Group Critical Illness Insurance - The Cheaper Alternative to Keyman Insurance

If you manage a small business you'll dread theA Simon Briault, a spokesperson for the
possibility of a member of your team being beFederation of Small Businesses said, "In an ideal
taken seriously ill or dieing. Apart from theworld, small firms would be insured against
personal upset, your business would be hit hard.everything, but reality demands the businesses
Sales or production could take a dive, key skillsprioritise threats and occasionally take risks".
could be lost and the general pace of the businessBut there is a cheaper alternative. It's called Group
could fall. All this costs the business money.Critical Illness Insurance. And it's about half the
Insurance is available to offset those financialprice of normal Keyman Insurance!
risks, risks that can be especially serious forWith Group Critical Illness Insurance, the
smaller businesses. After all in smaller businessesmanagement decides which employees to insure
other employees can't be moved across to fill theand how much to insure them for. The business
gap - there's simply no one spare. So the problemthen pays the premiums and receives any lump
remains until the person either returns to work orsum payout. A claim can be made as soon as any
is replaced.of the insured employees are diagnosed with any
If the person is off sick with a serious illness suchcritical illness which is scheduled within the
as a stroke or a heart attack you simply don'tinsurance policy. As you would expect heart
know when, or if, they'll return to work. It couldattacks, strokes and cancer are the biggest three
be a month, six months even a year or more.biggest reasons for a claim but the full list of
Management is then caught in a cleft stick. Doinsured critical illnesses is much longer. For
you take on a temporary employee, contract outexample, kidney failure, meningitis, paralysis and
or recruit a permanent employee? Or are youeven blindness.
forced to tread water and wait for mattersThe important point to realise is that to make a
resolve themselves? That's risky. And how muchclaim, the insured employee must survive at least
will all this cost the business in terms of extra28 days after their critical illness is diagnosed.
overheads, lost sales and profit?(Some insurance companies have now reduced
Keyman Insurance has traditionally absorbedthis to 14 days so please check before you buy.)
these very real financial risks but nine out of tenTherefore, if the employee were to die before
small businesses still don't carry that insurance. It'sthe end of the survival period, any claim would be
either because they haven't addressed theinvalid. In that context, it's not as comprehensive
problem or they've found Keyman Insurance toas full Keyman Insurance - but at around half the
be too costly.price of there has to be some compromise!