and Time to Talk about Disability Insurance!
May is Disability Insurance Awareness Month, and I want to share some information to help you be more knowledgeable about disability insurance, critical illness insurance, and what the differences and similarities are.
This is such an important subject for me because of my personal history. Both disability insurance and critical illness insurance have helped me make ends meet during my health crises, so I know firsthand how important it is to have them.
Many people can get disability insurance through their jobs or through the state they live in, but did you know that disability insurance may not take care of all your expenses? That’s why it’s important to know what disability insurance covers, where it falls short, and how critical illness insurance can fill in the gaps.
Let’s take a look.
Short-Term Disability (STD) Insurance vs. Critical Illness (CI) Insurance
| Feature | Short-Term Disability Insurance | Critical Illness Insurance |
| Purpose | Replaces a portion of your income if you’re temporarily unable to work due to illness or injury. | Provides a lump-sum payment upon diagnosis of a covered serious illness. |
| Benefit Type | Weekly or monthly income (typically 50–70% of salary). | One-time lump sum payment. |
| Triggering Event | Inability to work due to temporary disability (e.g., surgery recovery, pregnancy, injury). | Diagnosis of a covered critical illness (e.g., cancer, heart attack, stroke). |
| Coverage Duration | Short-term, usually 3–6 months (up to a year in some cases). | Not time-based — benefit is paid once diagnosis is confirmed. |
| Waiting Period (Elimination) | Typically 0 to 14 days after disability begins. | Often 30 days from diagnosis (varies by policy). |
| Use of Benefits | Replaces lost wages so you can cover living expenses during recovery. | Can be used for any purpose — medical bills, travel, mortgage, etc. |
| Underwriting Requirements | May require health questions or exams depending on the carrier/group. | Usually has simplified or guaranteed issue options available. |
| Cost | Typically higher for high-income earners or risky jobs. | Premium depends on age, health, and coverage amount. |
| Common Buyers | Employees, self-employed individuals. | Anyone wanting financial protection from major health events. |
You should get STD Insurance if:
- You depend on your paycheck and want income protection for short absences due to illness, injury, or childbirth.
- You don’t have a good sick leave or paid time off (PTO) policy at work.
You should get Critical Illness Insurance if:
- You want help with out-of-pocket expenses not covered by health insurance (deductibles, travel, home modifications).
- You have a family history of serious conditions like heart disease, cancer, or stroke.
Can You Have Both? Absolutely!
Many people have both to cover different financial gaps. STD helps with ongoing income if you’re unable to work, while CI provides an extra lump sum for medical or recovery costs after a major diagnosis.
When I had my stroke, I was lucky enough to have both disability insurance and critical illness insurance. Disability helped cover the rent, but it didn’t help much with life’s other expenses. Critical Insurance stepped in to cover those expenses, and to make my recovery a lot less stressful. I didn’t have to worry about gas to get back and forth to appointments, health insurance copays, medication copays, utility bills, and so on. I could focus on getting better, and not on how to pay for it.
I would love to give you more information to help you make the best decision for you and your family. Click here to make an appointment to talk with me!
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