Critical Illness (CI) insurance appeals to people who want to ensure that their lifestyle, asset base, and business won't erode in the event of a critical illness. It's a natural complement to other insurance products in an employer's benefits package -- the "missing piece" that's designed to cover the nebulous territory where Health insurance leaves off but Life insurance doesn't yet pick up. For example, not too long ago, Life insurance met most people's need for critical illness protection, because many people died when stricken with a major disease. However, because more people today are surviving longer, but living with a critical illness, CI coverage can provide benefits to help with the increased cost of caring for them over an extended period.
This differs from Disability insurance, which pays a monthly income to help the insured (not the spouse or caregiver) replace a portion of their lost salary. However, this is often inadequate for workers who face immediate needs after the onset of a critical illness. In addition, not everyone has access to Disability coverage. On the Medical insurance side, today's stricter managed-care guidelines, rising deductibles and co-payments, and uncovered expenses mean that a Health policy alone won't cover all expenses associated with a serious illness. With treatment costs in the tens of thousands of dollars, even a 10% co-pay can be a significant hit on a family's finances -- not to mention all the indirect expenses.
If you don't include Critical Illness insurance in your benefit program, give us a call. We can help you assess whether this is a product that your employees would appreciate.