Critical Illness vs Disability Insurance What is the difference


Disability and critical illness insurance can both help individuals in a time where they are unable to work. There are still several differences between the two forms of insurances. Disability insurance is meant for short or long-term durations where an employee is unable to perform their job due to an injury, illness or mental health issue. Critical illness insurance is a form of coverage that solely protects employees financial situation if they are unable to work based on a specific and diagnosed critical illness. The way to qualify for these insurance claims and the form of compensation are major differences between the two forms of insurance.

If you become unable to complete your job task due to a personal injury, illness or mental health issue, you can qualify for a disability insurance claim. Disability insurance pays out a percentage of your lost salary to you so that your financial situation can remain secure while you get back on your feet. There are various forms of disability insurance policies that can meet your specific coverage needs. Disability insurance can be provided under a group benefits plan and or as an individual policy. Two major categories of disability insurance are short-term disability insurance and long-term disability insurance:

* Short-term disability Ð can be an ideal claim for continuing to receive portions of your income after your sick leave has run out. Short-term disability insurance plans can often pay out disability for between 9 to 52 weeks.

* Long-term disability Ð long term disability is ideal for continuing your disability coverage past your short-term disability cut off date. These claims can often last for between 2 and 5 years, or until you reach 65 years of age.

If you have recently been diagnosed with a life-threatening or otherwise critical illness, you may qualify with for critical illness insurance. Critical illnesses such as autoimmune disorders, various forms of cancer, heart disease and other potentially fatal sicknesses can allow individuals to qualify for critical illness insurance. To qualify for critical illness coverage the policyholder must live for a specific number of days after the initial diagnosis. The specific terms of your critical illness contract will dictate what forms of illness diagnosis are considered valid. The compensation format of critical illness insurance is another large differentiating factor when compared to disability insurance. Critical Illness insurance plans can be structured to both pay out a lump sum of money upon the initial diagnosis or to pay out the individualÕs regular income while they undergo procedures to combat the illness.

Both critical illness insurance and disability insurance can be extremely useful if you are facing serious health issues, injury or illness. The difference in the two forms of insurance lies in the policyholder claim eligibility and in the ways the insurance compensation is delivered. Disability insurance in paid when individuals cannot perform the desired job task due to a health issue of some kind. Critical illness insurance deals with a specifically specific illness and pays out a lump sum of money to the diagnosed policyholder. Fro more information on the differences between the two forms of insurance and to discover which type of insurance policy is ideal for your needs, contacts a trusted insurance provider today!