When group critical illness is vital for financial wellbeing
It’s widely accepted that the cost of living crisis has strained employee finances, increased stress and affected workplace performance.
It has also led employers to adapt their benefits to support employees, with a particular focus on those that offer immediate relief and long-term support.
Group critical illness (GCI) cover is increasingly considered valuable within a financial wellbeing strategy. It provides employees with a crucial financial safety net during a health crisis, helping to reduce stress at a difficult time and allowing them to focus on recovery.
For employers, this can translate into improved morale, higher retention and a stronger reputation as a caring employer – key to attracting and retaining talent. The value of critical Illness cover is not just financial but also psychological, as it helps alleviate anxiety about the potential financial disruption caused by a serious illness.
Critical illness as part of a financial wellbeing strategy has clear benefits for both employers and employees.
Employees
Peace of mind: Knowing there is financial support in a time of crisis helps reduce the stress and worry that accompany a life-changing diagnosis, allowing the employee to focus on their health and family.
Financial security: A critical illness can lead to unexpected bills or an inability to work, causing financial strain. While company sick pay or income protection can help, a critical illness benefit provides a tax-free lump sum to cover expenses such as home modifications, clearing debt, or supplementing household income if the employee is unable to work.
Flexibility: While the benefit can be used to maintain financial security, it can in fact be used for any purpose the employee chooses, including paying for private healthcare treatment or taking a holiday to rest and recuperate.
Additional support: Group critical illness policies often offer more than a financial safety net. Depending on the insurer, employees (and often family members), whether claiming or not, usually have access to value-added services that support wider wellbeing, such as:
- Employee assistance programmes (EAPs)
- Virtual GP access
- Second medical opinion services
- Rehabilitation support
Employers
Reduced absenteeism: Employees with critical illness cover are better equipped to manage finances if the worst happens, supporting a quicker, more confident return to work and reducing the risk of leaving due to financial stress.
Improved morale and engagement: When an employer demonstrates a commitment to wellbeing, it tends to boost morale, enhance job satisfaction and improve productivity.
Enhanced talent attraction and retention: In the current financial climate, salary remains important but a strong employee benefits package – whether employer-funded or voluntary – that includes critical illness cover can provide a competitive edge in attracting and retaining high-performing employees.
Raising your company profile: Prioritising employee wellbeing sends a strong message to current and prospective employees that the organisation is supportive, caring and responsible.
Summary
In a cost of living crisis and a competitive jobs market, employers that strengthen financial wellbeing support – including critical illness cover – recognise that it is not just a ‘nice to have’ but a key pillar of a comprehensive financial wellbeing strategy.
Supplied by REBA Associate Member, Barnett Waddingham
Barnett Waddingham is proud to be a leading independent UK professional services consultancy at the forefront of risk, pensions, investment, and insurance. We work to deliver on our promise to ensure the highest levels of trust, integrity and quality through our purpose and behaviours.
