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Prudential Research & Perspectives Our original research and thought leadership provide vital insights into important issues for our clients, financial professionals, policymakers, and the general public.

Critical Illness Insurance: On the Road to Financial Wellness

Critical illness insurance

  • Provides a lump sum to claimants diagnosed with a critical illness which can be used for any purpose.
  • Generally covers heart attacks, cancer, and strokes, but employers may have flexibility to customize which illnesses they want to cover
  • Is intended as a complement to health and disability insurance, not as a substitute

Developments in the health care market have created a growing financial gap for millions of working Americans, a gap often exacerbated by the out-of-pocket medical and non-medical expenses they can incur in association with an unforeseen health event. To help employees bridge the gap, employers increasingly are offering voluntary benefits programs, such as critical illness insurance.

Momentum is growing behind the concept of workplace supported financial wellness to help reduce employees' financial stress. Financial wellness programs may involve helping employees gain a measure of control over their financial situation, make progress against financial goals, and protect against financial risks. With respect to financial protection, Prudential highlights four key risks that are difficult to predict and may have significant financial consequences during the working years and in retirement:

  • Loss of income due to premature death
  • Loss of income due to illness or injury
  • Out-of-pocket medical and non-medical expenses incurred in the event of a critical illness or an accident
  • Outliving assets in retirement

This paper (PDF) explores how critical illness insurance can help improve financial wellness by mitigating the out-of-pocket expenses risk.

Download Critical Illness Insurance: On the Road to Financial Wellness(PDF) to find out more.



The Prudential Insurance Company of America and its affiliates, Newark, NJ