Posted: admin | Mar 22, 2022 |1 min read

Case Study: Disability or Critical Illness Insurance

By Brandi Dickson

How do I know if I should use Disability coverage or Critical Illness Insurance?

Meet Matt & Erica,

  • Matt is a 35-year-old male, non-smoker.
  • he is the sole earner for the family
  • he currently has life insurance so the family is protected upon his death.
  • Matts’s employer does not cover long-term disability under the group insurance plan.
  • Erica is a 32-year-old female, non-smoker
  • She stays home and takes care of their 2 children both under the age of 5

Matt & Erica are worried about what happens if either of them becomes sick or injured. How are they going to protect their family in this event?


Matt & Erica meet with Northfront insurance and discuss the options available to them that will still fit in their budget. Our advisors come up with the most appropriate customized plan for this couple

For Matt Northfront agents recommend a disability policy, suggesting to him that he purchase the top allowable amount of disability coverage for his income at this time as Matt has no other coverage to supplement income if he is to become injured or sick, Matt’s plan will also need to be sure there is an option to cover him for partial disability, benefits paid until age 65, and covered for regular occupation until age 65.

For Erica Northfront agents recommend a Critical illness policy, Erica has no income so does not qualify for disability policy. however, what happens if Erica is to become sick and is not able to take care of the kids or requires funds to get treatment for an illness, with a critical illness policy Erica, will receive a lump sum tax-free payment after the 30 day survival period, this payment will help if they need to hire a full-time care worker for the kids or pay for added medical expenses. Erica’s plan needs to cover all major critical illnesses there should be no less than 25 items covered under her plan.