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Difference between Critical Insurance and Disability Insurance
posted at 7/28/2012 2:50 AM EDT on Workforce Management
critical illness cover and disability insurance are both the cover that individuals take to safeguard them from any uncertain event.
They are two typical insurance policies that are easy to confuse, but they satisfy two different needs, hence they hardly overlap. Here are some FAQ that most people ask about the living benefits policy.
What is Long Term Disability Insurance?
Long Term Disability Insurance provides you coverage when you become disabled. The benefit will last for few years- and possibly when you are ready to retire. This insurance coverage will provide you pipeline of income.
Basically, it pays you monthly amount, a percentage of amount you earned before you retired.
What is critical illness insurance?
Critical illness insurance pays you a tax free Lumpsum amount if you acquire critical illness like heart attack, stroke, multiple sclerosis, brain meningitis, etc.
The money can be use anywhere, according to your needs and requirements. You can use it in travelling, to pay of debts, for healthcare, to take a vacation, etc.
The major benefit of this policy, if you are healthy, you can even get back every premium dollar.
Difference between Critical illness insurance and Disability Insurance
The major difference between critical illness cover and disability insurance is highlighted below
critical illness cover- In this you will get a Lumpsum amount that can be utilized according to your needs and requirements.
Long term disability Insurance- It is a way to replace a portion of your monthly income.
Critical insurance- This policy can be used for various purposes like travel, home care, and any other treatments that you think fit.
Long Term Disability insurance- It provides smaller amounts to replace your monthly earnings. It may last only for few years.
Loss of Income
Critical Insurance- In this insurance policy, no ongoing loss of income is needed.
Long Term Disability insurance- This policy requires evidence of a loss of ongoing income. This policy is bit stringent in contrast with critical illness cover.
Critical illness insurance- This insurance policy is not affected whether you are earning an income or not. You will get the amount, whatever is the case.
Disability insurance- Disability insurance will cease to provide benefits when you start earning income again.
So, should I obtain disability insurance quote or critical illness cover quote?
The next line of fire is whether to obtain disability insurance quote or critical illness cover quote. The answer is it is dependant on your personal life, the statistics reveals thee fact that people suffer more from critical diseases in contrast with disability, so critical illness cover is the favorite product. If you remain healthy, you will get all premium dollars returns that can be used in your retirement years.
Re: Difference between Critical Insurance and Disability Insurance
posted at 7/28/2012 6:15 PM EDT on Workforce Management
|Is there a question here? Or are you just posting for the sake of posting info that we all know?|