Group Term Life Insurance

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FCL stands for Free Cover Limit in the GTL policy. It is the limit up to which the insurer does not require medical tests for a grant of coverage in the policy.

 

Free cover limit FCL is determined by two parameters in the GTL policy – sum insured and employee’s age.

 

The sum insured limit states that any employee whose requested life cover limit is above the FCL sum insured limit has to undergo a medical test for a grant of the requested limit. For example, if the FCL sum insured limit in a policy is INR 2 Cr. and a senior employee of the company has requested for sum insured of INR 3 Cr., he/she has to undergo a medical test for availing INR 3 Cr. sum insured. In the condition that the employee does not undergo a medical test, he/she is covered up to the FCL limit, i.e. INR 2 Cr. We suggest that you should take the FCL sum insured limit as high as possible so that a minimum no. of employees have to undergo medical tests.

Additional Read: What is the Active at Work clause under GTL policy?

The age limit states that any employee who is over the FCL age limit will need to undergo a medical test for a grant of life cover limit. For example, if the FCL age limit in a policy is 65 years and a senior employee of the company is 67 years old then the employee will have to undergo a medical test for a grant of life cover. In case he/she does not undergo a medical test, he/she has not covered in the case his/her age is over the FCL age limit. We suggest that you should take the FCL age limit as high as possible so that senior employees do not have to undergo medical tests.

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