A couple sits together on their couch discussing various life insurance plans. They review important documents while a laptop is open on the coffee table, creating a warm atmosphere.

Disability insurance or critical illness insurance: how to decide?

Both offer financial coverage in case of major health problems – but they work in very different ways.

January 21st, 2026

What would you do if an accident or critical illness compromised your ability to meet your financial obligations and provide for the needs of the people who depend on you? Two main types of insurance have been developed to cover this risk: disability insurance and critical illness insurance. As opposed to life insurance, which is designed to deal with the financial consequences of a death, these two products are known as “living benefits” solutions.

Here's an overview.

Disability insurance or critical illness insurance - how to choose in 5 points
when are the benefits paid?
what are the terms and conditions?
how long do the benefits last?
how much are we talking about?
at a glance
talk to your advisor to see if you should consider either one or both of these solutions

The following sources were used to prepare this article:

Autorité des marchés financiers, « Disability insurance ».

Desjardins, « Assurance maladies graves » ; « Disability Insurance ».

Government of Canada, « Disability Insurance ».

Investopedia, « Critical Illness Insurance: What Is It? Who Needs It? »