Life cover & benefits
What is the free cover limit in group term life insurance?
The free cover limit, or FCL, is the amount of group life cover every employee gets with no medical tests. Above it, the insurer asks for a health declaration or medicals. If those are never completed, cover can stay capped at the free cover limit, so the amount in an offer letter and the amount a family receives can differ.
In short
- FCL = free cover limit: life cover up to it needs no medicals.
- Above the FCL, the insurer needs a health declaration or medicals.
- If they are never done, cover can stay capped at the FCL.
- Ask HR one question: is my cover above the FCL, and were my medicals completed?
What is the free cover limit?
The sum insured up to which every employee in a group term life policy is covered without medical tests, whatever their health. It is set separately for each policy. It is one of the strongest features of group life cover, because people who might struggle to buy cover on their own get it automatically.
What happens above the free cover limit?
The insurer asks for a health declaration, medical tests, or both, for the part of the cover above the limit. If the reports come back normal, the full sum insured applies. If they don’t, or if the person never attends the medicals, the cover stays capped at the free cover limit.
So the number in an offer letter and the number a family would actually receive can be different. The gap usually surfaces only at the claim, which is the worst time to discover it.
Who is most likely to be affected?
Senior and well-paid employees, whose cover is set as a multiple of salary. Their sum insured is the most likely to sit above the free cover limit, so they are the ones whose medicals matter most.
What should an employee do?
Send HR one email. Ask for the policy’s free cover limit, whether your own sum insured is above it, and if it is, whether your medicals were completed and accepted. It takes minutes and closes the gap before it matters.
What should an employer do?
Track every employee above the free cover limit until their medicals are complete. Tell new joiners, and anyone whose salary rise takes their cover above the limit, that the insurer needs their medicals, and follow up until it is done.
Frequently asked questions
What is FCL in group insurance?
FCL stands for free cover limit: the group life sum insured up to which no medical tests are needed.
What happens if I don't do the medicals above the FCL?
Your cover can stay capped at the free cover limit, so your family could receive less than the sum insured in your offer letter.
Is the free cover limit the same for every company?
No. It is set separately for each policy, so ask your HR team for your policy's figure.
What happens when you talk to us
A 20-minute video call with a Growth Advisor. No obligation, and no quote pushed. It opens with a five-minute video from our founder on how the benefits stack works and why Ethika exists; the rest is your questions. You’ll leave with an honest read on your current cover and claims experience, and a straight answer on whether we can genuinely help, even if you never become a client.
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A note on this page. Everything here is general information, not insurance, legal, financial or tax advice, and nothing is an offer. No insurer or product is named or recommended. What any policy covers depends on its own wording and schedule. For advice about your situation, talk to us.