Group critical illness insurance in 2024: Get free quotes

Group critical illness insurance in Canada provides coverage for a specified list of critical illnesses for members of a group, such as employees in a company. In the event of a covered illness diagnosis, a lump-sum benefit is paid to the insured individual, offering financial support during a challenging time.

The coverage terms and conditions may however vary among insurance providers and specific policies. If you're new to this realm, this guide is for you. Read on to explore how group critical illness insurance works, its pros and cons, and more.

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What is group critical illness insurance? 

Group critical illness insurance is a type of insurance offered through an employer or organization that provides a lump-sum cash benefit to the insured person if they are diagnosed with a specific critical illness. It is also known as group critical illness insurance coverage for employees.

Here’s how it differs from life insurance:

• Critical illness insurance generally, regardless of whether it's individual or group, is different from traditional life insurance.
• While life insurance pays out to beneficiaries upon the insured person's death, critical illness insurance pays out upon diagnosis of a covered illness, even if the person recovers.
• Group critical illness insurance specifically refers to policies offered through groups like employers, associations, or unions. 
• This contrasts with individual critical illness insurance purchased directly by the insured person.

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What are the benefits of group critical illness insurance?

Employees can use the lump-sum payment to cover expenses not covered by their regular health insurance, such as lost income, childcare or home modifications. This can ease the financial burden of a critical illness and allow you to focus on your recovery.

Similarly, it has many benefits for employers, such as:

• Improved employee morale and retention: Offering group critical illness insurance can show employees that their employer cares about their well-being, which can boost morale and retention.
• Reduced absenteeism: Financially secure employees are less likely to take time off work due to financial worries, which can benefit the employer's productivity.
• Competitive advantage: Offering this type of insurance can give an employer a competitive edge in the job market.

What does group critical illness insurance cover?

The specific group critical illness insurance coverage for employees can vary depending on the insurance provider and the policy chosen.

Here are some common critical illnesses that are typically covered by most policies:

• Major cancers: This includes a variety of cancers, such as breast cancer, lung cancer, colon cancer and leukemia.
• Heart attack: You get coverage for severe heart attacks that require hospitalization.
• Stroke: Most plans cover severe strokes that result in permanent neurological damage.
• Coronary artery bypass surgery (CABG): This is a major surgery to treat blocked coronary arteries.
• Organ failure: This can include failure of vital organs such as the kidneys, liver or heart.
• Major organ transplants: This includes transplants of organs such as the heart, lungs or kidneys.

In addition to these common illnesses, some policies may also cover other critical illnesses, such as:

• Aortic valve replacement
• Multiple sclerosis
• Muscular dystrophy
• Paralysis
• Severe burns

Additional considerations

Here are some additional things to keep in mind about the coverage of group critical illness insurance for employees:

• Pre-existing conditions: Most policies will have a waiting period for pre-existing conditions, which means you will not be covered for any critical illness that you are diagnosed with during this period.
• Severity of illness: Some policies may require the illness to meet a certain level of severity in order to be covered.
• Definitions of covered illnesses: The definitions of covered illnesses may vary from policy to policy. It is important to make sure you understand how the policy defines each covered illness.

How much does group critical illness insurance cost? 

Giving a definitive answer about the cost of group critical illness insurance for employees in Canada isn’t easy since the price tag can vary significantly based on several factors.

Here are the main factors that can influence the cost:

Employee Details

• Age: Typically, the older you are, the higher the premium.
• Health: Smokers or individuals with existing health conditions might pay more.
• Coverage amount: Choosing a larger benefit amount naturally pushes the cost up.

Policy Details

• Term: Shorter terms (like 10 years) are usually cheaper than longer ones (e.g., 30 years).
• Number of illnesses covered: Policies covering numerous illnesses tend to cost more.
• Benefits: Policies with additional features like early detection benefit or return of premium options will be pricier.

Employer Group

• Negotiated rates: Larger companies or employee associations might have negotiated lower rates with the insurance provider.
• Group size: The number of employees covered can also influence the pricing.

To give you a rough idea, here are some sample quotes:

Age Group	Monthly Premium Range ($25,000 Coverage)	Additional Monthly Cost per $25,000 Increase	Smoker Premium Increase
25-35	$10 - $25	1.5x - 2x	10% - 20%
35-45	$20 - $40	1.5x - 2x	10% - 20%
45-55	$30 - $60	1.5x - 2x	10% - 20%
55+	$50 - $100+	1.5x - 2x	10% - 20%

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How to get a better idea of the cost?

Here's what you can do to get a better idea of the cost:

1. Talk to your HR department: They should have information about the specific group critical illness insurance plan offered by your employer, including costs for different coverage levels.
2. Contact the insurance provider: The insurance provider offering the plan should be able to provide you with a personalized quote based on your individual details.
3. Use online quote calculators: Some insurance providers and comparison websites, such as HelloSafe, offer online quote calculators that can give you a rough estimate of the cost based on your general information.

Remember that cost isn't the only factor to consider when choosing a group critical illness insurance plan. Carefully review the coverage details, benefit options and exclusions before making a decision.

What are some good options in Canada?

Several top providers offer group critical illness insurance in Canada, and the best option for you will depend on your specific needs and employer's situation.

Here are the top 5 reputable providers to consider:

1. Manulife: A leading life insurance provider with a comprehensive critical illness insurance offering, including group plans for employers. Manulife Critical Illness Insurance has a strong reputation for financial stability and a well-developed network of advisors.

2. Sun Life: Another major player in the Canadian insurance market, Sun Life offers competitive group critical illness plans with diverse coverage options. Sun Life Critical Illness Insurance is known for its innovative products and focus on customer service.

3. Canada Life: Formerly Great-West Life, Canada Life Critical Illness Insurance has a long history of providing insurance solutions in Canada. Its group critical illness plans are available through various employer organizations and offer flexible benefits options.

4. RBC Insurance: Part of the Royal Bank of Canada, RBC Insurance provides group critical illness plans through employers and associations. RBC is known for its strong financial backing and wide range of products.

5. Blue Cross: While primarily known for health insurance, there is also Blue Cross group critical illness insurance through partnerships with employers and associations. Blue Cross is known for its extensive network of healthcare providers and focus on preventive care.

In addition to these large providers, several smaller regional insurance companies offer group critical illness insurance in Canada.

Is group critical illness insurance worth it?

Whether group critical illness insurance is worth it for you depends on several factors, and there's no one-size-fits-all answer.

Here are its pros and cons to help you decide:

Pros

• Financial safety net: Provides a lump sum payment if diagnosed with a covered critical illness, helping manage expenses beyond medical bills, like lost income, childcare or home modifications.
• Attractive benefit: Can make your employer's benefits package more appealing, potentially enhancing employee morale and retention.
• Relatively affordable: Group plans often offer lower premiums than individual policies due to group buying power.
• Coverage for non-medical expenses: Covers costs not typically covered by health insurance, offering greater financial flexibility.

Cons

• May not be necessary: If you have adequate savings, existing life insurance or a strong support network, you might not need the additional coverage.
• Cost still involved: Premiums still represent an ongoing expense, and you might not utilize the benefit.
• Limited coverage: Policies only cover specific critical illnesses, excluding other potential health issues.
• Pre-existing conditions: May have waiting periods or exclusions for pre-existing conditions.

Ask yourself: Can you comfortably afford the ongoing costs? Does the coverage align with your potential concerns and financial needs?

If yes, critical illness illness may be a good option for you.  Talking to your employer's HR department and a financial advisor can help you make an informed decision based on your specific circumstances. Remember, there's no right or wrong answer, and choosing what's best for you and your family is key.

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