For the first comparison, we'll look at critical illness insurance compared with life insurance.
As a quick note, a life insurance policy is a contract between you and your insurer. The insurance company agrees to pay a specified amount to the person or people chosen as beneficiaries in the event of the insured person's death.
We'll discuss what these insurance plans cover, their benefits, and who is eligible for them.
Now, we'll compare critical illness and disability insurance. You may have wondered if they are the same, as they do have some similarities.
In case you're wondering, generally, disability insurance is a type of coverage that will help replace a portion of your income if a disabling injury or illness prevents you from working in a covered occupation.
At TD Insurance, we offer TD Accident Disability Insurance, which provides a benefit ranging from $500 to $1,500 per month for up to 24 months if you become disabled as a result of an eligible accidental injury.
Lastly, let's look into the comparison between critical illness insurance and critical accident insurance, yet another pair of insurance types that are unique to one another.
A critical accident insurance plan may pay benefits that can be used to help with lifestyle changes and recovery expenses in the event of a critical accident that causes a covered loss.
Is critical illness coverage better than life insurance?
They can't be compared, as they both serve unique purposes. Life insurance pays a death benefit to your beneficiary upon your death, and critical illness insurance pays a lump-sum benefit to you upon suffering a critical illness. With critical illness insurance, you can choose to use the benefit however you wish, such as to help pay medical bills.
How does critical illness insurance payout?
Generally, if you are diagnosed with a covered critical illness and survive the illness for a certain period of time (the waiting period varies with the type of illness and the insurer's policy) a one-time, lump sum will be paid out to you or the registered claimant.
1Different insurers can have different eligibility criteria. So, it is a good idea to check with your insurer for full details on eligibility.
TD Critical Illness Recovery Plan insurance is underwritten by TD Life Insurance Company. For defined terms, limitations, and exclusions, refer to the Insurance Policy for full details.
The content on this page is for general information purposes only and does not constitute legal, financial or insurance advice. Speak to an insurance advisor regarding your specific situation. The information contained herein, is subject to change without notice.