Do Your Employees Need Critical Illness Coverage?

When your employee makes a decision about insurance benefits, it’s usually based on a perceived need and coverage availability. Employees might not understand the need for critical illness insurance the way they understand the need for health and life insurance.

  • Health insurance is the most wanted employee benefit. Most people understand that health insurance is the best way to avoid a financial disaster due to high medical bills. Census Bureau 2018 statistics show that 91.5% of Americans had some form of health insurance coverage. Of those covered, 55.1% had employer-sponsored coverage.
  • Insurance consumers also understand why they need life insurance. If the worst happens, it’s an economical way to provide a financial resource for their loved ones. A 2018 Life Insurance Research and Marketing Association (LIMRA) study found that 59% of Americans had life insurance policies, an increase from previous years. Twenty-two percent were insured through group coverage policies.

Do Your Employees Understand Critical Illness Insurance?

With Critical Illness insurance, lack of knowledge is a factor that likely minimizes demand. Some people don’t understand what the coverage is or how it works. When CNBC surveyed 285 insurance consumers, 36% believed they had critical illness coverage. Less than 5% actually had the coverage. In another study, 7% of the patients had critical illness insurance but only 4% of their policies covered cancer.

Critical Illness Insurance Basics

Critical illness coverage supplements your employees’ health insurance. It pays a predetermined cash benefit when they have a medical condition that’s covered by the policy. The insured uses the benefit however they choose, often for household bills, insurance deductibles, lost wages, and other expenses incurred due to illness.

The insurance covers these and other illnesses.

  • Cancer
  • Heart Attack
  • Stroke
  • Alzheimer’s Disease
  • Paralysis
  • Deafness

Coverage may vary depending on the insurance company and the policy type. Some policies cover a standard list of medical conditions. Others offer coverage for a single illness such as Cancer. The premiums are relatively low. Once the insurance company approves the application, the coverage is guaranteed renewable, often up to age 70.

Critical Illness Coverage Isn’t For Everyone

Once your employees understand how critical illness coverage works, some will want it and others won’t. Most employees know that they or a family member will get sick eventually. While they see the need for health insurance, not everyone will anticipate the need for critical illness coverage. Others will see it as a necessary benefit. That makes it an excellent coverage to offer as a voluntary employee-paid benefit.

Contact Health Consultants Group

If you’d like to know more about critical illness coverage, please give us a call at (800) 367-2482.