What is critical illness insurance?
No one wants to think about getting cancer, having a heart attack, or suffering a stroke. Illnesses like these can be devastating for your employees and their families in many ways, especially financially. Even with health insurance, situations like these can leave an employee owing tens of thousands of dollars in medical bills.
Critical illness insurance can help with this. Critical illness insurance provides an additional layer of protection when an employee has a qualifying critical illness. Educating your employees about this is essential, and at MSIG, we can help with this.
Health insurance is often not enough.
Many people believe that health insurance will be enough to protect them, even in the event of a significant illness. While health insurance will typically cover some of the expenses, patients can be left with huge medical bills. High deductible health plans, cost sharing, out-of-network providers, and plan limitations can all contribute to these out-of-pocket costs. Even with a rich group health insurance plan, your employees could still face tremendous expenses.
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One of the main factors in attracting and retaining good employees is the benefit program offered by employers. This typically starts with your group health insurance plan.
Regardless of the company’s financials, there are ways to make health insurance available to your employees and their dependents. Offering health insurance doesn’t have to break the bank. There are many solutions available to small, mid-size, and large employers.
When employees are worried about their financial situation, they may not be as productive. Many individuals today do not have life insurance or adequate savings to cover final expenses, which places additional stress on employees and/or their families when the need arises.
A group life insurance plan can put your employees’ minds at ease, knowing their family will have resources available when they need them. Policies can also include a dependent benefit to help the employee pay for expenses if their dependent passes. Another solution is to offer a voluntary life benefit whereby the employee pays a lower premium through payroll deduction than they would if they found coverage on their own. Group life insurance is also tax deductible.
Many employers are faced with offering lower wages than their competitors and find it difficult to find and retain qualified workers.
Offering a short-term and/or a long-term disability program can provide prospective and current workers with another form of financial stability. An employee may be offered a higher wage elsewhere, but are they offered protection if that paycheck stops due to pregnancy, illness, or other disability? How will they pay the mortgage or other bills? Employers offering a disability plan can provide peace of mind to their employees and gain an advantage over those that don’t.
Failure to have regular dental checkups can lead to more serious problems than a toothache.
Offering dental coverage to your employees can help encourage them to see a dentist on a regular basis. Gum disease has been linked to heart disease as well as diabetes. Catching these issues early not only helps your employees’ health, it may help reduce your long-term health insurance costs before a big claim hits!
Similar to dental coverage, if your employees are not getting regular eye exams, they may have underlying medical conditions such as heart disease or diabetes that can surface later at a greater expense to your medical plan.
Offering vision care coverage is a very affordable component to offering health benefits. It’s an inexpensive portion of the benefit package with a high value of return and can help offset the impact of increased medical costs, becoming a cost-effective, early intervention tool.
Not being able to meet an employee’s individual needs can pose a threat to worker retention and attracting new talent, both of which can be costly to your bottom line.
Offering voluntary coverage lets your employees choose benefits that are important to them. It’s a cost-effective way to provide a variety of benefits at little or no impact to your monthly premiums. Examples of voluntary coverage include:
- Critical illness, hospital indemnity, and cancer coverage.
- Life, dependent life, short-term, and long-term disability coverage.
- Dental care.
- Vision care.
Compliance audits are increasing and Department of Labor fines can be costly. Do you have all of the documents and paperwork at your fingertips should you receive an audit letter?
A good benefits broker will educate you on the compliance pieces so that you are prepared for that dreaded day. A wrap document covers most of what is required and the remaining forms should be readily accessible with proof of distribution to employees and/or eligible participants.
Additional expenses associated with a critical illness.
Someone who is facing a critical illness is likely missing income while in treatment. However, there are still groceries to buy, rent or mortgage to pay, and childcare expenses to fund. In addition, they may be incurring additional expenses such as transportation costs to receive care. Many critical illness insurance policies will offer benefits in the form of cash to be used in any way the policyholder sees fit, making this a more desirable product for employees.
What constitutes a critical illness?
What may seem like a critical illness to someone may not be considered one under the rules of the critical illness insurance policy, and the definition can vary from one insurance company to the next. Typically, illnesses such as heart attack, stroke, cancer, organ transplants, coronary bypass, and renal failure are included. Some cancers may be excluded if they aren’t life-threatening, and recurrences of illnesses also might not be covered.
To learn more about offering critical illness insurance to your workforce, request a free critical illness quote today to speak with an MSIG employee benefits specialist.
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As an independent agency, we are here to help you find the right Critical Illness Insurance coverage.
Critical Illness Insurance Quote
As an independent agency, we are here to help you find the right coverage.