Group CI vs Individual Non-Cancelable Critical Illness Coverage

Compare your Group Critical Illness Insurance vs Individual Non-Cancelable CI Coverage

Group Critical Illness vs. Individual

Important areas to consider Group Individual
Benefit amount Ranges from $10K – $250K Ranges from $10K – $2 Million
Underwriting NEM’s up to $100K, medically underwritten above NEM’s Medically and financially underwritten
Covered Conditions 3 or 4 base, ~23 w/ enhanced coverage 3 base, ~26 w/ enhanced coverage
Flexibility Extremely limited.  ER decides Tailored to meet individual needs ie. return of premium, decreasing benefit, second event, graded premiums, etc.
Ownership of plan Owned by the company, you’re the “certificate” holder Owned by the individual
Deductibility of premiums Employer can deduct premiums An incorporated business can deduct premiums for individual coverage
Premiums Renewable type contract.  Premiums are not guaranteed.  Annually renewed based on demographics and volume of the group Non-Cancellable contract.  Premiums are guaranteed never to change for the lifetime of the contract
Contract Renewable type contract. Not guaranteed. Non-Cancellable contract.  Guaranteed never to change, unless requested by owner, up to age 65
Taxability Benefits are received tax-free Benefits received are tax-free
Supplementary Benefit None 15% of benefit amount up to $50K for listed conditions
Portability No.  Coverage is lost when insured leaves that employer/association Yes, fully portable.  Stays with owner for life of the contract
Waiting Period 30 day survival, 90 day Paralysis & LOIE 30 day survival, 90 day Bacterial Meningitis, LOIE, Paralysis, 180 day Loss of Speech
Dependent Coverage Available under covered ee – $10K spouse, $5K child Only available as individual contract