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Critical Illness and Group Benefits

Posted February 23rd, 2012 in articles by admin

Critical Illness Insurance, like Disability is a Living Benefit. This means that you can collect the insurance proceeds while you are alive.

Critical Illness typically pays the insured a lump sum payment if he or she is diagnosed with one of the critical illnesses that are covered by the policy.

The covered illnesses can be different from policy to policy, but typically, the “Big” three that are covered are Life Threatening Heart Attack, Cancer or Stroke. Most policies stipulate that the insured must survive the Critical Illness for 30 days before any benefit is payed.

Depending on the policy, many other illnesses may be covered. These can include the following.

Becoming blind
Becoming deaf
HIV or AIDS
Parkinson’s
Becoming Paralyzes
Alzheimer’s
Kidney Failure
Other terminal illnesses.

It is important understand what illnesses are covered and under which conditions they are covered before purchasing a policy. While Critical Illness insurance can be very important, you want to make sure you have the coverage you expect.

Most Group Benefit plans do not include Critical Illness, but more are starting to. Most plans that are on a budget put the priority on Disability Insurance, but not always.

Critical Illness is also unique in the sense that it was not invented by an Insurance company trying to come up with a new revenue stream. It was invented by Dr. Marius Barnard from South Africa after he saw how people can become financially ruined as a result of becoming critically ill.

He envisioned critical illness insurance to help with costs associated with being very ill. The cash payouts can help with finances to temporarily help with things such as:

Paying for hospitalization, care and treatment.
Income Replacement if you are unable to work
Pay for physical aids and other devices you may need
Keep your pre-illness lifestyle

While not all group plans provide Critical Illness Insurance, many are starting too. If you see value in the this insurance, but don’t have it in your group coverage, you can always purchase it on an individual basis.

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