Critical illness and disability insurance coverage are not the same, but are both beneficial and necessary for a secure financial plan. While you have the option of one or the other, it is in your best interest to consider both, because both pay out in very different ways.

 

Disability insurance, provides income for individuals when they are unable to work because of injury. 

​

Critical illness insurance, pays a tax-free lump sum payout following the diagnosis of a serious illness.

​

Both policies work together and not against each other. They allow the critical illness sum to cover what the disability insurance does not; therefore, individuals with severe illnesses that cannot work or will have reduced hours have full coverage. 

​

The critical illness insurance pays out where the disability insurance fails to do so. This insurance covers those necessary gaps, and does not have to worry about financial losses, or using up hard earned retirement savings and ensures that they have enough funds to survive.

​

Critical illness insurance also covers those medical expenses that are not covered by healthcare insurance plans. Most cancer medication is not covered (if prescribed), or is partially covered by individual or employee benefit packages. They also cover the non-medical expenses, such as rent or mortgage, car payments, insurance payments, and even utilities.

​

There are instances when an individual can still work part-time, which means their disability insurance benefits are cut dramatically based on the fact they are still working. Critical illness insurance, on the other hand, still pays out regardless if the individual is working part-time, full-time, or not at all. Therefore, it is a good supplement when an individual becomes severely ill and must miss work for treatments.