Covid-19 Update for Group Clients

Covid-19 Update for Group Clients

Group Life Assurance FAQs

Are there any restrictions on claims?
There are no general exclusions under any existing Group Life Assurance Scheme policies, all causes of death are insured for eligible members. However, there is a restriction on travelling against advice from the Foreign Office.

Would a catastrophe limit apply?
A catastrophe clause could be invoked and a pandemic would be considered as the originating cause. If more than one member of the same scheme dies from the same originating cause the insurer’s catastrophe limit may apply. Your policy document and/or technical guide will confirm the limit applying to your particular policy. If you are unsure please contact us.

What if I travel to an area against Foreign Office advice?
Under the terms of a standard Group Life Assurance Scheme if a member travels to a red zone the policy will not cover them should they die while travelling to, from or while in the area. Please check the Foreign Office website for guidance https://www.gov.uk/foreign-travel-advice

If a member is travelling to a location on business which at the time the flight departed was not a red zone but has since become a red zone, the individual may be covered under the terms of the policy. This only applies to bookings made prior to 16 March 2020.

If a member is self-isolating or being quarantined are they classed as actively at work?
If the member is medically fit for work and has chosen to quarantine or self-isolate but not been medically advised to do so they are regarded as meeting the actively at work requirement. If they have received medical advice to refrain from work then they are classed as not actively at work. If a member is carrying out their normal job functions at home, they are actively at work.

Is Coronavirus covered under a critical illness policy?
It is not specifically covered but claims may be considered under other conditions; it is subject to the pre-existing conditions exclusion so any policies taken out after the virus has been contracted would not be insured.

Added value services
Most insurers have additional services attached to their policies which the members should be aware of where applicable. In the first instance if a member has a specific concern that they may have an infection caused by Coronavirus then they should be directed to the NHS website:
https://www.nhs.uk/conditions/coronavirus-covid-19/

The additional services are very valuable and can be used for most medical issues but the NHS is currently giving the most consistent advice on Coronavirus as publicised by the Government.

Workplace Pension Scheme FAQs

Many Workplace Pension Scheme members are invested in a Lifestyle Strategy, these strategies are designed to protect the capital of the fund in the years leading up to retirement.

Members who are reaching their selected retirement age in the short term will be affected by the drop in fund values and may not be able to wait for a recovery in the market. In this position, members will have to decide whether they can work longer and wait for the markets to recover or take a lower income.

Since the Coronavirus crisis has taken its toll on the world’s markets, members can expect a loss of value on their pension funds. The economic health and stability of the country is a prime concern and the Government are announcing new measures every day.

Anyone paying into a workplace pension who still has many years of contributions ahead of them are advised to sit tight and might even consider increasing pension contributions to take advantage of the low buying prices.

If I am unable to work, will my pension contributions continue?
If you are receiving normal or perhaps reduced pay during this time your pension contributions will continue at the same percentage level. If you are receiving SSP, pension contributions will continue but be greatly reduced. This is an area you should check with your employer and may depend on your employment contract.

What if I can no longer afford to pay pension contributions?
In a workplace pension you can opt-out at any time, your contributions would stop being deducted from your salary and your employer’s contributions would also cease. We would suggest this course of action is only taken if it becomes unaffordable for you. You can opt back in to the pension scheme when your circumstances change again.

What effect has the current crisis had on my pension fund?
Pensions invested in the stock market will have seen the values fall steeply in recent weeks. Providing you are not using your fund to buy an annuity or similar, we do expect the values to recover over time and the speed of this will depend on the investments themselves. Investment managers will be working rapidly to claw back the losses and once the markets have calmed down if you wish to review the funds you are invested in we will be able to help. It is important to note that what has happened is out of everyone’s control and your investments are positioned well for the recovery stage.

Will the UK economy recover?
COVID-19 is an unprecedented event for the UK and causing an economic shock for many businesses, especially small firms, pubs, the travel sector, airlines and oil companies, some of whom will require support from the Government to survive until the economy bounces back. When this is over people will be ready to spend money on holidays, eating out and shopping and businesses will be eager for their custom.

Everyone will be affected by this sudden and unexpected turn of events but markets will recover, it is just when and whether there is further downside risk from current levels. Pensions are a long term investment and our advice is to wait for recovery if you can afford to do so.

Private Medical Insurance (PMI) FAQs

The advice from the Government is to stay indoors where possible, eat healthily, remain connected and look after those who are vulnerable.

Should I use my Private Medical Insurance if I have or may have COVID-19?
Urgent or emergency care is not covered by PMI, you must contact 111 or call your NHS GP. Your PMI policy will not be able to help for COVID-19 related enquiries.

If I develop further medical issues as a result of COVID-19 can I use PMI?
You may be able to claim for additional medical issues, you should telephone your usual claims helpline and will depend on the type of cover you have and whether any restrictions are already placed on your membership. This will be dealt with on a case by case basis.

Can I be tested for COVID-19 via my PMI plan?
No, testing for COVID-19 is not currently available via Private Medical Insurance.

Will the pandemic result in private operations and treatment being postponed or cancelled?
The PMI providers are working closely with their hospital partners to enable the majority of planned operations and treatment to continue at this time.

Will physiotherapy and cognitive behavioural therapy still be available?
The PMI providers are working with their partners to continue to deliver treatment at this time.

Where Worldwide Travel Cover is included will I be able to claim for medical expenses, cancellations or disruption as a result of COVID-19?
If you have this cover included in your policy, cover will continue for bookings made up to and including 16 March 2020. Any bookings made from 17 March will not be covered for cancellation or disruption caused by COVID-19. You should contact your airline or travel agency in the first instance before using your PMI policy.

Added value services
Where your policy has additional services such as gyms, cinema, coffee shops, etc. these are inevitably unavailable due to the Government’s advice and lockdowns. Remote access to GP and support services are still available at the point of release and if eligible, NHS cash back benefits still apply.

Any more questions?
Please contact us via your usual Lycetts contact if you have any queries not addressed above. Alternatively, the office telephone number and email address are below.