Group critical illness pays the sum insured on diagnosis of an illness listed in the policy. The money is the employee’s to use as they need, whether for treatment, living costs or time off work.
Most plans use the Life Insurance Association’s standard definitions for the illnesses they cover. The number of covered conditions and the stage of illness that qualifies vary between plans.
Cover is either accelerated, which pays part or all of the term life sum insured early and reduces what is left, or additional, which pays on top of term life. Many insurers only offer critical illness together with group term life, and some tie its sum insured to the term life sum.
Some plans have a waiting period after cover starts before certain illnesses can be claimed, and higher sums insured may need a health declaration.