time alongside a repayment mortgage; level cover stays the same.
Critical illness cover
Pays a lump sum if you are diagnosed with a condition defined in the policy. It can clear or reduce debts and give you breathing space while you recover. It is often added to life insurance, in which case it usually pays out once, on whichever claim comes first.
Income protection
Pays a regular monthly amount, usually a percentage of your earnings, if illness or injury stops you working. It starts after a waiting period you choose and can continue until you return to work or the policy ends. It is especially relevant if you are self-employed or have little sick pay.
Which do you need?
It depends on your mortgage, savings, sick pay, family and budget. Many households combine two of them, for example life and critical illness cover for the mortgage and income protection for monthly bills. Charlene can help you prioritise if your budget doesn't stretch to everything.
Read about critical illness cover advice or talk to Charlene.