Group Critical Illness Insurance: An Essential Component of Benefits that is often Overlooked

Group Critical Illness Insurance: An Essential Component of Benefits that is often Overlooked

  November 14, 2023

SEB Marketing Team

The importance of critical illness insurance cannot be overstated, especially in a world where unforeseen health issues can strike anyone at any time. Let’s delve into some key statistics and why every employee should consider this crucial component in their group benefits coverage.

Understanding the Critical Illness Landscape in Canada

First, let’s consider some revealing statistics. In Canada, over 90% of critical illnesses come down to two. Cancer (Approximately 1 in 2 Canadians will be diagnosed with cancer in their lifetime) and Cardiac related (About 1 in 12 Canadians is living with a diagnosed heart disease). By our mid-forties the likelihood to be diagnosed with either of these sharply increases.. As technology and medicine improves, treatments and prevention are also increasing allowing more people to survive. For example, there is an increase in those surviving strokes, yet there are approximately 850,000 adults living with disabilities as a result of a stroke. These numbers emphasize the sobering reality of the economic burden associated with the recovery cost of surviving a critical illness. They are not rare occurrences but are, in fact, part of life’s unpredictable tapestry.

The Gaps in Standard Coverage

Many employees are offered standard benefits coverage, which typically includes living benefits such as disability insurance, medical and dental coverages. While these are undoubtedly vital, they might not provide the comprehensive support needed in the event of a critical illness. It’s important to recognize that such illnesses can result in more than just medical expenses; they can lead to a significant loss of income due to extended periods of recovery or treatment. Critical illness insurance can provide funds to help you pay for such unexpected costs.

Beyond Medicine and Treatment

Critical illness insurance is a tax-free lump sum payment given that isn’t limited to covering medical costs alone. It allows you to decide where you need the most financial support and how you spend the money. This coverage can include assistance with everyday needs, such as housekeeping services, or even modifications to your home to accommodate your condition and acquiring devices and aids that are not covered by regular insurance coverage. These seemingly small amenities can make a world of difference to individuals and families navigating the challenges of a critical illness.

Protecting Your Future

Given the uncertainties that life can present, it’s paramount that employees take critical illness insurance seriously and meticulously analyze the coverage options. By doing so, they can secure a financial safety net that provides peace of mind and protection in the face of surviving an unexpected health issue. Critical Illness insurance varies depending on age, health, potential qualifying factors, coverage options and, of course, how your insurance defines and categorizes critical illness. Considering critical illness insurance while you are still young and healthy is not only less costly and easier to qualify for, planning for the unexpected while healthy is the best time to make these critical decisions.

Often employee group benefits plans provide optional critical illness insurance with affordable group rates, and coverage options which makes it even more attractive for employees to consider. Employers can rest assured that their employees have the coverage they need during such a life changing event.

Being financially prepared can lessen stress during an already difficult time and is part of healthy financial planning. With critical illness insurance, individuals can focus on recovery and well-being without the added burden of financial stress.

While everyone dreams of staying healthy into retirement, critical illness insurance stands as a beacon of financial protection, offering the support needed to safeguard your future and that of your loved ones. It’s an investment in peace of mind, a testament to foresight, and a powerful shield against the uncertainties that life may bring.

SEB Administrative services offers benefits administration solutions including voluntary products such as critical illness insurance. Click here for more information.

SEB is a Canadian technology company specialized in providing benefits administration solutions, with more than 400,000 lives under administration from some of Canada’s leading companies. Check out the full suite of SEB’s solutions here.