Group critical illness cover
Three illustrative stories that reveal the real impact of group critical illness cover
When an employee is diagnosed with a serious illness, the impact can often extend to their family life and finances.
Medical advances have resulted in more people now surviving serious conditions, such as cancer or heart disease, but recovery can take time and employees may face financial difficulties if they are unable to work as normal.
Group critical illness cover pays a tax-free cash lump sum following the diagnosis of a condition included within a defined list of serious conditions, providing financial support at a time employees may need it most and reducing the need for ad-hoc employer support.
To bring this to life, we’ve come up with three illustrative scenarios inspired by real challenges that employers have faced. Although the individuals are fictional, the circumstances outlined may be familiar to many.
Story one: Supporting an employee after a serious diagnosis
When Mark, a 46-year-old operations manager at a manufacturing company, was diagnosed with bowel cancer, the news came as a shock to him, his family and his team at work who relied on his expertise and experience.
Mark’s treatment plan required surgery, followed by months of recovery.
Although he was entitled to statutory sick pay and employer support, he quickly found that his reduced income was putting significant pressure on his household finances.
To support his recovery, his partner cut back her working hours, but the family started facing additional costs, such as hospital travel, physiotherapy and childcare.
Through his employer’s group critical illness policy, Mark received a cash lump sum shortly after diagnosis. This could not replace his income indefinitely, but it gave the family breathing space.
The payment helped them to keep up with their mortgage commitments and meant that Mark could focus on his treatment, rather than being forced to make urgent financial decisions.
The critical illness insurance provider also helped Mark with additional advice and support on cancer treatment as part of the critical illness policy.
From his employer’s perspective, the benefit removed uncertainty around how to provide support. This allowed HR to concentrate on managing absence and planning temporary cover, while supporting Mark’s eventual, phased, return to work.
Story two: Recovery looks different for everyone
Following a stroke linked to an underlying heart condition, Emma, just 32, found it difficult to concentrate and suffered anxiety over the prospect of returning to her high-pressure role as a senior analyst at a professional services firm.
She was keen to return to work, but there was no clear timeframe for her recovery. She required rehabilitation and adjustments to her working arrangements, and while some support was available through the NHS and her employer, this didn’t meet all her needs.
The cash lump sum paid through the company’s group critical illness cover gave her greater flexibility. She used the payment to fund additional rehabilitation and counselling, and to make changes to her home working space to reduce fatigue. It also allowed her to temporarily reduce her hours.
For Emma’s employer, this supported a phased return to work plan by reducing the pressure to rush her back before she was ready.
In addition, it helped to reassure colleagues that support would be available to them if they faced similar circumstances.
Story three: When illness affects the wider team
The absence of a key member of staff due to illness can put added and unexpected pressure on colleagues.
Tom was a director in a small consultancy employing 25 people. After being diagnosed with multiple sclerosis, changes in his capacity to work meant that he and the consultancy faced an uncertain future.
A group critical illness policy paid out a cash lump sum, which helped him adapt his home and provided him with financial stability while he considered how best to continue in his role.
This, in turn, gave the business time to plan how it should best respond. It invested in interim management support and redistributed working responsibilities, without having to be rushed into permanent changes.
Meanwhile, fellow employees could see how Tom was being supported and this helped reassure them during a difficult period.
How group critical illness cover supports employers
Financial certainty plays an important role in how employers and employees cope with serious illness - these examples help demonstrate this.
The role that a tax-efficient cash lump sum, paid out by a group critical illness policy following diagnosis of a condition under a defined list of serious conditions, can have in helping employees manage everyday costs and recovery-related expenses cannot be underestimated.
For employers, it reduces the need for informal or ad-hoc support and offers a consistent way to respond to serious illness. This can also help them manage absence by supporting recovery and return-to-work planning, as well as giving them access to insurer guidance, information and specialist knowledge.
It should be remembered, however, that critical illness cover will invariably work best when it forms part of a wider wellbeing strategy, which addresses physical health, mental health and workplace culture.