Critical Illness Insurance: Do Employees Require It?

Critical Illness Insurance: Do Employees Require It?PolicybazaarAverage Rating / 5 ( reviews)
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The definition of a good critical illness insurance policy starts by understanding that this type of insurance is designed to complement one’s medical as well as disability insurance and not replace it.

There are many employers in today’s age who are shifting to medical plans with higher deductibles, and these are those who are asking the wise question – “do employees need critical illness insurance cover?” The answer should be clear, especially considering the increased responsibilities that the employees face nowadays in terms of deductibles and medical copays.

Many business enterprises these days are finding that the critical illness insurance helps in offering their employees with affordable protection from any financial hardships that may follow due to a critical illness. Most of the covered individuals (employees) receive a lump sum amount upon the diagnosis (first or second) of a covered illness or covered condition such as stroke, heart attack, cancer, among many others. The critical illness insurance benefits received from such protection can be used by the employee in any manner as he or she wishes. Be it for paying medical deductibles and copays, covering their day to day expenses for groceries or utilities, or even covering debts such as mortgage payments, any financial need can be met with the amount received.

Critical Illness Insurance: An Affordable Answer

A fair and good definition of critical illness insurance also takes into consideration that those who actually recover from critical illnesses can be faced with quite a lot of financial hardship in the coming times as they recover. As there is a recent shift in the health insurance market that causes the individuals to be more responsible in terms of higher copays and deductibles, the employees of your business might be more vulnerable than before.

Critical Illness Insurance: Complement to Other Insurances

Most of the people out there are pretty familiar with the health insurance policies and disability insurance policies. Critical illness insurance might be a budget-friendly way to actually help in bridging the gap between such insurance coverage types that are more traditional.

The disability insurance plan offers a replacement for the monthly income to replace only a part of the lost salary. Generally, it tends to fall short for those people that are met with immediate funds requirements due to the critical illness that strikes them. There are many people that are also not equipped with sufficient savings in their emergency funds to help them cope with such cash requirements.

 Whereas the health insurance policy pays for any medical care that is required, but it can leave the employees in debt considering the high deductibles and copays in today’s age.

The Usage of Critical Illness Insurance Cover

Good coverage in terms of critical illness insurance indicates that the critical illness insurance benefits are paid irrespective of any other type of life insurance. Critical illness insurance offers the policyholder a lump sum amount that can be used by the policyholder in any manner as they deem fit. So this helps in ensuring that your employees are able to focus on their recoveries and not worry about their finances.

Some of the medical and every day expenses for which the policyholder can use the critical illness insurance benefits are as follows:

Medical Expenses:

  1. Medical deductibles and copays
  2. Costs of private nursing
  3. Home refitting or medical equipment
  4. The commute to and from the medical center

Everyday Expenses:

  1. Rent or Mortgage
  2. Utility Bills
  3. Household Debt
  4. Childcare
  5. Groceries

Things Covered Under Critical Illness Insurance

While most of the critical illness insurance providers offer coverage for stroke, cancer, heart attacks, among other illnesses, they can vary in a wide manner in terms of the other types of illnesses that they cover under their policies, along with the riders they offer and the optional coverage provided, and the amounts they will pay out as the lump sum.

It is good to check with your critical illness insurance for the types of illnesses they cover under their policies. Ideally, one should go through the terms and conditions thoroughly before signing up for any contract to have a fair idea of the types of illnesses and ailments that will be covered.

It is extremely important to ensure the welfare and wellbeing of your employees, and opting for a critical illness insurance plan can go a long way in this.

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