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In addition to major medical health benefits, benefits like disability, group life insurance, dental and vision have become part of the standard benefits mix. These products help round out an employee’s benefits program and are increasingly expected by workers today. In fact, 95 percent of companies offer dental and 83 percent offer vision, according to a 2014 SHRM survey While these benefits are vital, they are only a piece of the puzzle when it comes to financial protection.

Windsor Strategy Partners recently conducted a study that analyzed benefits data for a married 45-year-old male with two children. The study found that he had a 1 in 10 chance of having a critical illness diagnosis which could cost up to $34,000. Based on this example, it is clear that a critical illness insurance policy would be a wise investment to protect an individual from an unpredictable major health care exposure. Yet, while most companies offer dental and vision, only 30 percent of companies offer critical illness plans to their employees.

The task before each of us in the industry today is to assist in changing perceptions as it relates to benefits and financial risk. The idea that dental and vision coverage makes a benefits plan more robust has been ingrained into people’s minds for years. Now we need to educate them with facts and data about critical illnesses so they can make more informed decisions that will lead to better financial protection.

The takeaway here is that although vision and dental are important to overall wellness, critical illness provides an important layer of protection that your clients may not have considered. I am proposing that brokers assume the role of a financial advisor when looking at benefits plan designs and helping clients understand the correlation between significant financial risk and benefits selection.

A simple solution

A voluntary critical illness insurance policy plan can go a long way to helping provide employees financial protection when an unexpected diagnosis occurs. With cash benefits ranging from $5,000 to $50,000 paid directly to the employee, this voluntary coverage could substantially temper the total cost of an unexpected illness. In today’s landscape, where health care costs continue to rise and finances are scarce, your clients may see additional value in contributing to a critical illness or hospital plan for their employees. This is particularly true when you consider the fact that it has been reported that 52 percent of individuals have less than $1,000 in savings. An unprotected critical illness could very easily lead to financial ruin.

The chance of being diagnosed with a critical illness is very real, just as real as the chance that your client’s employees may not be able to survive financially without additional support in their benefits package. Critical illness plans help provide employees additional protection to help make sure when they’re diagnosed with a critical illness that their finances pull through, too. For years, voluntary benefits have been kept in the “detached garage” of benefits. In the house, you find major medical in the living room, life and disability in the dining room, and dental and vision in the kitchen. You have to walk out of the benefits house and into the detached garage to find voluntary benefits such as critical illness. It’s time we bring these important benefits into the house, stop thinking of them as voluntary and realize that they are fundamental benefits.

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The link between financial risk and benefits selection

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