An increase in the prevalence of high deductible health plans and health savings accounts has made employees more aware of their group medical costs than ever before. At the same time, employer compliance with tighter plan design restrictions under the Affordable Care Act spotlights the need for a financial backstop to help pay for catastrophic claims. This is especially true since the ACA last year ended annual and lifetime benefit caps.
While industry experts say critical-illness insurance offered on a voluntary basis can plug that coverage gap, there’s still a need for greater awareness of this product, which often is confused with other benefits. “If your employees aren’t aware that the product exists or don’t really know what it is when they see their list of benefits, they’re not going to elect it when given the choice,” cautions Karen Terry, assistant managing director of insurance research at LIMRA.
