Skip to main content
Menu File a Claim Login
American-Fidelity-logo
Menu
Menu File a Claim Login
American-Fidelity-logo
American Fidelity Logo American Fidelity Logo
  1. Strategy
      •  
      • Employee Benefits
      • Communication and Education
      • Enrollment and Admin
      • HR Assistance
      • Tax Savings
      • Compliance Updates
      •  
  2. Products
      •  
      • Benefits
      • Dependent Verification
      • HR Technology
      • Reimbursement Accounts
      • Retirement Savings
      • Section 125
      •  
  3. Why Us
      •  
      • For Education
      • For the Public Sector
      • For Automotive
      • Account Managers
      • Customer Testimonials
      •  
  4. Blog
      •  
      • Benefits Strategy
      • Reimbursement Accounts
      • Supplemental Benefits
      • Customer Stories
      • Compliance Updates
      •  
  5. Support
      •  
      • COVID-19
      • Employer Assistance
      • Videos
      • Contact Us
      •  
  6. Claims
      •  
      •  
Login
 
 
American Fidelity Logo

Disability insurance vs. critical illness insurance: Which is better for you?

 

May 10, 2022

2 minute read

Category: Supplemental Benefits

Learn more about this blog article

If you're trying to decide between disability insurance and critical illness insurance, you may want to consider getting both. They don't offer the same kind of coverage, so choosing one could leave you unprotected in other areas of your life. Here's what you need to know about the differences between the two types of insurance.

What does disability insurance cover?

Disability insurance is designed to financially help you when you're unable to work due to a covered injury or illness. The benefit provides a percentage of your income for a set period of time, allowing you to focus on getting back on your feet without extra financial stress.

To receive your benefit, you may need to provide proof that you can't work and need to "re-prove" this status upon request from your insurance provider. If you improve to the point that you no longer meet the definition of disabled through your disability insurance policy, your payments will end.

Learn more about disability insurance 

What does critical illness insurance offer?

In contrast to disability insurance, critical illness insurance does not cover injuries. Instead, it provides a lump sum payment if you're diagnosed with any illnesses covered on your policy. The diagnosis of illness is the most important factor here, as opposed to whether it keeps you from working. Once the illness has been diagnosed, and you've received your benefit payment from the policy, you won't generally be asked to prove whether you can or cannot work.

Additionally, critical illness insurance isn't based on your income. The maximum benefit amount you'll receive for your illness is detailed in your policy document. Some conditions will provide a bigger benefit than others, and before you choose a policy, you'll want to see what the benefit amounts and covered illnesses are. For example, while a family history of heart disease doesn’t guarantee you will also get it, it’s worth considering if it’s covered in your policy.

Learn more about critical illness insurance 

So, what's the bottom line?

The bottom line when comparing disability insurance and critical illness insurance is that one isn't a replacement for the other. One option also isn't necessarily better than the other. They provide different types of coverage and having both may give you more protection and additional peace of mind.

 

This blog is up to date as of May 2022 and has not been updated for changes in the law, administration or current events.

 
  • Tags:
  • Critical Illness
  • Disability

Share:

 

Related Supplemental Benefits Articles

 

Short- vs. long-term disability insurance: How it works

October 28, 2022

4 minute read

Both plans are designed to help protect you financially, however, depending on your situation, one may be more beneficial than the other. Learn more.

  • Tags:
  • Disability

Heart-healthy tips for American Heart Month

February 15, 2022

With heart diseases being one of the leading causes of death in the U.S., it’s important to learn what steps you can take to help prevent them.

  • Tags:
  • General
  • Wellness
  • Critical Illness
  • Disability
  • Gap
  • Education

Health Insurance and Pregnancy: What You Need to Know

May 12, 2021

4 minute read

Understanding your coverage can help you better prepare for the claims process before and after childbirth. Here are some tips to help.

  • Tags:
  • Life
  • Disability

 

This information is intended to be educational. It is general in nature and should not be considered financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation. These products may contain limitations, exclusions and waiting periods. Critical illness insurance is inappropriate for people who are eligible for Medicaid coverage.

ESB-9370-0522

American Fidelity Assurance Company
americanfidelity.com

https://americanfidelity.com/blog/supplemental/disability-vs-critical-illness/

Site Map

About Us

News Center

Careers

Contact Us

© 2022 American Fidelity Assurance Company

  • Privacy Notices |
  • Report Fraud |
  • Terms of Service |
  • Licensing |
  • Special Notices |
  • Cameron Enterprises

This information is intended to be educational. It is general in nature and should not be considered financial, legal or tax advice. Consult an attorney or a tax professional regarding your specific situation. These products may contain limitations, exclusions and waiting periods. Critical illness insurance is inappropriate for people who are eligible for Medicaid coverage.

ESB-9370-0522

  • File a Claim
    Login
  • Home
  • Benefits Strategy
    • Employee Benefits
    • Communication and Education
    • Enrollment and Admin
    • HR Assistance
    • Tax Savings
    • Compliance Updates
  • Products
    • Benefits
    • Dependent Verification
    • HR Technology
    • Reimbursement Accounts
    • Retirement Savings
    • Section 125
  • Why Us
    • For Education
    • For the Public Sector
    • For Automotive
    • Account Managers
    • Customer Testimonials
  • Blog
    • Benefits Strategy
    • Reimbursement Accounts
    • Supplemental Benefits
    • Customer Stories
    • Compliance Updates
  • Support
    • COVID-19
    • Employer Assistance
    • Videos
    • Contact Us
  • Claims
  • Careers
    • Corporate Careers
    • Sales Careers
  • About Us
  • Site Map

Popular Topics:
  • Register for an Account
  • Forms
  • Unused FSA Funds
  • HCFSA Eligible Expenses
  • Carryovers, grace periods and runoff periods
  • HSA Eligible Expenses
  • HSA Tax Forms
  • Disability Tax Forms