Critical Illness Cover
This benefit provides a lump sum on the diagnosis of one or more of a number of specific medical conditions. This benefit goes hand in hand with Long Term Disability Income.
Utilising the two benefits - in a worse case scenario - a lump sum would be payable to relieve some of the financial pressure (i.e. clear down or reduce the mortgage, or, to make modifications at home for wheel chair access) whilst the income helps to maintain a standard of living. In insurance terms, this is a comparatively new risk.
The cost of the cover is dependent on the amount required, generally a fixed amount (i.e. £100,000) or a multiple of basic salary. The cost of such cover is an allowable business expense for the Company, and is not treated as a benefit in kind in the hands of the employee.