University Life Insurance Scheme
Contributions & Benefits
Contributions
Level A: One Parent: £12.86 per month; Both Parents: £23.10 per month
Level B: One Parent: £17.12 per month; Both Parents: £30.75 per month
Benefits
Level A: Gap year: £4,500 per year; University years: £9,000 per year (Maximum total benefit £36,000)
Level B: Gap year: £4,500 per year; University years: £12,000 per year (Maximum total benefit £48,000)
Contributions and benefits are reviewed, although not necessarily changed, annually.
The effect of inflation on benefits
When assessing the value of the benefits payable to your child, it is important to take into account the effect of inflation. For instance, if an estimated 6% inflation rate (assuming 2% above an annual increase in R.P.I. of 4%) was applied to the annual amount of £4,000, the maximum benefit payable under the SFS Group University Life Insurance Scheme would be £60,145. This is an increase of 14.5% on the amount payable if the effects of inflation had been excluded.
Maximum benefits excluding inflation: £52,50
Maximum benefits including inflation: £60,145
Legal structure of the University Life Insurance Scheme
The University Life Insurance Scheme is established as a trust for the benefit of its members and its trustee is SFTS Trustees Limited. The Trustee collects contributions, and pays benefits to members. To enable the Trustee to pay benefits as they fall due, it has chosen to insure its liability to pay benefits with Unum, a specialist insurer of such schemes.