Critical Illness Cover

Critical Illness cover is a well-regarded employee benefit, designed to take the financial pressure off an employee if they develop a medical condition defined as a critical illness by the insurer. Typically, around 13 core illnesses are covered including cancer, heart attack, stroke and dementia.

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In the unfortunate event of a critical illness being diagnosed, a tax-free lump sum will be paid directly to the employee who can spend it how they wish. It might be used to pay bills, fund healthcare costs, or finance a well-earned holiday once treatment is complete.

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The lump sum is normally based on a multiple of an employee’s salary from 1X to 5X, up to a maximum benefit of £500,000.

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Children are typically covered free of charge from birth until their 18th birthday with lower benefits. Partners of employees can also be included.

Most critical illness insurers allow cover to be extended, at additional cost, to cover a longer list of medical conditions.

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Added-value benefits such as stress counselling, nursing helplines and second medical opinion services are often incorporated within a critical illness policy.

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Including critical illness cover in an employee benefits package will show your employees that you’re a caring employer and will help you attract and retain staff.