Tuesday, 8 November 2011

Critical Illness Cover a Popular Way to Protect Your Income

By Joe Maldonado


People often consider the two terms of income protection and critical illness cover as completely different from each other. There is no doubt that the apparent different between the two is gigantic as well. This article would highlight the similarity between the critical illness cover and the income protection so that the reader is able to differentiate clearly between these two concepts.

You know very well that the critical illness cover gives you the single payment of the total amount. You get all the money at once on all those critical illnesses which are documented in the policy. You would also find the variety of few critical illnesses covered by one insurance company while many of the missing ones from the other provider. Hence don't fall into the hands of the first provider that you see in the market. You must stretch your legs a bit to compare the critical illnesses covered by at least 5 providers in the market.

On the other hand, the concept of income protection is certainly the protection of your income when you are not doing anything. It is actually the income which is endowed to you each month when you are not performing your job operations due to any medical illness or any other related accidents. This is actually the replacement income and is a fine substitute of your ongoing monthly income in the absence of your job. This is the type of income which is free of any type of government tax. It provides you an inimitable way to enjoy the maximum of the 60% of your previous income before you entangled into some unfortunate accident.

People mostly ask that if they have their registration in the income protection plan then why should they enroll themselves in the critical illness cover or vice versa. The reason is this that people term both of them the same. However there is a very vivid difference between the two insurance policies. In the case of income protection insurance plan, suppose if you are not able to work for the rest of your life, even then the income protection plan would be with you giving you monthly pay till you get back to your job or you die. This is really amazing as the income protection insurance plan would protect you throughout your life if you unfortunately get permanently disable.

The critical illness cover is however different from the income protection insurance plan in a way that after the diagnosis of your critical illness, the critical illness cover would endow you the total amount as stipulated in the agreement at once. You would not be able to get monthly income again even if you unfortunately become completely disable for the rest of your life. Hence the above mentioned examples and facts have shown that the two terms of income protection insurance plan and the critical illness cover insurance plan are absolutely different from one another in terms of their final execution.




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