Group Life, Income Protection and Critical Illness contracts usually include an element of Guaranteed Cover (which insurers refer to as the Free Cover Level).  This is the benefit level that all scheme members are offered without having to answer health or lifestyle questions.  A member who’s benefit entitlement is higher than the insurer’s Free Cover Level would still have to provide health/lifestyle information if they want to increase their benefit to its full potential value. 

A guaranteed benefit will not usually be more than 10x an employee's annual salary (5x in the case of Critical Illness).  However, it may not be offered to;

v            Firms involved in hazardous occupations or business activities.

v            Schemes where there is no uniform eligibility or benefit basis, or where membership is voluntary.

v            Potential members who are on sick leave when your scheme starts.

v            Potential members who do not join your scheme when first eligible.

v       A potential member who has been previously declined insurance because of their health history.

If any of your employees have been medically underwritten in previous employment charged higher premiums because of ‘poor health’ we will usually be able have these loadings removed when they join your group scheme (up to your scheme’s Free Cover Level).