Both disability insurance and critical illness offer a wealth of benefits for sick people. How do you determine which type of insurance policy to purchase? Here are some things to think about:
Disability Insurance
Pros:
- Suppose you are eligible to receive benefits and have passed the time limit for elimination or waiting to receive benefits. In that case, you can expect your monthly payment to be available. These payments will continue until you become disabled and ineligible to work or have reached the maximum monthly payments set in the policy.
- For the duration of your disability, you will get paid in consistent monthly amounts. The payments may cover your financial commitments, medical expenses, and other expenses. Due to the simplicity of budgeting, many consumers favor the monthly installment feature.
- Benefits payments are generally tax-free unless the employer has paid for policy premiums on your behalf.
- You could be able to make your benefits set so they get indexed to inflation. It could provide security so that the number of gifts you could receive increases every year in line with your earnings while you work.
- You might be able to claim a “recovery assistance” benefit from this policy, too, in the process of regaining your ability to work following a period of disability.
Cons:
- Your benefits get calculated on the percentage of your income. Due to this, the amount you receive could not be sufficient to meet your expenses. They get not intend to replace your income entirely. Benefits can get reduced when you have other income sources.
- Suppose your insurance policy defines disability as the inability to perform a “regular” job or any other occupation. Even if you cannot find employment in your current position, you might not be qualified for benefits in that situation.
- Benefit payments end when you are ready to return to work or after the maximum fee has to get made.
Critical Illness Insurance
Pros:
- Suppose you are diagnosed with severe disease, according to the definition and details in your policy. In that case, insurers will offer you an amount in one lump sum payment following your waiting time.
- Suppose you’re physically capable of performing this. In that case, there’s no reason why you shouldn’t continue work after your diagnosis and still get your benefits.
- You can utilize the benefit payment amount to cover your medical bills or pay for any financial liabilities. In some cases, the benefit amount is enough to enable insured individuals to pay off mortgages or other significant obligations, which could ease budgeting over the long term.
- The amount of your benefit can be whatever you select when taking out the insurance policy. It is not linked to your earnings by any means.
- You could be eligible for partial payments under certain circumstances if you suffer from a disease listed by the policies. Every policy is unique, and it’s crucial to know how and under what conditions the procedure you’re considering can pay for benefits.
Cons:
- Based on the amount of insurance you choose, You may notice your premiums to be more than the amount you’d pay under the disability insurance policy.
- Although a lump-sum benefit payment can immediately be a reliable cash source, you don’t feel the security or comfort knowing an ongoing benefit payment is due.
- You’ll be able to receive benefits if diagnosed with a medical illness listed in the insurance policy.
Reach Out to Ottawa Life Insurance to Learn More
We at Ottawa Life Insurance know the financial hardship that can occur when a person gets sick and doesn’t have insurance coverage. We’re determined to help customers avoid the same situation. Whether answering questions about insurance or helping you get coverage that will give you and your family peace of mind now and in the future, we’re here to help.
Contact us at (613) 454-1424 or email us at info@ottawa-lifeinsurance.ca to learn more about the benefits of critical illness or disability insurance and explore policy options and features.
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