Critical Illness, Disability, and other income replacement plans
Many people know about insurance that covers health care costs such as prescription drug
costs and dental bills, but are you as familiar with coverage that helps protect your
income? The two most common types of income replacement products are Disability and
Critical Illness coverage.
Disability Insurance pays benefits if you are sick or injured and unable to work. It can
help protect an individual’s or family’s financial security by
“continuing” a substantial portion of income that can be used for normal daily
expenses. It’s usually available from two major sources:
- Group plans- They offer great basic coverage, but may
replace only 60% or less of your income. Self-employed and contract workers may not be
eligible for a group plan.
- A private policy you own personally can be a solution if
you don’t have access to employer benefits, or when those programs do not adequately
meet your needs.
Critical Illness coverage provides a lump sum benefit in
the event you are diagnosed with a covered condition such as a heart attack, bypass
surgery or cancer. This financial benefit can be used at your discretion for any special
needs you may have, such as specialized medical treatments or modifications to your home
and automobile. You might choose to use these funds to hire a home health care provider
during your recovery, or this benefit may enable a family member to take a leave of
absence to assist you. This flexibility provides the best coverage for the high costs and
treatments associated with a critical illness.
There are other types of coverage such as Business Overhead Expense coverage that may be
beneficial to business owners.
For more information on these types of coverage, contact us.
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