Normal medical and disability insurance plans do not always cover the potentially significant expenses related to critical injury or illness, with costs accumulating especially during the recovery process. That’s why offering critical illness insurance can play an important role in strengthening the financial safety net for employees.
With a growing share of the population having limited savings, employees may have a large financial exposure in the event of a critical illness. Beyond traditional medical costs, financial challenges may also result from:
- Traveling expenses related to treatment
- Lost wages from taking time to care for a critically ill relative
- Out-of-network treatment charges
- Alternative treatment charges
Critical illness insurance coverage provides a lump sum benefit for the six leading illnesses and health events:
- Heart attack
- Major organ transplant
- Kidney failure
- Coronary artery bypass graft
Offering critical illness coverage complements high deductible health plans (HDHPs) by eliminating the worry of having to pay for a high deductible in the middle of suffering a major illness. It also serves as an affordable way to fill a gap in coverage.
Employees can reduce their financial risks in the event that serious illness occurs, while also offering the benefit as a recruiting tool or as a way to compensate for changes in core medical plans. Employers can offer a wellness benefit option under a critical illness plan that reimburses an employee each year for having certain tests and routine exams done, as well.
Most important, offering this coverage can help blunt the devastating impact critical illness can have on employees, both in terms of health and finances. Contact the Benefits team at The Reschini Group for more information on critical illness insurance.
Copyright 2017 The Reschini Group
The Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.