Glossary

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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.

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

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Deferred Period The period between the date an insured member is first unable to work and the date we will start paying benefit (for Group Income Protection policies).

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Early Entrant An employee who you need cover for before their normal entry date within the eligibility conditions.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.
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.Cover for contributions to a pension you've set up for your employees. It can also cover your liability to pay National Insurance Contributions.

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

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Inception Date 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.

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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 2018/2019 is £1.03 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.

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Member 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.Cover for contributions to a pension you've set up for your employees. It can also cover your liability to pay National Insurance Contributions.
Member's Declaration This is a form the employee fills in to give us information about their medical history and pastimes.

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

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Scheme 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.