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Application process for group income protection

This article is part of
Guide to Group Income Protection

Mr Letizia says employee data needs to be obtained and the adviser needs to agree with their client the benefit basis of the policy, for example, the amount of benefit to be insured and duration of payment.

He says the adviser should then send this data to the provider who will then assess the risk and calculate the appropriate premium for the policy. The premium is then set out in a quotation confirming the basis of benefit being provided and the premium.

The quotation is usually guaranteed for three months, Mr Letizia adds.

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He says: “You can then consider the quotation with your client and decide whether you wish to proceed by accepting the quotation, completing an application form and paying the premium.”

Within 30 days from the date the cover starts, Nick Homer, group protection manager of Zurich UK Life, says applicants need to provide:

1) A completed proposal form.

2) A deposit premium or a completed direct debit mandate.

3) Membership data as at the cover start date, including details of previous underwriting decisions.

If the risk differs from the quotation, Mr Homer says advisers should expect the provider to let them know what else is required and whether the premium will be changed.

Mr Homer says: “We allow a 15 per cent variation in the number of members or their total salaries between quotation and on risk data but the quotation basis will be applied to the up to date information provided.”

Steve Bridger, head of group risk at Aviva UK Health, says advisers should look for providers that want to help your corporate clients by reducing administration whenever possible.

However he says advisers should remember for the best rate some providers will seek to probe deeper into the state of your corporate client’s workforce.

Mr Bridger says: “When an employee chooses to undergo a tele-interview, our staff capture all the essential information that’s needed.

“This means that employees don’t have to complete forms, which can significantly reduce cases of accidental non-disclosure due to our experience of asking the right questions in the right way.

“If employees don’t want to take part in tele-interviews, they can complete a medical declaration to capture information about their work, health, lifestyle and medical history.”