Critical Illness Insurance

The Impact of Stress and Health Risks on Today's Workforce

In today’s tight labor market, employers need the best employee benefits to help them stand out. According to a report from insurance carrier The Hartford, employee stress – especially amongst millennials, employees making less than $50,000 per year, and employees with children – has skyrocketed.

Not only do workers live in fear of contracting COVID-19, but other diseases that have plagued humanity for centuries remain a threat. These include cancer, heart disease, and diabetes, which are among the top 10 leading causes of death in the U.S.

Not only do employees worry about their own health and the health of their loved ones, but also about the financial ramifications of illness, including:

  • Hospital costs
  • Loss of income
  • Medical bills


Consider these statistics: 

  • More than 26% of U.S. adults ages 18-24 say they or someone in their household had problems paying a medical bill in the past 12 months.
  • More than half of Americans (56%) have less than $1,000 in saving

Critical Illness Insurance

Providing Tailored Coverage: The Advantages of Voluntary Group Worksite Benefits Plans

Increasingly, smart employers are offering workers voluntary group worksite benefits plans to provide coverage in the form of additional income to cover medical bills, living expenses, and even experimental treatments.

Employers can tailor coverage to workforce demographics, and can change the plan based on trends within the workplace and anticipated employee needs. In a world where business owners, employee benefits supervisors, and HR departments must shift from “one-size-fits-all” thinking and employees expect and demand personal treatment, customized, voluntary critical illness health insurance should be part of a business owner’s recruiting and retention plan.

After all, employees want flex-time, the capability to work remotely, and other perks to personalize their work experience. Customized benefits packages can show employees that they are valued and, most importantly, thought of as individuals.

Critical illness health insurance doesn’t have to cost employers anything, either, as top carriers offer funding options including:

  • 100% employee paid
  • Cost-sharing
  • Employer-paid

Frequently asked questions

If you’re a statutory benefits broker or an employee benefits expert, your customers may have questions about critical illness health insurance and the advantages of such a plan.

Critical illness health insurance offers a lump sum pay-out to employees diagnosed with a covered illness.

Some of the illnesses covered include:

  • Cancer
  • Heart attack / heart surgery
  • Stroke
  • Major organ transplant
  • Bone marrow transplant
  • Kidney failure

Employers can further customize their plans to include:

  • Neurological care
  • Child-specified benefits
  • Health screening benefits
  • Many others

Depending on the specific critical illness health insurance plan, the money can be used toward:

  • Mortgage or rent payments
  • Living expenses
  • Medical bills or co-pays
  • Rehabilitation costs
  • Experimental treatments not covered by insurance
  • Medical second opinions that may not be covered by health insurance
  • Medical-related travel
  • Can start at the diagnosis of illness
  • Gives you money when you need it most
  • Provides Lump Sum payout
  • More than 26% of U.S. adults ages 18-24 say they or someone in their household
  • had problems paying a medical bill in the past 12 months.
  • More than half of Americans, (56%) have less than $1,000 in savings.
  • Helps with Co-pays and Deductibles
  • Rehabilitation Costs

These financial benefits, offered with no waiting periods, can provide financial peace-of-mind during a stressful time for an employee. The funds can supplement statutory disability benefits in states where STD or TDI is mandated, like New York and New Jersey, and can provide income replacement for employees that don’t have short term disability coverage or where it’s not mandated by law.

The best insurance brokers today take a consultative approach to selling employee benefits, educating their customers on what’s available and emphasizing the cost-savings opportunities that come with bundling employee benefits.

Brokers in states that mandate short term disability or paid family and medical leave benefits, including New York, New Jersey, Massachusetts, and Connecticut, can show their customers how to enhance coverage with critical illness protection and save money by writing multiple lines with one carrier.

Business owners across the U.S. can consider critical illness insurance as part of an enhanced employee benefits package. Especially in states with a high cost of living and a tight labor market, these benefits can make the difference between attract and retaining top talent or struggling through the labor shortage.

Though critical illness insurance plans don’t provide medical or hospital coverage, they can be used to supplement living expenses and replace income in many situations. When combined with each state’s disability and paid family leave programs, they can provide employees with the income replacement they need to stay afloat during periods of illness, especially in high-income regions of each state.