What Is The Difference Between Critical Illness Insurance And Income Protection Insurance?

  1. 0 POINTS
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    David RacichPRO
    Fountain Hills, Arizona
    Critical illness insurance covers the expenditures of a major medical event. The morbidity statistics increase significantly as we age, so covering the probability of critical illness is important.  Income protection insurance protects your paycheck by generating income after the elimination period to replace part of your earnings due to a disability.
     
    Answered on June 7, 2013
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  2. 4470 POINTS
    Brandon Roberts
    Owner, The Insurance Pro Blog,
    Income protection, or long term disability insurance usually is designed to pay a monthly benefit to replace the income lost when someone becomes too sick or injured to work.

    Critical illness pays a lump sum cash benefit to cover the immediate costs associated with a major illness.

    Disability insurance is designed to prevent loss of income from not working while critical illness is designed to handle only short term major cash needs to address the medical emergency.
    Answered on August 30, 2013
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