Critical Illness vs. Disability Insurance: Do You Need Both?

Preparing for your future and the future of your family can be both an exciting and intimidating time. Buying a house, establishing yourself in a stable career, or building your family are all promising things that you may see in your future. But there are some things that you may not foresee– such as a critical illness or a disability – which you also need to prepare for.  

Preparing for a critical illness or a disability by obtaining insurance is a smart choice. But critical illness vs. disability insurance– do you need both?  Although some people think that both critical illness and disability insurance are not necessary, often times having both critical illness and disability insurance protects you when only one of them may not. 

What is critical illness insurance? Critical illness insurance is a type of health insurance that covers you should you become critically ill. It comes in the form of a lump sum payment that gives you the freedom and security to pay for whatever may arise during the course of your illness, or if possible, your treatment and recovery. 

What is covered by critical illness insurance? Critical illness insurance covers a multitude of unpredictable illnesses. These can include cancer, heart attack, stroke, Alzheimer’s, multiple sclerosis, organ transplants, and many others.

What are the benefits of critical illness insurance? If you are forced to take a significant period of time off work to receive treatment or to recover from a critical illness, most public and private health plans do not provide funds for the daily expenses you are responsible for, meaning you could face financial strain if you have not made provisions for this stressful situation. Obtaining critical illness insurance is therefore essential.

What is disability insurance? Disability insurance provides a monthly payout if you are unable to return to work, thereby replacing a portion of your income. If you suffer from an illness or are in an accident that prevents you from continuing in your current occupation, this can severely impact your ability to continue to make the payments that are vital to your family’s security and livelihood.

What about employer provided insurance programs – do they provide these types of coverage? Some may, but typically they are offered on a limited basis, providing coverage for short periods of time. Relying on your employer’s coverage can become an issue – so seeking supplemental insurance coverage can be critical.

Critical illness vs. disability insurance – do you need both? Having one or the other is great, but having both is even better. Planning for one tragedy that can impact your income but not another isn’t ideal. To make sure that you and your family are protected in the event of an accident or illness, having both ensures that you will be able to provide for them, while continuing to maintain your financial security.

Purchasing life insurance to provide for your family in the event of your passing is incredibly important. However, providing for them in case of a disability or critical illness is also essential when preparing for the security and future of your family. Making sure that anything that can interrupt your income is covered by an insurance policy is crucial if you want to remain financially protected no matter what happens in life.

To find out more about critical illness vs. disability insurance and why it is a good idea to have both, please contact Gary Mandel at Independent Financial Concepts Group by calling 416-849-1653 or visit www.wecoveryou.ca