What Is Group Critical Illness Insurance?

My employer is offering to pay for Group Critical Illness Insurance for all employees, but I’ve never heard of it before. What is Group Critical Illness Cover and should I take them up on it?

Question asked by Mr L Mayweather
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Answered by Michael Englefield

Whether or not you choose to participate in your company Critical Illness Insurance scheme is up to you and will depend on your circumstances. However, I’m happy to clear up your question about what Group Critical Illness Cover is.

How does Group Critical Illness Cover work?

How Group Critical Illness Insurance works is fairly simple. Your employer pays the premiums on your behalf and the plan will pay a cash lump sum should you be diagnosed with an insurer-specified critical (serious) illness.

The lump sum payout you’ll receive will be based on a multiple of your salary; this will typically be between 1-5 times your annual earnings.

What’s covered by Business Critical Illness Insurance?

The ‘big three’ claims on Critical Illness policies are:

  • Cancer
  • Heart attacks
  • Strokes.

Other illnesses typically covered by most Critical Illness Insurance policies include:

  • Multiple sclerosis
  • Parkinson’s disease
  • Kidney failure
  • Motor neurone disease
  • Permanent loss of vision/hearing.

This is far from an exhaustive list, but it gives you an idea of the severity of illness and disabilities covered by Critical Illness Insurance.

Some policies will pay out on a sliding scale depending on how severe your critical illness is. So a major stroke might trigger a 100% payout on the Critical Illness policy, but a minor stroke/transient ischemic attack might trigger a lower payout, or no payout at all if it doesn’t reach the insurer’s threshold. This will be determined by your policy’s terms and conditions.

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This information does not constitute financial or other professional advice. You should consult your professional adviser or contact us directly on 02084327333 should you require financial advice. It is important to ensure any insurance policy you take out is suitable for your needs.
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