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Group Critical Illness CoverFrequently asked questions

Employee booklet

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In the UKEvery two minutes someone is diagnosed with cancer Source: Cancer Research UK, January 2014

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Friends Life Group Critical Illness CoverA critical illness can strike at any time. The good news is that with medical advances, people are now more likely to survive a critical illness. This can lead to people having to undergo prolonged periods of treatment and recovery which can impact an individual and their loved ones both emotionally and financially.

Friends Life Group Critical Illness Cover

Your employer has taken out a group critical illness policy with Friends Life which may provide financial support if you are diagnosed with one of the covered medical conditions or undergo one of the listed operations and then survive for at least 14 days. In order for benefit to be paid, the medical condition or operation must meet the definition in the policy conditions. This booklet provides answers to frequently asked questions about group critical illness cover.

This document is for information and is not a definitive guide to group critical Illness cover. Before deciding whether to join the scheme, you should read the other documentation regarding the cover which is held by your employer.

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What benefit does critical illness cover provide?

A group critical illness policy provides a tax-free lump-sum benefit if you are diagnosed with one of the specified medical conditions or undergo one of the listed operations and survive for at least 14 days. In order for a benefit to be paid, the medical condition or operation must meet the definition stated in the policy conditions. Tax rules are subject to change and depend on individual circumstances.

Can I take out the cover if I already have other critical illness cover in place?

Yes. We do not require any details of any other policies that you may have and we will not reduce any benefit under your employer’s policy if you have more than one policy. If you are thinking of cancelling any other critical illness cover that you have in place, we recommend that you seek independent financial advice before doing so. Please remember that your cover will cease when you leave the company.

Why does group critical illness cover appear to cost less than an individual personal policy for a similar level of benefit?

When a group scheme is set up, the cost of setting up the policy is spread across the entire membership which results in a lower cost per member. The costs are further reduced as the policy does not medically underwrite members as it excludes claims for pre-existing medical conditions and associated conditions that a member may have previously experienced.

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Will I have to answer questions about my health to be accepted for cover?

No. All cover is provided on a pre-existing condition and associated condition exclusion basis. This means you will not be covered for any of the insured conditions that you were suffering from or showing symptoms of before you joined the scheme. Details regarding the pre-existing and associated condition exclusions can be found in the Guide to Cover and Conditions Covered documents held by your employer.

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Would a group and individual policy pay out for the same cause of claim?

This would depend on whether both policies cover the same medical condition or operation and that the definition of the condition or operation is met for both policies.

The number and definition of medical conditions and operations will vary between insurers and between group and individual critical illness policies.

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To whom are benefits paid out and how are they taxed?

Benefits from a group critical illness policy are paid direct to you and are tax free.

For children’s cover, benefits are paid to the employee whose child has been accepted for a claim.

Tax rules are subject to change and depend on individual circumstances.

Are there any policy exclusions under this policy?

The policy has a pre-existing and associated condition exclusion which means you will not be covered for any of the insured conditions that you were suffering from or showing symptoms of before you joined the scheme.

A general exclusion applies to all members where a claim will not be paid if it is caused directly or indirectly by an intentional self-inflicted injury.

Full details of the pre-existing conditions and associated condition exclusions can be found in the Guide to Cover and Conditions Covered documents held by your employer.

In the UKEvery year an estimated 152,000 people in the UK have a stroke Source: www.stroke.org.uk. What is a stroke. September 2012.

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Can I take out cover if I have suffered a critical illness before?

Yes. Please be aware that the pre-existing and associated condition exclusions will apply. This means you will not be covered for any of the insured conditions that you were suffering from or showing symptoms of before you joined the scheme.

After a claim, can I claim again on a group critical illness policy?

Yes. After a claim has been paid, you will have the option to rejoin the scheme as a new member. The pre-existing and associated condition exclusions will be reapplied when re-entering the scheme. This option is not available to those who have claimed for certain types of medical conditions previously. Please refer to the Guide to Cover document for further details on rejoining the scheme.

What happens to my critical illness cover if I leave my employer?

Cover will cease either on the day you leave or at the end of the month that you leave the company. Please speak to your employer for when cover ceases for your scheme.

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Further information For further information about your employer’s group critical illness policy, please contact your employer.

Friends Life LimitedAn incorporated company limited by shares and registered in England and Wales, number 4096141. Registered office: Pixham End, Dorking, Surrey RH4 1QA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Calls may be recorded. www.friendslife.comFriends Life is a registered trade mark of the Friends Life group.

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