Critical Illness Insurance:
Financial Protection for
Life-Changing Conditions.
Critical Illness Insurance is an employee benefit designed to provide financial security for your dependants if the worst were to happen.
It offers employees a tax-free lump sum payment if they are diagnosed with one of a number (usually around 40) of the insurer’s pre-defined critical illnesses, such as cancer, stroke, or heart attack. Employees can use the money to cover medical expenses, pay off debts, or make necessary lifestyle adjustments.
Employees covered under a Critical Illness Insurance policy are eligible for a lump-sum payment if they meet the criteria for a covered condition (which was diagnosed after joining the scheme).
The amount of coverage can vary, with plans typically offering anything from £25,000 to £250,000+. This financial safety net provides employees and their dependants peace of mind, ensuring they can focus on recovery and rehabilitation rather than financial strain.
Unlike Private Medical Insurance or Cash Plans, Critical Illness Insurance isn’t routinely offered as a core benefit and tends to be available only to senior executives or employees with long service records. This selective offering reflects its role as a high-value, niche benefit. However, Zhoosh is on a mission to change that and make it easier for companies to offer this benefit to their entire workforce…
Zhoosh understands that while not all employers can offer Critical Illness Insurance as a core benefit, many appreciate its value and wish to make it accessible to their teams. That’s why we enable SMEs to include this as part of their flexible benefits package, even for businesses with fewer than 50 employees—a feature that sets us apart as one of only a small number of brokers offering this speciality benefit.
Through our platform, employees can use their flex allowance to tailor the benefits they select, ensuring the selections meet their individual needs. This approach empowers employees to prioritise their financial protection without the policy becoming a budget consideration for the employer.
Critical Illness Insurance is a P11D benefit. The value of the cover must be reported to HMRC and is subject to taxation. While this adds a minor tax consideration, the reassurance and financial security provided by the benefit make it highly attractive to those who opt to join the scheme.
Why should you offer this employee benefit?
For employers, offering access to Critical Illness Insurance (CIC) demonstrates your commitment to your employee’s financial stability. The impact of a critical illness can be devastating, and having access to the safety net that CIC provides can make a huge difference in employees’ lives.
Zhoosh’s SME clients especially value the ability to offer this benefit as part of a flexible package, enabling their teams to access high levels of coverage without imposing a significant cost burden on the business. For employees, accessing this rarely offered benefit to protect themselves and their families is an invaluable option that enhances loyalty and engagement.
