| Q. |
What is a HMRC
registered Group Life Assurance Scheme? |
| A. |
A scheme which is
registered by the employer with HMRC to realise taxation
advantages. |
| Q. |
How is HMRC approval
obtained? |
| A. |
The Scheme Administrator
or Scheme Trustee registers the scheme on-line with HMRC
(Scheme Registration). RAM are unable to act as a Scheme
Administrator. |
| Q. |
What are the advantages
of a HMRC registered Group Life Assurance for an
employer? |
| A. |
Provides a very valuable
benefit to employees at a low cost. Can improve staff
relationships and goodwill.
Can help with recruitment
of employees and retention of valued and key
staff. |
| Q. |
What are the advantages
of a HMRC registered Group Life Assurance for an
employee? |
| A. |
Benefits are paid tax
free to nominated beneficiaries.
The Employer's
contributions to the scheme are not treated as a benefit
in kind for members. The cover is often available
without the need to provide medical evidence. |
| Q. |
What is an Excepted Policy? |
| A. |
A policy that is not registered with HMRC
and is defined in Section 480 of the Income Tax (Trading & Other Income) Act
2005 to meet the conditions as set out in Sections 481 and 482 of that Act. |
| Q. |
Who might want an Excepted Policy? |
| A. |
Individuals subject to Schedule D earnings
(e.g. Equity Partners) or some of the Employer’s more highly paid employees. |
| Q. |
What are the advantages of an Excepted Policy? |
| A. |
Benefits are paid tax free to nominated beneficiaries.
The benefits do not count towards an individual’s Lifetime Allowance. |
| Q. |
What is the Lifetime Allowance? |
| A. |
The maximum amount an individual can accrue
while retaining tax free status. |
| Q. |
Who can join the
scheme? |
| A. |
The Employer decides on
the eligibility requirements of the scheme and the level
of cover. For example, an amount of twice annual
earnings for those who have been employed by the Company
for more than 6 months. |
| Q. |
How is the Group Life
Assurance provided? |
| A. |
Cover is provided by a
Group Life Term Assurance policy with rates usually
guaranteed for 2 years. |
| Q. |
What are the
minimum/maximum number of lives required to set up a
Group Life Assurance Scheme ? |
| A. |
Our minimum number of
lives required for a Group Life Assurance Scheme is 10;
there is no maximum. |
| Q. |
What is the
minimum/maximum age of a member who can join a Group
Life Assurance Scheme? |
| A. |
The minimum age for a
member to join a Group Life Assurance Scheme is 16 and
the maximum age for a member to be included is 70. Cover
can be extended on an individual costing basis for
members over 70 up to age 75. However individual
underwriting considerations will apply for these members
at each renewal |
| Q. |
What is a "Free Cover"
limit? |
| A. |
Depending on the size of
the group and other factors, each scheme will have a
"Free Cover" limit. This is the amount of group life
cover which each member can have without the need to
provide any medical information. Certain members will be
subject to "Actively at Work" requirements and those
will be confirmed by RAM. |
| Q. |
What does "Actively at
Work" mean? |
| A. |
Actively at Work means
that a member is at his place of work and is mentally
and physically capable of carrying out his normal
regular duties associated with the job at the members
commencement of risk date. |
| Q. |
What about leavers and
new entrants? |
| A. |
If an individual leaves
service of the employer, cover will cease
immediately.
If there are new employees, these
can be included in the scheme immediately if they meet
the eligibility requirements, and satisfy any "Actively
at Work" requirement. Benefits will be restricted to the
Free Cover Level pending completion of medical
underwriting.
|
| Q. |
How are premiums
paid? |
| A. |
Premiums can be accepted
on one of the following basis:
Yearly premium by
Cheque
Monthly premium by Standing Order
Quarterly
or half yearly premium either by cheque or standing
order. |
| Q. |
What is the Maximum Sum
Assured per member? |
| A. |
The normal maximum Sum
Assured that can be provided is £2,000,000; any benefit
in excess of this level will be subject to individual
consideration. |
| Q. |
How are claims settled?
|
| A. |
Payment of any claim is
made to the Policyholder (Trustees) on the death of a
member. |
| Q. |
What is required to
settle a claim? |
| A. |
An original death
certificate and completed claim form by the Trustees.
RAM reserves the right to request further information if
required. |
| Q. |
Where can I find
further information? |
| A. |
The Technical Guides can
be downloaded from this website on our Downloads page. |
| Q. |
Where should all
correspondence be sent? |
| A. |
All correspondence should
be sent to :
Risk Assurance Management Limited
Chancery House
Leas Road
Guildford
Surrey GU1 4QW |
Group Contracts
