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Actively at work

This means the employee must be in full active employment, physically and mentally able to perform all the duties associated with their normal job on the day the cover is due to start.

Additional Benefit

Cover for contributions to a pension you've set up for your employees. It can also cover your liability to pay National Insurance Contributions.

Aggregate Scheme Earnings

The total Scheme Earnings for all Insured Members.

Annual Renewal Date

The first day of each yearly accounting period.


Basic Allowance

The annual basic rate of benefit paid by the Department for Work and Pensions, after the assessment phase of the Employment and Support Allowance.

Benefit Increase Rate

The yearly increase in Member's Benefit and/or Additional Benefit (if applicable)


Deferred Period

The period between the date an insured member is first unable to work and the date we will start paying benefit.


Early Entrant

An employee who you need cover for before their normal entry date within the eligibility conditions.

Exact Cost

Premiums payable are calculated by taking account of the annual cost of cover for each member using age and gender rates. We'll adjust premiums at the next annual renewal date to allow for leavers, joiners and changes to the amount of cover. This is also known as Single Premium Costing.


Free Limit

The maximum monetary limit for which we'll normally provide cover without the need for medical evidence for each individual member.


Inception Date

The start date of the policy.


Late Entrant

An employee who didn't join the scheme at their first opportunity and you now need cover for them.

Lifestyle Event

Events in a member's life that you can agree with us (for example getting married or becoming a registered civil partner). After these agreed events, a member may then have the option to change their benefit selection under a flexible benefits package.

Lifetime Allowance The maximum amount of tax free lump sum benefits that can be paid from a registered scheme. The lifetime allowance for the tax year 2014/2015 is £1.25 million.

Limited Term

An option you can ask for under our Group Income Protection policy that provides a maximum limit on the length of time we'll pay income protection benefit for. You can choose two, three or five years.  We'll start the limited term on the day after the end of the deferred period.

Linked Claim

A second claim under our Group Income Protection policy for a member within 52 weeks after the first claim for them ended, where the absence is caused by the same incapacity. For linked claims we'll waive the deferred period for the second claim.



A person included for benefits within the Scheme.

Member's Benefit

The Group Income Protection benefit we pay to the policyholder to pass on to the Member. This is usually calculated as a percentage of Scheme Earnings.

Member's Declaration

This is a form the employee fills in to give us information about their medical history and pastimes.



The legal contract between you and us, which takes effect from the Inception Date, to insure the scheme liabilities you chose.



The scheme the employer has set up to pay the benefits promised to their employees.

Scheme Earnings

The earnings we use to calculate the scheme benefit.

State benefits

These are benefits that form part of the Employment & Support Allowance and are paid by the Department of Work and Pensions. For Schemes set up on an integrated basis we can also allow for Enhanced Disability Premium & Severe Disability Premium.

Suited Occupation

A member is incapacitated if in our opinion, an illness or injury prevents them from doing any job, which is considered to be appropriate to their experience, training or education. They are not doing any job other than one which gives rise to payment of a reduced benefit.


Work Related Activity Component

The annual rate of the Work Related Activity Component, payable after the assessment phase, of the Employment and Support Allowance payable by the Department of Work and Pensions under statutory provisions.

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