The 5 most common mistakes HR managers make when selecting benefits
Home The 5 most common mistakes HR managers make when selecting benefits
Bundling CI with other employee health benefits vs implementing a stand alone CI plan
Bundling Group Critical Illness insurance covers the hidden costs associated with other benefits. Stand alone GCII eliminates the claims loss ratio impact on benefit pricing because it is individually priced. Reference: Expert witness Critical illness insurance disputes R.E. Gilbert 2013
Settling for a CI plan that has poor definitions that wont pay at claim time
The single most important consideration when purchasing Group critical illness insurance is the strength of the policy definition wording. They determine if and when a claim will be paid. The wording should be medically and legally sound. Not all plans are the same. Reference: Expert witness critical illness insurance disputes R.E. Gilbert 2013
Over spending on benefits such as life and disability insurance
In the 1920’s when employers started implementing benefit plans the focus was on protecting employees from catastrophic financial loss. Today modern medicine has changed the way we view life threatening illnesses and the possibility of survival. Reference: Great West Life data 2012
Waiting for renewal of employee benefits to implement C.I.I
If you are purchasing group critical illness insurance, it should be implemented on a stand alone basis separate from other benefits. Diagnosis rates are alarmingly high in Canada, implementing immediately will shorten any waiting period associated with pre-existing conditions.
Not providing easy to understand benefit literacy and claims procedure
Employees are looking for ease of use with as little thinking as possible. Critical illness insurance provides a lump sum tax free settlement should an employee encounter a medical diagnosis that is covered. Claims procedures should be seamless, easy to use with as little thinking as possible.