Disability protects your ability to have an income up to age 65 (in most cases). The cause of the disability can be from a critical illness (such as heart attack, cancer, stroke, etc.), or it can be from getting in an accident – anything that would preclude you from being able to work.

Critical illness on the other hand pays out a one time lump sum should you get diagnosed with a covered condition and survive 30 days (i.e. don’t die). You may or may not go back to work – it doesn’t matter.

I would top up disability before buying critical illness. If you get critically ill to the point where you can’t work, you are covered through your disability.

Also note that we live in a country with very good healthcare no matter the wait times and all the complaints. Yes, it could be better, but you know that you won’t get bankrupted if you break a leg. So if the rationale is to pay for an MRI cross border, they are only $500 bucks and you don’t need an appointment – trust me, I know firsthand.

Having said that, there are many people who do get critical illness insurance, but again, I would spend more money on getting proper D.I. coverage or topping it up first, then the Critical Illness.

Criticall Illness and Long Term Care Insurance, to ME, are not as necessary as D.I. and term life. They are more for peace of mind as opposed to preventing a catastrophe.

Hope that helps. I really have to get on with writing that post on Disability Insurance… :)

i am about to accept it…but am curious now if disability insurance is something separate from critical insurance..

thanks
sam

Disability coverage is provided as a percentage of your gross or net income (usually 60%) and paid on a monthly basis. You can contact your HR department for more details…

…and stay tuned for more information on Disability Insurance which I will be adding.

Thanks,

Preet