What's the Difference Between Critical Illness Insurance & Disability Insurance?

When trying to understand different types of insurance, it is easy to get confused. One of the most difficult distinctions to make is the difference between critical illness insurance and disability insurance.

Critical illness insurance can be purchased through an insurance agent as a private policy or provided as part of a benefits package. It is meant to protect against costs if you are diagnosed with a critical illness. While disability insurance is meant to pay a portion of your income in the event that you cannot work; critical illness insurance generally provides a lump sum payment as specified in the policy if you are diagnosed with an illness, even if you make a full recovery.

In this video, President David Share discusses the most important aspects of Critical Illness insurance.

Disability insurance pays out a monthly benefit instead of a lump sum, usually a percentage of what you earned before becoming disabled. Disability insurance requires ongoing proof of loss of income, and can stop when you are back to work and earning morney. Critical illness insurance does not require any ongoing proof of loss of income, and is not affected by any other income you make.

The fundamental difference between critical illness insurance and disability insurance is that the benefits do not hinge on your inability to work, but rather on the diagnosis of one of the policy-listed illnesses, which include but are not limited to: cancer, heart attack, organ transplant, paralysis, permanent disability, and others. Typically, a critical illness is one that results in a loss of independence. However, the definitions of what constitutes a critical illness are often contested by insurance companies, and can result in a critical illness claim being denied.

However, it is important to understand that most critical illness policies have a detailed description of the type of illnesses or conditions that will qualify for the payment. Being disabled from gainful employment may not be relevant to entitlement to a payment under a Critical Illness policy. Each policy has specific terms and conditions, which must be reviewed very carefully.

Critical Illness policies also typically have a survival period, or waiting period, that specifies a length of time you must wait after receiving a medical diagnosis to collect a critical illness benefit from the insurance company. This period is typically 30 days, but can vary from one policy to another.

If your diagnosed illness is not included on the policy list, your claim may be denied by the insurance company as well. This may give you grounds for a case, and a lawyer should be consulted to determine if you have grounds to proceed with litigation to try and receive the benefits that were denied.

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A note from our long term disability lawyers

Taking a medical leave from work is not an easy decision to make. Concerns about providing for yourself and your family and keeping your job may cause you to want to push through your pain, but this won’t make your problems go away. Stopping work is often the smartest decision for your long term health and well-being, and your disability benefits are there to provide you with financial support until you can return to work.

If you have made the tough decision to stop working and apply for your short term disability or long term disability benefits, you may feel overwhelmed by the process and have questions that your employer and your insurance company are not able or willing to answer. Share is There to see you through and answer your questions.

Our disability law firm knows what you have been going through

We understand that things have not been easy for you over the last little while. Your health has been suffering, you are unable to work, and now your insurance company, who was supposed to be there in your time of need, has decided they will not pay your disability benefits or respect your disability claim. These benefits exist to provide you with the financial support you need so that you can focus on your health and rebuilding your life. It is unfortunate that your insurance company has not lived up to its promise. If your disability claim has been denied, we will fight to get you the benefits you are entitled to. Our disability lawyers have helped thousands of Canadians get their long term disability benefits over the past 35 years, and we can help you too.

Our experienced disability lawyers can fight back on your behalf

Share Lawyers believes that every client who is dealing with a disability claim deserves superior personal service. To achieve that goal, we have developed our team of experienced, compassionate, and caring long term disability lawyers, law clerks, and administrative staff to meet all of your needs. Our team of experienced long term disability, life insurance, employment, and critical illness insurance lawyers have made successful claims against many insurance companies, third-party administrators and employers.

If you are unable to work, your disability benefits should be there to provide you with the financial support you need. While your insurance company may be focused on finding ways to avoid paying your claim, our focus is on what is in your best interest. When Share Lawyers gets involved, you have an entire team of lawyers that are there to support you and to fight for what is yours.

Our disability claim lawyers fight for your disability insurance claim by relying on our many years of experience to apply the best strategic planning and approach in each case, using the latest technology available. Experience matters, and with Share Lawyers, you are in the best hands with 35 years of success on your side.

In this video, we explain the role of a long term disability lawyer and how we can support you when you have been denied your long term disability benefits.

Denied your long term disability claim?

Contact Share Lawyers today and put our experience to work for you. Our 35+ years of experience can help you win your case against Canada Life, Desjardins, Manulife, RBC Insurance, Sun Life, and other insurance companies. We offer free consultations and there are no fees unless you win your case. Join us on Facebook and become a Top Fan for a chance to win each month.