What is the difference between critical illness and disability insurance?

Disability vs. Critical Illness Insurance

Critical illness insurance and disability insurance are both benefits that provide money while you are alive and dealing with a health-related issue. They work differently and using both types of policies might help you maximize coverage. 

This infographic outlines the major differences to ensure you have the coverage you need.

Disability insurance

  • Monthly benefit
  • Waiting period to get coverage
  • Need to be employed
  • Payout is tied to income (usually 67% max)
  • Ends at 65 years old
  • Return on premium every 7 – 8 years if there have been no claims
  • Typically found in group plans

Critical illness insurance

  • Lump sum payment
  • Lesser to no waiting period to get coverage
  • Don’t need to be employed
  • Payout not tied to income
  • Not tied to age
  • Return on premium once, only on cancellation
  • Typically purchased independently

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