What is the difference between critical illness and disability insurance?

Name: CU Financial Management
Telephone: 1-888-884-3207
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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