Critical Illness Cover
Critical Illness Cover is an increasingly sought after employee benefit. It provides a lump sum payment in the event of an employee being diagnosed with a specified critical illness whilst in service with the company but survives for a certain period following diagnosis (usually 28 days).
Critical Illness Cover Essentials
- Companies usually offer employees cover of between two and four times the employee’s salary.
- As this type of benefit is not written under a trust arrangement, it is assessed for tax purposes within the employee’s earnings.
- CIC can be provided as part of a flexible benefits package or on a voluntary basis.
The conditions covered vary between insurers but there are a number of core illnesses included in the majority of policies. These include: cancer, heart attacks and strokes with multiple sclerosis and major organ transplant often covered too.
The lump sum payment can be used to help the employee overcome the physical, emotional and financial traumas that would result from the diagnosis of a serious illness. It may be used to pay for home help, nursing care or a holiday to recover from intensive treatment.
Critical Illness Cover should be viewed as a key part of your employee benefits package. Our specialists at TR Corporate will walk you through the options available and answer any questions you have regarding Critical Illness Cover to help you to make an informed decision for your business and your employees.