Critical Illness Coverage Lets Employees Concentrate on Recovery
What is Critical Illness Insurance?
Who Needs Critical Illness Insurance?
Why Buy Critical Illness Insurance?
For more information
Sources

Advances in medicine mean employees today are much more likely to suffer some form of critical illness than they are to die, and many are more concerned about paying for treatments of such illnesses than of dying from them. In fact, a study conducted by Community Oncology Alliance found that 69 percent of Americans are more concerned about paying for treatments if diagnosed with cancer, than actually dying from the disease. 1

What is Critical Illness Insurance?

As a benefits decision-maker, you understand the importance of critical illness coverage. However, most people arguably do not. Americans are well-versed about the availability of, and need for, major medical, home and vehicle insurances. But many simply don’t know that critical illness coverage exists, never mind the financial relief it can offer to those who suffer a critical illness.

Critical illness insurance is a way for employees to stay ahead of the medical and out-of-pocket expenses that can accompany specified medical events. With an Aflac lump sum critical illness insurance policy, 2 a lump sum benefit is payable upon initial diagnosis for covered events. Covered events may include:

  • Heart attack
  • Stroke
  • Paralysis
  • Renal failure (end-stage)
  • Coma
  • Major human organ transplant

Who Needs Critical Illness Insurance?

When covered critical illnesses happen, employees can rest easier knowing they’ve taken an important step toward helping protect their finances. Receiving a lump sum payment helps them concentrate on recovering, not on how to pay for the expenses that accompany illness.


Consider this – One in two men will get cancer in his lifetime. One in three women will get cancer in her lifetime.3 Every 34 seconds an American has a heart attack. Every 40 seconds someone suffers a stroke.4

Why Buy Critical Illness Insurance?

With new statistics and projections about the likelihood of suffering from a critical illness, there has never been a better time to offer supplemental voluntary benefits for these illnesses at the worksite. As you evaluate, choose and communicate your benefits offerings to employees, it is important to convey the potential financial impact of being diagnosed with a critical illness without adequate voluntary insurance in place.

For Example
A study of wage-earner cancer patients with no critical illness insurance shows the impact of going without:
  With No Ci Insurance With Ci Insurance5
Used up all or most of their savings 46% 22%
Had to borrow money from relatives 30% 10%
Unable to pay for necessities (food, heat, housing) 41% 7%
Declared bankruptcy 6% 3%

The high price tag associated with critical illness affects a company’s bottom line as well. Workers who suffer from a critical illness also suffer from financial distress, which can often lead to absenteeism, distraction while at work, and a general sense of anxiety that is difficult to leave at the door.

To Whom It May Concern,

I applied for several Aflac insurance policies through payroll deduction at my place of employment. Every so often we had claims processed, mostly accidents; the benefit checks we received were quite helpful. When my employer stopped administering payroll deductions for Aflac, I was informed by my Aflac agent that I could take my policies on a direct basis at the same payroll rate. That is what we did and I am so glad we did for we experienced an event that demonstrated the real value of Aflac.

In September of 2012, my husband, who had no family history of heart disease and who was perfectly healthy, had a Heart Attack. We live in rural Wyoming, so he was immediately air lifted 120 miles away to a bigger medical facility, where he spent two nights in the ICU. We were amazed at the out-of-pocket costs, even though it was a found to be a "mild" heart attack.

My Aflac specified health event/ critical illness policy processed claims for initial Diagnosis, air ambulance, ICU and lots of other smaller things. The critical illness policy was wonderful. He was prescribed physical therapy in the weeks after his heart attack. We were totally amazed when we learned the policy continued to process claims for continuing care such as his physical therapy. To do physical therapy he had to travel 52 miles round trip, meaning he had to take afternoons off from work, three times a week. The benefit checks we received were very helpful in paying for gas and lost wages.

I am so glad I kept my policies and know that everyone needs to apply for Aflac.

Sincerely,
Cathy Dale
Riverton, Wyoming

According to a recent survey,6 when asked who they consult prior to making changes to their benefit plans, 81 percent of HR/benefits managers said they talk with their broker or third-party administrator. As brokers fill this role as advisor, be sure to ask how critical illness insurance works side-by-side with major medical plans, picking up where most major medical plans leave off – offering cash benefits to help pay for many experimental treatments or other out-of-pocket medical costs.

For More Information

To learn more about how voluntary critical illness coverage can benefit you or your employees, visit: aflac.com/ciplan. To see how much a critical illness can cost even if you or your employee has major medical insurance, go to the Real Cost Calculator on aflac.com/realcost.

Sources:


1Community Oncology Alliance, Opinion Research Corporation survey conducted June 26-30, 2009.
2For more information about the policy benefits, limitations, and exclusions, please contact your Aflac insurance agent/producer for details. Coverage and benefits may vary by state. Policy may not be available in all states. In Arkansas, Policy A72100AR; in New York, Policy NY72100, in Oregon, Policy A72100ORR; in Virginia, Policy A72100VA.
Not applicable in Arizona, Idaho, New Jersey, Oklahoma, Pennsylvania, South Dakota, Texas, West Virginia, Wyoming, and Virgin Islands.
3American Cancer Society, Cancer Facts and Figureswww.cancer.org/acs/groups/content@epidemiologysurveilance/document/aspc-031941.pdf, accessed on March 7, 2012.
4American Heart Association, Heart Disease and Stroke Statistics – 2011 Update, cic.ahajournals.org/content/123/4/e18.full, accessed on March 7, 2012.
5 USA Today/Kaiser Family Foundation/Harvard School of Public Health, National Survey of Households Affected by Cancer.
6JHA and Employee Benefit News surveyed 4,500 HR/benefits managers for their “2010 Employer Buying Intentions Report.”
Coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.