A critical illness is something that can change a person’s life forever. In many cases, those who are diagnosed go on to make a full recovery and continue to work but there are plenty of times when this is not the case and it can be hard to ensure that income is stable at a time like that. It is important not to worry about finances and many companies have now recognised the benefits of offering group critical illness insurance as part of their employee benefits alongside others such as group income protection. Critical illness insurance will pay out a lump sum which they can use to see them through the difficult times.
A group critical illness insurance policy is something that is arranged by the company and the employee never needs to worry about organising it, although there are critical illness policies which can be purchased by individuals as an alternative. The group policy also ensures that companies have the right systems in place to support staff when they need it the most.
The monies can be used to help with the costs of medical treatment, changes to the home if they are needed or simply to provide an income during periods out of work. There are also options which are added to some policies which help the employee to make the transition back to work once they have begun to recover.
Illnesses that may be covered include heart attacks, cancer and strokes.
The illnesses which are covered on the policy will be specified and most major illnesses are covered by all policies although there may be some differences. A basic list may contain up to 12 illnesses, while there are also comprehensive plans which will cover around 20 more conditions. It is a good idea to check the small print to ensure that you know what you are covered for. These illnesses have the ability to change lives completely and they can also ensure that people are unable to earn money by working.
Government benefits often do not cover the expenses for living, particularly if other members of the family are working as this is taken into consideration. The lump sum provided is tax free, so you do not have to worry about the government taking a share. The amount of cover given is often 4 times the annual salary but this is the maximum that is paid out. This is also often capped at £500,000.
Policies can be organised by the employer to cover specific groups of employees, such as canteen staff, laboratory staff or sales staff. Each group is classified by risk and age and premiums are set accordingly.
This is a good policy for an employer to have as it shows consideration for employees. Companies that offer these kinds of benefits will find it much easier to keep their staff in the long term. Employees are now looking for employers that offer benefits as well as a salary and this is just one option.
