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
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:
Employers can further customize their plans to include:
Depending on the specific critical illness health insurance plan, the money can be used toward:
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.