Group Critical Illness versus Individual Critical Illness Coverage

Group Insurance
The difference between Group
Critical Illness and
an individual policy.

Group Critical Illness policies are generally tied into an employee’s group benefit plan, whereas individual Critical Illness coverage is taken separate from a company benefit plan.

The following summarizes the major differences between group and individual Critical Illness:


Group Critical Illness

1. There are no medical tests. Generally, group Critical Illness coverage is available without a medical up to a specified face amount.

2. Lower face amounts. Generally, Group Critical Illness policies are available in smaller face amounts. The larger the group, the larger the face amounts that will be available.

3. There are no return of premium options. Group Critical Illness policies do not offer a return-of-premium feature.

4. Premium guarantees. Premium on group Critical Illness policies can generally be adjusted on a yearly basis, similar to other components of a group policy. Adjustment will generally be influenced by the expense ratio of the group.


Individual Critical Illness:

1. Individual Critical Illness policies are fully underwritten based on the insured health and lifestyle profile.

2. Individual Critical Illness policies offer a much higher face amount. In many instances, that coverage is available for up to $2M.

3. Individual Critical Illness policies have a return of premium option where the insured does not become critically ill during the specified period, he or she can get a return of premium.

4. Premium guarantees. Individual Critical Illness policy premiums can be set for specified term, i.e. a 10 or 20-year term, where the premium would be level for 10 or 20 years, or a permanent policy where the premiums would be level for life.

For more details, contact us at 1-866-899-4849, or visit our Critical Illness Quote Page, or our Group Benefits Online Quote Page.



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