5 Things You Need to Know About Critical Illness Insurance

Critical Illness Insurance as Fringe Benefits

Facing a critical illness is stressful and traumatic enough, without even considering its financial burdens. Although great medical advancements have improved the survival rates of people who suffer from critical illness, it comes with a hefty price.

Critical illness insurance is a health insurance that pays a lump-sum cash if you are diagnosed with a critical or life threatening illness covered by your policy. Critical illnesses can cause severe financial problems, and a critical illness insurance is meant to help the beneficiary at this time.

What are the Things You Should Know about Critical Illness Insurance?

If you are planning to provide critical illness cover for your hourly workers, here are the things that you (and your employee) should know:

1. It pays a lump-sum amount, tax free.

Unlike a disability insurance which gives monthly payouts, critical illness insurance pays a lump sum, tax-free payout. To avail of the benefit, it does not require the beneficiary to provide a proof of loss of income.

2. It covers three major critical illnesses.

There are three major health problems covered primarily by critical illness insurance. These are:

·       Cancer

·       Heart Attack

·       Stroke

Other conditions that may be covered by a critical illness insurance policy include:

·       Heart Transplant

·       Coronary Bypass Surgery

·       Angioplasty

·       Kidney Failure

·       Major Organ Transplant

·       Paralysis

·       Blindness

·       Multiple Sclerosis

3. It does not cover pre-existing critical illness.

Most critical illness insurance will not pay for critical illnesses caused by pre-existing medical conditions, or pre-existing critical illnesses. It is important for your hourly worker to be as completely honest about his medical conditions, as any omission can invalidate the benefit. A higher premium is usually required if the beneficiary has pre-existing conditions, a history of illness, or any family member has a history of serious illness.

Minor heart attacks and early stages of cancer may also not be covered by a critical illness insurance.

4. It does not pay out in the event of death.

Critical illness insurance is different from life insurance. Critical illness cover pays when the beneficiary survives the illness. Life insurance pays when he does not.

5. The lump-sum payout can be used to pay for many things.

A critical illness insurance helps alleviate financial stress at a time when your hourly worker suffers from a critical illness. Here are just some of things it can be used for:

·       Pay for medical treatments not covered by the employee’s health plan.

·       Pay for mortgage while employee is recovering.

·       Pay for bills.

·       Pay for travel expenses for treatments not available locally.

ARCHER JORDAN Customizes Employees’ Fringe Benefit Plans

ARCHER JORDAN is a third party benefits administrator and we specialize in fringe benefits for prevailing wage hourly workers. Critical illness can befall anyone, so give your prevailing wage workers the peace of mind that they and their families are sufficiently covered. For more information on critical illness insurance, contact us now!

5-Easy Steps to Fringe Benefit Compliance

In this FREE guide we’ll show you how to create a fringe benefit plan that secures your business