Critical Illness insurance issues a lump sum pay out 30 days after an employee is diagnosed with one of the covered illnesses such as Cancer. The plans vary by insurance company, but typically a plan with Critical Illness insurance will include coverage for Cancer, Heart Attack and Stroke. Many will also cover the diagnosis of MS, Parkinson’s, Alzheimer’s and Paralysis along with a dozen other illnesses.
The reason this coverage is so valuable is because there is no medical underwriting. This means that ALL employees no matter what their current health status or family history is are approved for coverage. With individual plans it can be difficult and costly to get coverage. It is significantly less expensive in a group plan than it is for employees to purchase this coverage on their own individually.