School Fees Trust Scheme
Covers School Fees in the event of one or both parents becoming critically or terminally ill or dying.
The following questions and answers form part of the Terms and Conditions of this scheme.
FREQUENTLY ASKED QUESTIONS
What is the legal structure of the School Fees Trust Scheme?
It is established by trust deed as a trust for the benefit of its members (parents). Its Trustee is SFTS Trustees Ltd, a company regulated by the FSA whose director is a partner with Lawrence Graham Solicitors. The Trustee collects contribution and pays out benefits to schools. These liabilities are insured with Unum, a specialist insurer of such schemes. SFS Group Ltd is appointed by SFTS Trustees Ltd to manage the Scheme on its behalf. (The trust deed and other information are available upon request).
What happens in the event of a claim?
Your dependants should contact the SFS Group, who will then send you a claim form. This will then need to be returned with the certificate of insurance, the death certificate (if applicable), and the birth certificate of the insured and the child, and benefits will be paid at the amount chosen to the school from the beginning of the following term.
I am a UK citizen but live and work abroad – may I join?
Yes, any member of the European Union (EU), or a Foreign National resident in the European Union may join regardless of where they work in the world. Any non-EU national may join providing they are resident in the EU. However, all contributions should be payable from a UK bank account.
Are there any age limits to join?
Yes, you must be aged 60 or under when membership commence.
Exactly what critical illnesses are insured?
Accidental AIDS, Alzheimer’s Disease, Aorta Graft Surgery, Balloon Angioplasty, Benign Brain Tumour, Blindness, Cancer, Chronic Lung Disease including Emphysema, Coma, Coronary Artery Bypass Surgery, Creutzfeldt Jakob Disease, Deafness, Heart Attack, Heart Valve Replacement or Repair, Hodgkin’s Disease, Kidney Failure, Loss of Limbs, Loss of Speech, Major Organ Transplant, Motor Neurone Disease, Multiple Sclerosis, Open Heart Surgery, Paralysis/Paraplegia, Parkinson’s Disease, Permanent Total Disability, Pre-Senile Dementia, Pulmonary Artery Surgery, Rheumatoid Arthritis, Severe Head Injuries, Stroke, Third Degree Burns. Please note that if you have a family history of Alzheimer’s Disease, Motor Neurone Disease, or Parkinson’s Disease, and you are diagnosed with one of these illnesses, then you will not be able to claim under this policy.
Can you explain in more detail about Pre-Existing Conditions?
This insurance is for parents who do not know a) that they are ill, or b) whether they may be ill in the future. If you have already been diagnosed with a Critical or life-threatening condition then you should not apply for cover. The diagnosis of any Pre-Existing Condition which has taken place up to 60 months before joining will prohibit you from making a claim. Please read the detailed explanation in the terms and conditions.
What defines a Terminal Illness?
A terminal illness means a medical condition due to which, in the opinion of the medical specialist involved, but subject to the agreement of the Insurer’s Chief Medical Officer, the advent of death is highly probable within 12 months.
What is the point of both parents being insured?
According to the Office for National Statistics, of the 19,605 married and divorced people between the ages of 35 and 55 who died in 2007, 10,934 were male and 8,671 were female, a 55/45 percentage split. If 7% of those were educating their children privately (Independent School Council 2011 census) that would equate to 1,372 deaths of both sexes. However, one likes to think that independent school parents are healthier, which may reduce this number.
How much will it cost to insure both parents?
We automatically give you a 10% discount on the second insured person.
Is there a limit to how many of my children may be covered?
No, but the cost is per child.
Precisely how does the inflation linking on a claim in progress work?
The amount per term for the previous year is taken and has the Retail Price Index for May plus 2% applied to it.
What is the minimum age of a child joining the scheme?
The minimum age of joining is 4 years of age at the start of the academic year.
What happens if my child moves school while a claim is being paid?
The benefits follow them from school to school even if it is a fee-paying school abroad.
What happens if my child leaves independent education before they are 18?
Any remaining benefits would be paid into the School Fees Charitable Trust to help other parents. Under no circumstances may benefits be paid to the parent or the child.
What happens when my child reaches 18?
We will offer you the opportunity to continue cover through university.
What guarantees do I have about future benefits and premiums?
School fees will continue to rise so we notify you from time to time of any increases.
When does the Scheme end?
You may end it at any time by giving us one month’s notice in writing or by email. If you continue to pay contributions, the scheme will end on the last day of April of the academic year in which a child reaches 18.
What is my commitment?
To provide us truthfully with all relevant information when joining the Scheme and to pay your monthly contributions.
To advise the SFS Group in writing of any change of circumstances, i.e. change of school, change of address or cancellation of policy.
What are the risks I take?
If you do not make your contributions we will not pay the benefits to the school in the event of a claim. The Scheme has no cash in value at any time.
How do I make an application to the School Fees Charitable Trust?
You call 01306 746300 and ask the Trust Secretary for an application form.
How do I make a complaint?
In the first instance you should write to the Managing Director of SFS Group Ltd, the administrators of the Scheme. If he cannot satisfy you then please write to The Head of Customer Feedback, Unum, Milton Court, Dorking, Surrey, RH4 3LZ. In the final instance you may apply to The Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SRDownload summary PDF