It can almost be impossible to get disability insurance, if you are in a high risk job such as a lumberjack while it would be extremely expensive; up to 10 percent of your annual income, if you are fortunate to get an insurance company that will offer you a plan. As a result, how will you design a particular plan that will cover your risks of injury and illness and at the same time offer protection to your lifestyle and family? Creating a split plan with a critical illness insurance policy and injury only disability insurance for major life altering illnesses is one solution.
A great way of getting a type of disability income insurance is to use a critical illness insurance policy to replace lost income. Note that a critical illness insurance policy is in no way a disability policy and it does not cover things like fibromyalgia, pneumonia and chronic cough among others. Disability insurance policy only covers those major injuries and illnesses that can alter your life and keep you out of the job you are doing for many months, if not years. These are stroke, cancer, by-pass surgery, heart attack, MS, spinal damage, Parkinson’s, organ failure and so on.
In a situation where a common disability policy in addition to illness protection comes with a 90 days waiting moment in time, which indicates that your benefits will only begin after 90 days of paying your bills, what are the kinds of illnesses that would keep you off work for that long? However, the most universal kinds would be those illnesses that are incorporated in the list of critical illness insurance. Moreover, critical illness insurance will only pay out at the end of 30 days and not 90 in addition to the fact that all benefits are paid out in lump sum devoid of tax.
A plan that covers two years of gross income is substantial insurance coverage for most people in this situation.
Luckily, a critical illness insurance policy is more often than not less expensive compared to illness protection on a disability insurance policy. You can feel confident that you are insured from things like a car accident, fall, brain injury, cancer and heart diseases among others, taking the premium savings on the injury only disability insurance together with a lower cost critical illness insurance policy.
