Difference between Critical Illness and Disability Insurance

What Is Disability Insurance Coverage?

What Is Critical Illness Insurance Coverage?

What Are the Difference Between Disability Insurance & Critical Illness Insurance

Points of Comparison

Disability Insurance

Critical Illness Insurance


Disability insurance will pay you a percentage of your income, up to a maximum specified amount, in circumstances where you cannot work.

In this plan, you will receive a lump sum benefit amount if you are diagnosed with a critical illness that is covered under your policy.

Waiting Period

The monthly pay-out will begin after a chosen waiting period of 30, 90, or 120 days as per your plan. This is the period where you remain disabled and unable to work.

The pay-out will be given in a lump sum amount after a period of 30 days for the time you have survived after being diagnosed with a critical illness.

Types of Coverage

Disability insurance can cover partial as well as total disability as per your plan. It may include partial or complete blindness, paralysis, broken arms or legs due to major accidents, etc. The coverage begins only when your working capability is harmed due to the disability.

It covers a wide range of illnesses, but you will only receive benefits for those that are listed in your policy documents. In addition, the benefit is offered regardless of whether you can continue to work.


Disability insurance is designed to offer coverage to employed people. The amount of payment you receive will be based on your income or salary.

You can opt for it irrespective of employability as the benefits depend on the plan you choose and the type of illness you are diagnosed with.

What Are the Inclusions in Disability Coverage?

What Are the Exclusions of Disability Insurance Coverage?

What Are the Inclusions in Critical Illness Coverage?

What Are the Exclusions of Critical Insurance Coverage?

What Factors Affect the Cost of Insurance?

FAQs about Disability Vs Critical Illness Insurance

What are the exclusions in disability insurance?


Some of the common exclusions in a disability insurance plan are as follows:

  • Disability or injuries caused by war, aviation accidents, pregnancy-related disability, suicide attempt, etc.
  • A few specified pre-existing health conditions leading to a disability may be excluded.
  • Loss of income due to cancelled professional license or certification.
  • Disability due to imprisonment will not be included under the benefits.

What is the waiting period for disability insurance?

The waiting period refers to the duration during which you have to be disabled in order to start receiving benefits. The waiting period may vary from 30, 90, to 120 days, depending on the plan you choose.

Why is it important to purchase both disability and critical illness insurance?

Both disability and critical illness insurance plans offer coverage under separate conditions. While you can use disability benefits as a substitute for your income while you recover from that situation, your critical illness benefits will help you reduce high healthcare expenses when required.