Group Health Insurance

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What is the significance of FCL in GTL policy?

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

Free cover limit is determined by two factors – sum insured and employee’s age.

The sum insured limit is related to the amount to be insured. It states that any employee whose requested life cover limit is above the FC has to undergo a medical test. This test is needed for the grant of the requested limit. ,

Example: Let’s say the FCL sum insured limit in a policy is INR 2 Cr. However, a senior employee of the company has requested for sum insured of INR 3 Cr. Now, he/she has to undergo a medical test for availing the said sum.. If the employee does not undergo a medical test, he/she is covered up to the FCL limit, i.e. INR 2 Cr. Hence, it is suggested that the FCL sum insured limit be kept as high as possible. Therefore, a minimum number of employees has to undergo a medical test.

The age limit is related to the age of the insurer. It states that any employee who is over the FCL age limit will need to undergo a medical test for the grant of life cover limit.,

Example: Suppose the FCL age limit in a policy is 65 years. Now, a 67-year-old senior employee of the company wants to have a life cover.. To have that, the employee will have to undergo a medical test. If he/she does not undergo a medical test, he/she will not be covered. Hence, it is suggested that the FCL age limit be kept as high as possible. Consequently, the senior employees would not have to undergo a medical test.