No, there are several differences between disability insurance and critical illness insurance.
For one, disability insurance, also known as “income replacement” insurance, provides a monthly income replacement benefit if you become disabled and are no longer able to perform the normal duties of your work. Generally speaking, the disability benefit is limited to a percentage of your regular income and you stop receiving it once you earn an income or if you no longer meet the definition of disability in the contract. For instance, if your illness is cured before the waiting period, no payment is made. Disability insurance is only in effect as long as you are an employee. Also, if you switch jobs, the policy may not be portable.
With critical illness insurance, on the other hand, your benefits are not dependent on your income. Instead, you receive the level of coverage that you want which may range from $25,000 to $2 million, depending on the plan that you sign up for.
Also, unlike disability benefits, critical illness benefits are not affected by other income you receive or by your full recovery from the illness. You also don't have to be an employee to reap the benefits of this insurance. You could be a homemaker, seasonal worker, entrepreneur, self-employed. With critical illness benefits, the insurance company cannot take the policy away from you, unless of course you choose to cancel it.
With critical illness insurance, a tax-free lump-sum benefit payment will be made to you typically 30 days after the claim had been approved. There are also no restrictions to how you use the money and you are entitled to collect the entire benefit even if you make a full recovery.
We are happy to answer any questions that you may have about the differences between disability and critical illness insurance and which coverage is more suitable for you and your family when coping with an illness. Please call us today at 1.888.223.1011 or send us an email at info@critical-illness-insurance.ca
Also, unlike disability benefits, critical illness benefits are not affected by other income you receive or by your full recovery from the illness. You also don't have to be an employee to reap the benefits of this insurance. You could be a homemaker, seasonal worker, entrepreneur, self-employed. With critical illness benefits, the insurance company cannot take the policy away from you, unless of course you choose to cancel it.
With critical illness insurance, a tax-free lump-sum benefit payment will be made to you typically 30 days after the claim had been approved. There are also no restrictions to how you use the money and you are entitled to collect the entire benefit even if you make a full recovery.
We are happy to answer any questions that you may have about the differences between disability and critical illness insurance and which coverage is more suitable for you and your family when coping with an illness. Please call us today at 1.888.223.1011 or send us an email at info@critical-illness-insurance.ca
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