Many of you will know from experience, that when taking individual protection policies such as life cover or income protection, existing conditions will be refused…or come at a hefty price to cover.
Business owners often tend to overlook the fact that employee benefits insurances are an option for them to review and can help cover the business owners as well as their employees.
We will review the top three employee benefits insurances and what their stances are when it comes to covering pre-existing health conditions.
Employee Life Insurance
Employee Life Insurance provides your employees family members and loved ones with a lump sum payment in the event of their passing.
Pre-existing health conditions will often be covered by Employee Life Insurance policies, but it depends on the number of employees to what requirements there are.
Common examples of questions for smaller businesses can be asking if any employees suffered from a stroke, heart attack or cancer in the last twelve months.
Larger workforces will often only have to disclose if there are currently any employees off work over three months.
Companies will often just need to ensure that all employees are actively at work and if they are under the ‘non-medical underwriting limit / free cover limit’ provided by the insurer they will automatically be covered.
It is never a one size fits all approach for business when taking out employee life insurance and as highlighted, each insurer will have different requirements and conditions depending on the size of the business and their industry.
At Hooray Health & Protection we find 90% of our clients can proceed with a new employee life insurance policy that covers all pre-existing conditions without any health questionnaires required.
Group Income Protection
Group Income Protection pays your employees a percentage of their monthly salary for a set period if they suffer an accident or sickness and are unable to work.
It will usually cover pre-existing conditions, but certain criteria will need to be met for any new joiners to be covered under the policy.
Any new entrants to the policy must meet their actively at work criteria and join from day one of the eligibility criteria.
Every insurer will apply an AAW which is along the lines of ‘employees must be actively performing their normal occupation and not off work sick or advise against working by a medical professional’.
If an employee meets that criteria and is under the ‘non-medical underwriting limit’ they will be covered for any pre-existing conditions.
Most policies we are able to put place to cover all employees pre-existing medical conditions but always ask about any current employee’s absences as this will be where most insurers will add restrictions which can cause declines.
Business Health Insurance
Business Health Insurance allows your staff to bypass the lengthy NHS waiting lists by providing them with access to private healthcare.
When reviewing your new or existing Business Health Insurance policy, the underwriting option you choose will decide if pre-existing medical conditions are covered but if they are excluded then how long for.
Below we have listed the three underwriting options and a brief overview of what they mean for your policy.
Moratorium: This is the most common form of underwriting for businesses that are providing cover for less than 100 employees. Moratorium excludes any pre-existing health conditions that employees have suffered in the last five years for at least two years. If the insured member goes two years with no symptoms or treatment it can be covered again.
Fully Medical Underwritten: All staff disclose their pre-existing conditions up front and the insurance underwriters will decide what is covered from day one of the policy. The positive for this option is you know what cover is in place from day one, but it can however negatively impact you or your staff by excluding existing conditions.
Medical History Disregarded: MHD is the most sought-after form of underwriting as disregards all employee’s medical history which allows all existing conditions to be covered. Medical History Disregarded is only available for larger companies that have over 100 employees.
No matter the size of your workforce, when it comes to all employee benefit insurance policies you need to ensure you receive the right financial advice.
If you limit yourself to just the one insurer you are then restricting yourself to their requirements, whereas an insurance broker will explore every option for you.
Hooray Health & Protection charge no fee whether you are a new or existing customer and will search the whole market to make sure you receive the right level of cover for you and your employees.