Critical illness insurance in Bloomfield Hills that pays when the diagnosis arrives
Critical illness coverage pays a lump sum when an employee is diagnosed with a covered condition, such as cancer, heart attack or stroke. The money goes to the employee to use however they need. It sits alongside our accident insurance and other voluntary lines.
A serious diagnosis brings costs the medical plan never touches: travel for treatment, lost income for a spouse who becomes a caregiver, the deductible and out-of-pocket maximum arriving in the same month. Critical illness coverage is built for that gap.
Critical illness insurance
Employees choose a benefit amount at enrollment, usually in steps, and pay for it through payroll. Coverage up to a set amount is often available without health questions during the enrollment window. Most plans pay a partial benefit for less severe conditions and some add a wellness screening benefit.
Is it worth it with a high-deductible plan?
It is where it earns its keep. An employee on a high-deductible plan can face the full out-of-pocket maximum after a diagnosis, and the lump sum is often sized to cover exactly that. Pair it with the HSA strategy rather than treating it as a separate decision.
What should we check before choosing a plan?
Which conditions are covered and how each is defined, whether pre-existing conditions are limited in the first year, whether the benefit pays again for a second diagnosis, and whether employees can keep the coverage if they leave. Those details differ more between carriers than the price does.
Common questions
Does critical illness insurance replace our medical plan?
No. It pays cash to the employee on diagnosis; the medical plan still pays the providers. It pays the same amount whatever the medical bills are, and it does not reduce what the medical plan pays. The medical plan’s network, deductible and out-of-pocket rules stay exactly as they are.
Do employees have to answer health questions?
Often not, up to a guaranteed amount during the enrollment window. Higher amounts or late enrollment may require them. The no-questions amount usually applies only when the employee enrolls in the first eligible window, so the timing matters. We make sure employees know the window before it closes.
Who pays for it?
Usually the employee, through payroll. Some employers pay for a base amount and let employees buy more. The tax treatment follows the premium. If employees pay after tax, the lump sum is generally tax-free. If the premium is paid pre-tax or by the employer, the benefit is generally taxable, which is worth deciding deliberately.
Talk to us about critical illness insurance in Bloomfield Hills
Book a 30-minute call and we will walk through critical illness insurance in Bloomfield Hills for your team. Visit us at 41000 Woodward Avenue, Suite 350 East, Bloomfield Hills, MI 48304, or call 248.370.8853.
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