Understanding the difference between Critical Illness Insurance and Disability Insurance

Life is unpredictable, often throwing curveballs when you least expect it. No matter how hard you try to prepare for all possibilities, it’s impossible to foresee when a disability or a critical illness may affect you or your family. These moments often catch people unaware and unprepared, often interfering with your life goals and future.

The only way to safeguard your future is to invest in proper critical illness and disability insurance. A common confusion many people have is understanding the difference between these two coverage types and if having one suffices.

What is Critical Illness Insurance?

Critical illness insurance protects you if you become critically ill; usually paid out in one lump sum. This gives you the ability to cover any expenses incurred due to your illness and recovery. Critical illness insurance will cover a multitude of unexpected illnesses such as cancer, Alzheimer’s, multiple sclerosis, stroke, heart attack and anything else of a similar nature.

Unfortunately, illnesses that fall under the category of a critical illness are generally unforeseeable and therefore you’re usually caught of guard in terms of finances and time lost at work to deal with your illness. This is what makes critical illness insurance so vital and an absolute necessity.

What is Disability Insurance?

Disability insurance will supply you with a monthly payment to supplement your inability to return to work due to illness or an accident. Any circumstance that prevents you from working and endangers you and your family’s financial security is a frightening prospect; disability insurance will ensure you are protected as it replaces a portion of your income.

Although most workplaces do provide some form of insurance for these situations, the reality is that most workplace insurance is set to cover you on a limited basis. Relying solely on your workplace insurance might not be enough to supplement your income.

Obviously, having one or the other is a fantastic start however having both is clearly the ideal solution. Protecting your future naturally involves considering all possibilities and investing in both critical illness and disability insurance is the only way to secure your peace of mind.

Don’t ever let yourself be caught in a situation where your income is put at risk or where your health is forced to take a backseat to your finances. Call our advisors at Independent Financial Concepts Group at (416) 849-1653 or visit us at www.wecoveryou.ca to inquire about the possibilities of obtaining Critical illness insurance and Disability insurance and start planning for your future today!

Written by Gary Mandel


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