Why is critical illness cover so popular all of a sudden?

We’ve definitely noticed more interest in Group Critical Illness Insurance over the last couple of years. 

And it’s not just us. 

According to the Association of British Insurers, the number of people buying Critical Illness Insurance was four times higher in 2023 than it was 10 years ago. 

And the total value of individual critical illness claims increased to a record £1.2 billion in 2023.

So, why the increased interest? And is this a policy SMEs should be offering to their employees?

Access free honest advice and support by contacting our award-winning brokers via 01273 222805 or [email protected]. We can also provide quotes for Critical Illness policies and other employee benefits, all tailored to your business and with no obligation to buy.

The benefits of Group Critical Illness Insurance

A Group Critical Illness policy is designed to pay out a lump sum to employees in the event of them suffering a critical illness, as defined in the terms of a policy.

The payout basically ensures that a staff member can afford to look after themselves that little bit better. The money can be used for whatever they feel is most needed, such as day-to-day living costs, home adjustments or to pay for extra care support. It’s entirely up to the employee.

Conditions covered on a policy usually include things like heart attacks, strokes, cancers and much more besides. One of our jobs, aside from giving clients bespoke policy quotes, is to ensure they know exactly what they are getting with a policy and how the claims process works.

How staff benefit

Apart from having a financial safety net should they suffer a critical illness, staff can also get access to further services and support. This might include things like:

• An Employee Assistance Programme (EAP), offering counselling services and wellbeing tools
• Option of covering other family members (for example, Aviva actually adds child coverage at no extra cost)
• Mental wellbeing support via digital apps
• Access to a personal nurse service in the event of a successful claim

Note: the potential benefits will vary depending on what critical illness plan you choose. 

How businesses benefit

Firstly, it’s a relatively low cost form of coverage. It’s also easy to set up and manage when you make use of the free services offered by a broker like Hooray.

A Company Critical Illness policy usually includes general wellbeing services too, which can help keep people fit and healthy.

Most businesses want to do the right thing for their employees in an affordable way, and this makes critical illness coverage a shrewd investment for many. And this may explain its rising popularity.

Is Critical Illness Cover a smart investment?

To know for sure, it’s best to call one of our expert advisors. Otherwise, here are some key things to consider:

Claims pay-outs

One of the things that people often worry about any insurance policy is whether it will actually pay out on claims. Thankfully, Company Critical Illness Coverage has an excellent record. In 2023, over 90% of claims were paid out, according to the ABI and GRiD.

Value of added extras

Some insurers are adding some really great extra features which all staff can benefit from. Employees can use an EAP to manage day-to-day stresses, or a wellbeing app to assist their mental or physical health. Canada Life even offers a dental app with its policy!

For this reason, it’s really worth shopping around.

Know what you have and how to use it

We’ve come across so many companies who have spent a lot on employee benefits, yet no-one knows how to use them. Sometimes they don’t even know what they’ve got!

Our Head of UK Employee Benefits, Mike Hesch, was recently asked his views on how companies can get more from their Group Critical policies. He feels that companies need more support:

“Help and support for employers to communicate their critical illness offering would really help employers and employees to understand what is covered and how to claim if the need arises.”

Standard versus “enhanced” cover

Most insurers offering Critical Illness plans will offer different options of coverage, often termed in the industry as ‘standard’ or ‘enhanced’ cover. 

Again, the best option may depend on your budget. Mike Hesch once again has some words of wisdom:

“We always recommend enhanced cover to encompass a broader range of illness, usually around 40, instead of the standard 12, as the increase in cost is minimal.” 

How it mixes with other benefits

We always consider how a policy blends with other policies currently held by a company. For example, if you’ve already got an EAP on a Company Health Insurance plan, you probably won’t need another one. The same is true of mental health apps.

We like to make sure that our clients don’t double-pay for services they already have!

Affordability now and in the future

Any policy needs to be affordable, not just now but going forward. Do you know how much the cost might increase next year? We’re never afraid to discuss future potential price increases with clients to ensure they are affordable now and in the future.

How to choose the right policy

Group Critical Illness Insurance is a relative newcomer to the world of health and protection. Policies are evolving at a rapid rate with new additional services being added all the time.  

The key reason why this policy is becoming more and more popular comes down to the fact that it’s relatively affordable and has some genuinely useful extra services which don’t require a claim.

There are many providers out there, offering a different scope of coverage, so it’s important to consider your options carefully. 

The Hooray team is completely agnostic when it comes to insurers and the Group Critical policies they offer. If you contact us for free advice and support you can be assured of getting honest advice from genuine experts.

Simply call 01273 222805 or email [email protected] to find out if Group Critical Illness Insurance is right for your business.