Group Term Life Insurance

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FCL stands for Free Cover Limit in the GTL policy. It’s the limit up to which the insurer doesn’t require medical tests for a grant of coverage in the policy. The significance of FCL in a GTL policy lies in its role as the maximum amount of coverage that can be provided to an individual without requiring a medical examination.

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

The sum insured limit specifies that employees must undergo a medical test to receive a life cover limit exceeding the FCL sum insured limit. For example, if the FCL sum insured limit in a policy is INR 2 Cr, and a senior employee requests 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 covers up to the FCL limit. The limit is INR 2 Cr. We suggest taking the FCL sum insured limit as high as possible to minimize the number of employees undergoing 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 needs to undergo a medical test. For a grant of life cover limit. For instance, if a policy has an FCL age limit of 65 years and a senior employee is 67 years old. They must undergo a medical test to get life cover. In case he/she does not undergo a medical test. If his/her age exceeds the FCL age limit, he/she will not be covered in this case. 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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MBA Finance

Varun has established itself as a knowledgeable and reliable expert in the field with 8 years of experience. Specializing in group-term life insurance, they have dedicated their career to helping businesses and individuals navigate the complexities of insurance products and services. Currently writing for SecureNow, he produces insightful blogs and articles that demystify group-term life insurance, offering practical advice, industry updates, and strategic insights. Their deep understanding of the insurance landscape and talent for clear and engaging communication make their content invaluable for both seasoned professionals and newcomers alike.