A free cover limit is the amount of cover a policy member can have on a group scheme without any medical evidence. It is expensive to medically examine all fund members particularly those with low cover. Members with a cover that exceeds the free cover limit will be requested by the insurer to provide certain medical evidence.
Group risk benefits are based on a member’s earnings and in most cases a free cover limit will have an impact on high income earners as they pose greater risk to the insurer at claim stage.