Income protection insurance and Critical illness insurance are insurance policies that protect you financially. It helps when people suddenly face unexpected events, such as you can not earning money, or it also affects their work. In addition, Income protection insurance gives regular insurance until the patient cannot return his work.
Main Difference
Critical illness insurance provides a chunk with a sum payment upon diagnosis of a covered illness. Let us discuss the main differences between Income protection and Critical illness insurance in detail.
Income Protection Insurance
Income protection insurance is the type of insurance policy that protects you financially. It also provides regular income until the person cannot work. In this policy, they pay out the percentage of your salary or earning until you cannot return to work.
In addition, Income protection insurance is also available for those employed, self-employed, or with a business. Moreover, it takes time before payment starts, and demanded a medical examination before the policy is approved.
Critical Illness Insurance
Critical illness insurance gives a chunk sum payment if the individual is diagnosed with a severe illness such as cancer, heart attack, and more. The policy is available for the specific disease, and the payout amount is already decided at purchase.
In addition, the money from this policy can be used to cover medical expenses and modify your home. Critical illness insurance support helps you, under challenging times, maintain your living standard. Furthermore, it is noted that carefully view the policy term and conditions before purchasing the policy.
Key Differences
- Income protection gives you continued financial support until you cannot work. Conversely, Critical illness insurance provides a one-time lump sum payment if the patient is diagnosed with a specific illness.
- Income protection insurance is available for those employed or with a business, whereas Critical illness insurance is available for anyone who meets the eligibility criteria.
- Income protection insurance has to wait for a per the iod before the payment start, while Critical illness insurance does not have a pending period before the paymenstartsrt.
- Income protection insurance covers many conditions that help prevent people from working. Conversely, Critical illness insurance covers specific diseases mentioned in the list.
- Income protection insurance demands a medical before the policy is approved, whereas Critical illness insurance does not require any medical examination.
Comparison Chart
| Features | Income protection insurance | Critical illness insurance |
| Taxation | Advantages are taxable as income | Payout is tax-free |
| Complementary policies | It can be suited by other insurance policies, such as life insurance, and the person who faces the disability | Can be served in addition to health insurance |
| Medical examination | Demand medical examination before policy approved | Not demand any medical examination |
| Premiums | higher because they give payment until when the patient does not recover completely | Lower due to one-time payment |
Conclusion
In a nutshell, we can say that IPI and CII are utterly different. They show deviation in their examination, taxation, and complementary policies.
