Ill health early retirement benefit

From 100 employees.

No maximum.

The full cost or partial cost to the pension scheme as a result of an employee retiring early due to ill health can be covered. This is referred to as the strain cost.

Employees can be grouped into separate categories and there can be different benefit basis between categories.

Active members of the pension scheme.

Employees must be included for cover as soon as they are eligible.

Cover for a member of the pension scheme ends when a payment has been made following a valid claim.

£2 million or the strain cost to the pension scheme if that is lower.

Our quote will show a free limit, which is the maximum amount of cover we can provide before we ask for medical evidence. The free limit amount depends on the number of employees and the amount of cover.

For policies with less than 1,000 employees we will apply a pre-existing condition exclusion for cover up to the free limit.

This means we won’t pay benefit in relation to an employee whose permanent incapacity results from an injury or illness they were suffering from either at the date they were covered by the policy or were diagnosed with or displaying symptoms of within the two years before their cover began.

Usually the normal pension scheme age under the pension scheme rules.

Alternatively, it can be the state pension age.

If an employee is absent due to illness or injury, we’ll continue to cover them up to the date they’re eligible to receive an ill health early retirement pension or the benefit end date.

If an employee is absent for another reason, such as a sabbatical, we’ll continue cover for one year.

Considered on an individual basis with advance notice.

We consider past claims when working out the cost of cover.