A critical illness cover is a type of insurance in which you receive a lump sum cash payment when you are diagnosed with a specific disease listed in the contract between you and insurance company. The group critical illness cover can be treated as another Employee Benefit as in this case you may protect your entire team. Supporting a member of staff who tries to overcome a severe disease can strengthen your relations, help with employee loyalty & retention and, finally, provide your team with an additional sense of security.
Group Critical Illness Cover – What Diseases Does it Cover?
There are many different schemes, but, in general, an employee can receive a payment after surviving covered critical illness for at least 14 days. You can include members’ spouses & children in the insurance. If you wonder which health condition is a “critical” one, the answer is that it depends which scheme you’ve chosen in a particular insurance company.
Example of critical illnesses:
- Heart Attack,
- Parkinson’s Disease,
- Kidney Failure,
- Motor Neuron Disease.
An insurance company may include different diseases depending on the chosen scheme. Extra coverage may include conditions such as:
- Paralysis of limb,
- Permanent disability,
- Liver failure,
- Respiratory failure,
among many others.
To provide some statistics, ONS estimated that 303,135 cancers were registered in the UK in 2016. Regarding the stroke, more than 100,000 people suffer from it in the UK every year (stroke.org.uk). Finally, around 61,000 people receive treatment for kidney failure at this moment (kidneycareuk).
What Are the Funding Options?
Like in the case of Dental Care Cover, there are three options to fund group critical illness insurance.
1. As an employer, you can fully fund this insurance for your staff and, optionally, their spouses and children.
2. You can partially fund the cover. The rest of the costs will be passed on to your employees.
3. The cost of insurance is entirely passed on to your employees. As an employer, you only collect the payments for the cover.
What About Pre-Existing Conditions?
It again depends on the insurance company. However, our advisor can propose offers which allow certain pre-conditions. For instance, we work with a business which has the following policy:
If your employees suffer from a disease listed as critical illness and they had pre-conditions that were unrelated
to this particular disease, they can receive a payment.
If your employees survived a critical illness in the past, they wouldn’t be able to claim for the same disease in the future. Cancer may be an exception. More specifically, if you employee is diagnosed with second cancer, unrelated to the first one, the company will accept the claim.
Group Critical Illness Insurance – Summary
There are many options when it comes to choosing the right group critical illness cover. Our experienced advisors can help you select the best offer. We have access to the whole of the market which means that our advice will be entirely independent of any institution or insurance company.