For many people, surviving a serious illness or injury is only the beginning of the journey. Medicine is always improving, and many illnesses that were once considered grave diagnoses are no longer as serious. People are surviving cancer, heart attacks, and other serious conditions, sometimes with long recovery periods or lasting disabilities. However, not everyone has the financial cushion needed to support themselves while they recuperate.
Many people assume government programs or workplace benefits will provide enough support. In reality, these benefits are often limited in amount, duration, or eligibility. That’s where disability and critical illness insurance come in.
Disability Insurance
Disability insurance is often the foundation of income protection, especially for individuals whose earning ability depends on their ability to work. Disability insurance does exactly what it sounds like: it helps replace a portion of your income if you become disabled and are unable to work. It can be particularly valuable for those in physically demanding jobs or roles with repetitive tasks. While many employees have some level of disability coverage through their workplace health plans, it’s wise to review your policy and determine whether that coverage is sufficient for your needs.
There are a few details to explore when assessing your coverage:
- What is the coverage amount, and how long does it last?
- What is the waiting period before benefits begin?
- What is the maximum benefit period?
- What are the eligibility requirements? What qualifies as a disability? Are there exclusions?
- Is the definition of disability an inability to perform your “own occupation” or“any occupation”?
- Are benefits taxable?
- Are benefits adjusted for inflation?
Critical Illness (CI) Insurance
Critical illness insurance provides coverage if a person is diagnosed with a serious illness such as cancer, heart attack, stroke, or heart disease. It is designed to complement disability coverage by providing flexibility at a time when expenses and life priorities may shift to fighting or healing, which can require significant time.CI insurance provides a one-time lump sum benefit that can be used however you choose: experimental treatments, extended time off work to focus on recovery, or a relaxing trip with family.
As more people are diagnosed with and surviving these conditions, critical illness insurance has become increasingly relevant.
There are a few important details you should explore when assessing CI coverage:
- CI policies are definition specific. What illnesses are covered?
- Is there a survival period before benefits are paid (often 30 days)?
- Does the policy pay partial benefits for early-stage or less severe diagnoses?
Planning for the unexpected isn’t about assuming the worst, but about being prepared. Reviewing your coverage and exploring policies can provide clarity and confidence, no matter what the future holds.
If you’d like to review your current coverage or explore additional protection, contact KLT Wealth Management
