Coverage

• Whole life normally covers an individual until his or her death. Term life stays in effect for a specified period or until a certain age of the insured. According to CriticalIllnessCover.org, when critical illness coverage was first introduced, it covered four main illnesses--heart attack, stroke, cancer and coronary artery bypass surgery. Today, most critical illness policies also provide coverage for deafness, blindness, kidney failure, HIV, paralysis, or terminal illness.
  
  

Benefits

• A whole life policy builds up a cash value over time. BusinessDirectory.com explains that, unlike a term life policy, a whole life premium amount remains constant despite age. Second, the insured may obtain a loan against any accumulated cash value. Term life is usually the cheapest type of life insurance. You can purchase critical illness through any other insurance you have, such as life or group health insurance.
  
  

Exclusions, Restrictions and Limitations

• Life insurance policies typically have a specified period in which the company can contest cause of death before paying. Acts of war or military service deaths are not usually covered. Most policies will not cover suicide. In "Protecting Your Assets and Lifestyle," critical illness specialist Theodore Massaro states that your best move is to consult with your licensed financial adviser on how specific contracts may work for your particular situation.
  
  

Costs

• The American Association for Critical Illness Insurance advises that the cost for coverage is based on your age when you apply, your health when you apply, your sex, and whether you use tobacco products. Similarly, the coverage amount, premium, and exclusions/limitations of a life insurance policy--term or whole--will depend upon a similar set of criteria.
  
  

Buying tips

• The American Council of Life Insurers recommends that, once you decide to buy life insurance and you've learned about the types of policies available, you will have to decide if you want to work with an agent or buy directly from an insurance company. You will need to determine who your beneficiary will be and, if you're replacing an existing policy, what kinds of coverage you need to add or remove.