It’s easy to become confused when you’re trying to understand the many different kinds of insurance. This can become even more complicated when attempting to see distinctions among similar types of insurance, like critical illness insurance and disability insurance.
An insurance broker is the best way to purchase a critical illness insurance policy. Critical illness insurance is there to protect you against costs you may confront when diagnosed with a critical illness such as heart attack, cancer, or stroke. On the other hand, disability insurance is designed to pay a portion of your income to you, in the event that you are unable to work due to a disability. Critical illness insurance gives you a lump sum payment, depending on what is specified in your policy. This means that you will get one payment when diagnosed with an illness, regardless of whether or not you recover.
Disability insurance is designed to pay you a monthly benefit instead of one lump sum. This benefit is a percentage of what you were earning before becoming disabled. Disability insurance requires continuous proof that you are suffering from a loss of income; payments are stopped when you return to work and begin earning money once again. In contrast, there is less burden of proof with critical illness insurance, as it is not affected by any other income you earn.