You are probably familiar with critical illness cover as something that is taken out by individuals but you may not have been aware that sometimes companies take out such policies on the life of another. This is quite often called key man insurance and the general principles as to why it is taken out are the same in that a lump sum will become payable should the said individual be diagnosed with a specified critical illness following a defined survival period of time.
Peace of mind for staff and employers
Group critical illness is often provide to larger organisations and insurance companies tend to need there to be at least 50 members of staff but this allows them to make pricing competitive for the employer. The actual cover is still assessed in a similar way to individual cover namely the sum assured, the term of the critical illness plan and the individual’s details. This will include questions about their lifestyle, age and family health.
Whilst key man insurance is normally something that much larger organisations offer to their employees, there could be some very sound reasons for a smaller employer making such critical illness insurance available. Unlike a larger organisation, a smaller company may really struggle to cope without a key member of its team. It may also prove to be completely impractical to move someone from a different area of work. Key man insurance could enable to you cover this eventuality. Not only will it give essential financial support to the member of staff affected by illness but it allows you as an employer to take action to source temporary cover.
Critical illness – the benefits
Critical illness cover is one of those things where it can be difficult to appreciate the benefits until it is needed. Once you have critical illness quotes that you accept and are in place, it could bring a lot of peace of mind to both your employees and to you as a business owner and that is something that can be enjoyed straight away.