Critical illness cover – have you overlooked this valuable workplace benefit?

You may feel that you provide a comprehensive benefits package to your employees. However, if you haven’t considered adding critical illness cover to your roster of benefits, you may be missing a trick. Neal Shepherd, Partner at Secondsight emphasises the importance and significance of taking critical illness cover in his latest blog, recognising the value of  proactive planning for unforeseen circumstances.

While life insurance and income protection tend to be among the most popular benefits offered to employees, critical illness cover could be a valuable addition – for businesses, and employees.

As with private health insurance and life insurance, offering the option of adding critical illness cover to the list of benefits you provide can help show your employees that you care about their health and wellbeing, and their family.

Group critical illness cover can provide a valuable optional extra and added peace of mind

Thousands of people in the UK are diagnosed with a critical illness every year. Such illnesses can often lead to difficult life changes and upheaval. It may be necessary to take time away from work or, in some cases, retire earlier than originally planned. All of this can place significant pressure on an individual’s emotional wellbeing and their finances.

One unfortunate example has been highlighted by TV presenter Jonnie Irwin, who has been vocal about his regrets surrounding his mistake in failing to take out critical illness cover alongside his life insurance policy. Diagnosed with terminal cancer in 2022, he’s been candid about how this oversight, telling the Independent that it “put a lot of pressure on having to work on days when I didn’t want to go to work”.

A critical illness payout could provide practical financial support when it’s needed most

Critical illness cover pays out a tax-free lump sum if an employee is diagnosed with an illness or medical condition specified in the terms of the policy.

The money can be spent however they wish. It could be used to:

• Help pay medical bills
• Adapt their home
• Clear large debts such as a mortgage
• Provide an income if they are absent from work for an extended period.

If you’re keen to show that your business cares about your employees’ wellbeing, critical illness cover is a benefit you should seriously consider.

The financial boost this type of insurance could provide can help ensure sick employees are able to make the most of their time with family and loved ones – unlike Jonnie Irwin, who has been forced to spend time away from his family.

The financial freedom a critical illness payment could offer means employees have one less thing to worry about. This can allow crucial time to focus on taking care of themselves and help ensure they receive the best treatment while they continue to work or aim towards returning to the workplace.

The rising cost of living and increasing number of people choosing flexi-retirement mean more people are working longer

With the rising cost of living and the growing trend for taking a flexi-retirement, many more people now continue working beyond pension age. As a result, there’s a heightened risk that more employees may become seriously ill.

And it’s not just that people are working longer. The rising rates of obesity in the UK are also adding to the risk that more people will be diagnosed with cancer or heart disease.

Choosing cover that’s right for your business

Critical illness insurance varies greatly in both the illnesses covered and the cost of premiums.

Although cover usually includes conditions such as cancer, heart problems, and strokes, it’s important to read the small print to determine what is and isn’t covered.

You can choose the level of cover you want to offer. This can be a fixed amount, for example the value of an employee’s annual salary or as much as five times their annual salary. Alternatively, you can opt for a single lump sum amount when setting up the policy.

We can help you understand which policy might be suitable for you and your employees, and help assist you in avoiding paying expensive premiums on insurance that isn’t what you expected.

While some companies offer critical illness cover as an optional extra, for all the reasons outlined above, it may be better to offer it as a core benefit.

Get in touch

Critical illness cover can be complicated, making it difficult to find the most suitable policy for your business, so it’s sensible to talk to an expert adviser. We can help ensure that you and your employees are getting the cover you expect.

If you’d like to explore how critical illness cover could help drive your business forward, please get in touch.

Email info@second-sight.com or call us on 0330 332 7143.

 

Please note

This blog is for general information only and does not constitute advice.

Note that financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse. Cover is subject to terms and conditions and may have exclusions.

Secondsight is a trading name of Foster Denovo Limited, which is authorised and regulated by the Financial Conduct Authority. Reg No. 05970987.