- Skip to content [Accesskey 'S']
- Skip to navigation [Accesskey 'N']
- Go to Home page [Accesskey '1']
- Go to Site Map [Accesskey '3']
- Go to Search page [Accesskey '4']
- Go to Help page [Accesskey '6']
- Go to Terms & Conditions page [Accesskey '8']
- Go to Contact Us page [Accesskey '9']
- Go to Access Key Details page (Accessibility information) [Accesskey '0']
What is a free limit?
A major advantage of a group arrangement is that members below the free limit don’t normally have to be medically underwritten. The maximum free limit is different for all our Group Protection products. To find out what the maximum free limit is for our other products, you should visit the ‘free limit explained’ section for Group Life Assurance and Dependants’ Pension and Group Critical Illness Cover.
| What does this mean? | We can provide cover up to a certain amount without the member having to provide medical evidence about their health and pastimes. |
| How it works | We’ll set the free limit when we quote for a scheme. The free limit will depend on the number of eligible members joining and the level of benefit entitlement. It will also depend on whether the eligibility conditions include membership to a pension scheme, where membership is voluntary. If we don’t know this when we produce our quote, we’ll assume that at least 75% of eligible employees will have joined the pension scheme at the policy start date. We’ll reduce the free limit we quoted if this is not the case. We’ll usually set it as an amount of scheme earnings to make it easier to identify members who will need to provide medical evidence because their benefit level is more than the free limit. |
| Maximum free limit | £120,000 scheme earnings. We’ll tell you what the free limit is when we send you a quote. |
Free limit based on number of members in a scheme
| Number of members (N) | Free limit formula (benefit) |
|---|---|
| Under 10 | Nil |
| 10 - 40 | £3,000 x N or 10% aggregate scheme earnings if lower |
| 40 + | £120,000 or 10% aggregate scheme earnings if lower |
Free limit based on scheme size
| Number of members | Free limit (benefit) |
|---|---|
| Under 10 | Nil |
| 10 | £30,000 |
| 20 | £60,000 |
| 30 | £90,000 |
| 40 | £120,000 |
| Or 10% of aggregate scheme earnings if lower. | |
How useful did you find this page?
We may record and monitor calls. Call charges will vary.
Your recently viewed items
You need javascript enabled for us to remember your Recently Viewed Items.
You might also be interested in...
WorkSave Pension Plan
A new generation of pension, with a broad range of investment options.
Solution zone for advisers
We’ve developed a suite of marketing tools to help you deliver protection solutions to your clients.
Managing absence with Group Income Protection
Download the Group Income Protection absence management interactive guide.
Workplace Benefits
