If you plan on offering critical illness coverage as a benefit to your employees it's important that you be educated about it yourself to better understand how it benefits your employees and your organization as a whole. With that said, here are some common questions employers have about critical illness insurance.
How Does It Work?
On its face, critical illness coverage is actually fairly simple, if you have a condition that is approved by your insurance carrier as a critical illness you receive benefits that can be used to cover the cost of treatment, recovery, and any other costs associated with your illness. Benefits are generally delivered as a lump-sum payment distributed to the policyholder.
Lump-sum payments are less restricting and allow your employee to use the money the way they see fit, whether it's for the cost of treatment or to make up for lost income if they are unable to return to work right away. This also cuts down on unnecessary micromanagement for both you and the insurance provider.
What Is A "Critical Illness"?
What exactly constitutes a critical illness will vary from provider to provider, but some of the most common illnesses covered under the critical illness umbrella are:
- Heart attacks
- Some types of cancer
- Organ transplants
That's far from a complete list, but it gives you some idea of the types of conditions covered by this insurance.
What Kind Of Expenses Are Covered?
Essentially, everything. Payment is delivered as a lump-sum and there is no micromanaging of funds. Your employee will receive the payment and be able to use it for anything from the cost of treatment to replacing their lost income. Critical illness insurance was designed to cover all of the unforeseen and unexpected costs associated with major illness that regular health insurance doesn't cover.
Will My Employees Appreciate This?
Many Americans don't have enough in savings to cover an unexpected car repair, let alone thousands and thousands of dollars worth of medical bills. A critical illness can occur to anyone at any time, and it's impossible to predict. Critical illness insurance can provide your employees with peace of mind, knowing that even if the worst comes to pass they will have the financial resources to weather-the-storm.
Is It Cost-effective?
Critical illness plans are generally offered on a voluntary basis, making them an extremely cost effective way to provide a unique and valuable benefit to your employees. This will also depend somewhat on the insurance provider you choose, as some are more efficient than others at underwriting and claims processing. Performance is important when it comes to voluntary benefits and it pays to do your research before settling on a provider.
Offering your employees a unique and valuable benefits package gives you a competitive edge when it comes to attracting and retaining talent. Please contact us at Summerlin-Roberts today to learn more about offering voluntary critical illness insurance to your employees.