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Critical Illness Insurance, Disability Insurance or Life Insurance…oh my!

ADI illness insuranceMost of us know we’re going to die. But did you know that 33% of Canadians will develop a life-threatening cancer? Or that 50% of heart attack victims are under 65 years old?

Each year, 50,000 Canadians suffer a stroke, three-quarters of which result in a disability. And 75% of Canadians will have cancer, heart disease or a stroke at some point in their life. (A little disheartening isn’t it?)

Those stats, gloomy though they may be, are some of the reasons critical illness insurance is just as important, if not more so, than life insurance.

Critical Illness Insurance: What is it?

Often referred to as a living benefit, critical illness insurance provides a lump sum payment of a significant amount to help support you financially if you’re diagnosed with and survive a covered critical illness. Thirty-one days after diagnosis you will receive a payment that you can use in whatever way you want — from paying off your mortgage, paying for treatments not covered by provincial plans or making modifications to your home and vehicle to help with mobility to taking a trip with loved ones, buying a new wardrobe after weight loss or covering the cost of a spouse taking leave from work. A Critical Illness plan allows for some financial peace of mind and freedom of choice.

How does Disability Insurance differ from Critical Illness Insurance?

Unlike critical illness insurance, disability insurance is an income-supplementing benefit that provides a salary when you can’t work due to injury or illness. It’s based on your earnings (typically 66% of income) and paid out on a regular and ongoing basis. Often there is a need to provide proof of on-going income loss, and coverage can stop upon return to work. A sort of safety net, it offers a good foundation of a living benefits plan.

Life Insurance, Critical Illness Insurance or Disability Insurance: which is better?

Aside from sounding like the worst parlour game ever, trying to decide what kind of insurance coverage to spend your money on is difficult. And often the coverages work together. Each person has their own individual variables to take into account. Age, family and employment circumstances, health history and how much is available to spend all come into play.

At ADI Benefits we help you consider all your options and make the choice that works for you.

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