Group Critical Illness Insurance - The Cheaper Alternative To Keyman Insurance.

For individuals who are in a professional field like law or teaching, the cost of keyman insurance premiums is a major financial burden. In addition to high annual limits, premiums are often expensive and difficult to obtain. Group Critical Illness Insurance (also known as COBRA) has been designed as an alternative for those with long-term illnesses or injuries where employers were originally covered by keyman insurance. This post will discuss what Group Critical Illness Insurance is and how it compares to keyman insurance.

What is Keyman Insurance?

Keyman insurance provides financial protection for individuals if they are unable to work due to illness or injury. The policyholder, who is referred to as the 'keyman', names someone who would take over their position in the event that they cannot perform their duties. The individual(s) named by the keyman can be a spouse or partner, common-law partner, child, employee, etc. Legal costs may be covered by the insurance provider in the event that lawsuits are launched against the insured due to injury or death.

Keyman insurance premiums can range from $1,500 to $5,000 per year depending on your profession and which company you choose.

What is Group Critical Illness Insurance?

Group Critical Illness Insurance is a form of professional indemnity insurance designed to provide financial protection for individuals who are unable to work due to illness or injury. Unlike keyman insurance, group critical illness insurance does not replace the individual's current employment but rather provides coverage for any lost wages and legal costs in the event that the insured individual becomes unable to perform their duties. Group Critical Illness Insurance also provides some medical coverage and in some cases, coverage for accidental death and dismemberment.

Since it was first introduced in 2000, roughly 30% of all health plans offered by large Canadian employers have been group critical illness insurance policies. With over 6,700 insurance providers in Canada, group critical illness insurance has become an extremely popular type of insurance that is easy to obtain.

Group critical illness insurance premiums are significantly cheaper than keyman insurance. Some of the leading providers will offer group critical illness insurance for only $125 per year with an annual limit of $10,000*. However, there may be limitations as to which illnesses can be covered by Group Critical Illness Insurance such as a cut off age or pre-existing medical conditions.

For those who are unable to obtain keyman insurance coverage due to pre-existing medical conditions or other restrictions from their employer's group health plan, Group Critical Illness Insurance is a viable alternative that provides similar protection.

Medical care in Canada is expensive and therefore, critical illness insurance is an important part of any comprehensive insurance plan. With the high cost of keyman insurance, Group Critical Illness Insurance provides a much cheaper alternative that can also provide financial protection against loss of wages and legal costs if you are unable to work due to illness or injury.

Group Critical Illness Insurance can be obtained through most Canadian employers or directly from the insurance provider. In addition, many individuals who require additional medical coverage may have a private health plan that provides coverage for long-term illnesses. If you require additional information regarding Group Critical Illness Insurance or other types of critical illness insurance, feel free to contact us .

*Disclaimer: This post does not constitute financial advice. The information provided in this post is general in nature. As such, the author assumes no vested interest and no responsibility for losses that may arise from the use of this information. The author shall not be liable for any direct or consequential loss arising from any use of this information either directly or indirectly.

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Good write up! I always like hearing stories about people who have been successfully saved by critical illness insurance, since we're not able to get it ourselves because of these expensive premiums :( Thanks for posting this! Reply Delete

Thanks! I'm glad you found it informative :) Delete

I was just reading your article and could not agree more! I'm currently 55 and my husband is 62... we've only just found out that there is a Group Critical Illness policy available (CIGNA) for us! It's so wonderful that it has come to light and my husband and I are looking forward to trying it out... thank you for letting people know about this! Reply Delete

Hello I was wondering if you could help me please. My employers health have done the group critical illness insurance and want to know how much it will be per year. I'm concerned because the premiums are too much for me...Please help thank you. Reply Delete

Hi there, thanks for commenting! Glad to hear that you're excited about the prospect of getting critical illness insurance :) I've written a post on how much group critical illness insurance would cost per year . Hope it helps :) Delete

Sickpay.ca is an inexpensive way to get the Continued Health and Disability Benefits you need in the unfortunate event that you are left unable to work by an unexpected illness or accident. Sickpay.ca provides a contingency income for eligible Canadian employees when they are unable to work due to sickness or injury, providing them with a guaranteed income by paying out a portion of their salary each week until such time as they are able to return to work. Sickpay.ca can help to provide income certainty in the event of an unexpected illness and provides peace of mind for both employers and employees who require continuing income support. Sickpay.ca can be provided through group critical illness insurance and is a great alternative to government benefits such as Employment Insurance (EI), which are not always available for those with pre-existing medical conditions. Sickpay.ca allows you to get the benefits you need without having to worry about qualifying for benefits through other means, while giving you complete peace of mind knowing that your income will be paid in full even if you are unable to return to work during the restriction of sickness or injury. Sickpay.ca is a guarantee that you are provided with a high level of income certainty in the event you are unable to work due to illness or injury, with Sickpay.ca covering your entire household for life. Sickpay.ca payments will continue regardless of the length of your sickness or injury and can be requested at any time from when you first become unable to work until such time as you return to work, provided that your medical condition allows it. Sickpay.ca payments will be made regardless of whether or not you have income support through employment insurance or any other source, providing an additional level of financial security in case you are unable to return to work prior to the end of your contract; Sickpay.

Conclusion:

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