The Difference Between Critical Illness & Long-Term Disability Coverage in Nova Scotia

There are many types of insurance coverages in the marketplace, and it can be overwhelming to decide which coverage is right for you.  There’s Life, Health, Home, Auto, Dental & Liability insurance just to name a few but only two specific types of coverage options can pay yourself in the event of an illness or disability, Critical Illness and Long-Term Disability insurance.  Let’s take a deeper dive into these two products.

What is Critical Illness Insurance?

Critical Illness is designed to help you recover financially from an illness.  If you survive 30 days after being diagnosed the one-time tax-free lump sum payment will be made directly to you to help with any treatment or missed time at work.  How often do you hear stories about loved ones getting diagnosed with Cancer and having to miss time at work to recover or withdraw funds from their RRSP to help with the ongoing medical cost’s. Unfortunately, these stories are becoming far too common.  This is where Critical Illness insurance can help.  Let’s look at a few of the illnesses that are typically covered in a standard policy.

  • Benign brain tumor
  • Stroke
  • Dementia, including Alzheimer’s disease
  • Heart attack
  • Multiple Sclerosis
  • Motor neuron disease
  • Acquired brain injury
  • Kidney failure
  • Heart valve replacement or repair
  • Loss of limbs

What is Long Term Disability?

A long-term disability is not just a remote possibility.  At anytime an illness could prevent you from working for months or even years.  If you were unable to go to work tomorrow, how would you maintain your current lifestyle?  Your greatest asset is the ability to earn an income and it must be protected.  Disability insurance pays a monthly income based on a formula designed by the insurance provider if you are unable to work due to an injury or illness. A standard LTD policy would have a 120-waiting period with a 66.7% formula of monthly pre taxable earnings. 

Which Product Should I Choose?

At McIver Insurance we may be bias, but the simple answer here is both.  Critical illness insurance bridge’s that gap between long-term disability waiting periods and other government benefits such as unemployment insurance.  Most critical illness plans pay out after 30 days but LTD does not start until 120 days.  With the lump sum payment from critical illness insurance, you greatly reduce the worry for the short term and if you are unable to return to work then Long-Term Disability insurance will provide you that steady income stream to continue to live that lifestyle you are accustomed to.

How Much Does It Cost?

When discussing costs for the above products a variety of factors are involved.  Quotes are determined based on your age, sex, smoking status, coverage amount, duration, job occupation and health history.  If you are looking for personalized advice and some of the best insurance policies in Halifax, Nova Scotia you can trust McIver Insurance for dependable customized insurance products, book a call today to get your free personalized quote.