The Importance of Group Critical Illness Insurance

In today’s fast-paced world, health concerns can arise unexpectedly, and the financial burden of a critical illness can be overwhelming. Though it is most common to provide Group Hospital and Surgical Insurance (GHS), there are additional types of corporate medical insurance in Singapore that are worth considering. For businesses looking to safeguard the well-being of their employees and provide them with peace of mind, offering Group Critical Illness (GCI) insurance is an important consideration. In this article, we will delve into what Group Critical Illness is, reasons to get it, and the key factors to consider when selecting this type of coverage.

What is Group Critical Illness?

Group Critical Illness is a type of insurance policy and commonly found in medical benefits for employees. It provides financial protection in the event that an employee is diagnosed with a critical illness. Critical illnesses covered under these policies typically include life-threatening conditions such as major cancer, heart attack, stroke and kidney failure. If an employee is diagnosed with one of the covered illnesses, they are entitled to a lump sum payment from the insurer which can help cover medical bills, treatment costs, and even lost income during recovery, alleviating the financial stress during a challenging time.

Group Critical Illness is usually a rider to Group Term Life Insurance. As a rider, there are 2 types of covers: Accelerated or Additional. Under Accelerated basis, the policy will pay out the sum assured when the member is diagnosed with any of the included critical conditions. As a result, the Group Term Life cover will be reduced by the amount paid under the Critical Illness Cover. Under Additional basis, the payout for Group Critical Illness will not affect the Group Term Life sum assured. The sum assured for Group Term Life will remain the same after the Group Critical Illness payout is made.

What is covered in Group Critical Illness?

Here is the list of covered Critical Illnesses:

Major Cancer
Heart Attack of Specified Severity
Stroke with Permanent Neurological Deficit
Coronary Artery By-pass Surgery
End Stage Kidney Failure
Irreversible Aplastic Anaemia
End Stage Lung Disease
End Stage Liver Failure
Coma
Deafness (Irreversible Loss of Hearing)
Open Chest Heart Valve Surgery
Irreversible Loss of Speech
Major Burns
Major Organ / Bone Marrow Transplantation
Multiple Sclerosis
Muscular Dystrophy
Idiopathic Parkinson’s Disease
Open Chest Surgery to Aorta
Alzheimer’s Disease / Severe Dementia
Fulminant Hepatitis
Motor Neurone Disease
Primary Pulmonary Hypertension
HIV Due to Blood Transfusion and Occupationally Acquired HIV
Benign Brain Tumour
Severe Encephalitis
Severe Bacterial Meningitis
Angioplasty & Other Invasive Treatment for Coronary Artery
Blindness (Irreversible Loss of Sight)
Major Head Trauma
Paralysis (Irreversible Loss of Use of Limbs)
Terminal Illness
Progressive Scleroderma
Persistent Vegetative State (Apallic Syndrome)
Systemic Lupus Erythematosus with Lupus Nephritis
Other Serious Coronary Artery Disease
Poliomyelitis
Loss of Independent Existence

This list of Critical Illnesses is from The Life Insurance Association of Singapore (LIA), under version 2019. You may refer to LIA’s website here for the standard Definitions.

Why Should Companies Get Group Critical Illness Coverage?

Here are some reasons why you should offer Group Critical Illness coverage as part of your employee benefits package:

1) Employee Well-being and Retention

Employees are a company’s most valuable asset. Providing Group Critical Illness coverage demonstrates a company’s commitment to their employees' health and well-being. Knowing that they have coverage in case of a major health crisis can improve morale and employee loyalty. This in turn helps to attract and retain top talent in today’s competitive job market.

2) Financial Protection

A critical illness diagnosis often comes with significant financial costs. Employees may struggle to cover medical bills, pay for treatments, or manage household expenses if they are unable to work. Offering Group Critical Illness helps businesses to protect their employees from financial hardship during difficult times. It also reduces the likelihood that employees will need to take extended leave or face financial strain while recuperating.

What to Consider When Getting Group Critical Illness Coverage

Before purchasing Group Critical Illness, employers should take these important factors into account to ensure they choose the right plan for their business and employees:

1) Sum Assured Value

The benefit amount, also known as the sum assured provided by the policy varies, and employers need to determine what amount would be sufficient to assist employees in the event of a critical illness. While some policies offer a set amount for all employees, others allow employers to customise the amount based on factors such as seniority or job position. A higher benefit may provide greater financial relief but usually also comes with a higher premium.

2) Exclusions and Waiting Periods

Like any insurance policy, group critical illness insurance comes with exclusions and limitations. Employers should carefully review the policy to ensure they understand what is excluded, such as certain pre-existing conditions or illnesses that may not be covered. Additionally, some policies may have a waiting period before coverage kicks in, so employers should be aware of any waiting times and communicate this clearly to employees.

Conclusion

Group Critical Illness insurance is a valuable tool for employers looking to support their employees through life’s unexpected health challenges. Not only does it protect employees financially in the face of serious illnesses, it also promotes overall employee satisfaction, engagement, and retention. With the right plan in place, businesses can ensure their employees are well cared for in times of need, ultimately fostering a healthier, more productive work environment. If you are looking for Group Critical Illness coverage or any other forms of group insurance for employees, please contact us today.