We definitely urge employers to offer Critical Illness coverage as a mandatory or at least an optional benefit.
What exactly is Critical Illness coverage?
Critical Illness coverage is an insurance product in which the insurer is contracted to typically make a lump sum cash payment if the policy holder is diagnosed with one of the specific illnesses on a predetermined list as part of an insurance policy.
Policies can range from covering three medical conditions to as many as 24.Research shows that 53% of the Canadian workforce has at least 1 chronic disease. With an aging workforce, this is likely to increase in the coming years.
What is the difference between Critical Illness coverage and Long-Term Disability benefits?
Often the deterrent to purchasing Critical Illness coverage is the thinking: "If I get a severe ailment, I’ll most likely be disabled and receive Long-Term Disability benefits, so why take the added coverage?"
However, Long-Term Disability benefits offer a monthly payment that covers only part of the employees basic monthly earnings. Typically, it's not enough to cover lump sum costs of expensive surgeries and treatments or adjusted necessities of living such as modifying your home to accommodate your changed needs.
Furthermore, Long-Term Disability becomes eligible only after a waiting period (ranging from 119-180 days) and is not immediate.
Critical Illness, on the other hand, is a lump sum payment upon diagnosis of a listed ailment and the money received can be used for any purpose without restriction such as paying off mortgages, expensive treatments out-of-country, modifications to your home for accessibility, etc.
This is another great discussion to have with your Revolution Benefits Advisor!