School Fees Trust Scheme
Covers School Fees in the event of one or both parents becoming critically or terminally ill or dying.
How the Trust Scheme works
SFTS is set up as a group life insurance scheme with a trustee as policyholder. This enables it to benefit from the rules relating to group insurance and to provide a number of valuable benefits that would not normally be available if you were to buy an individual policy.
If you were to contract a serious illness, be declared terminally ill, or die, the Trust, backed by our insurer, would pay the amount of school fees you have chosen direct to your child's school until they left at eighteen.
You are able to join without any medical screening. However, in order to protect the Trust from those who are already ill, a claim will not be paid if you die from an illness which has been diagnosed in the last five years.
School fees continue to rise inexorably, so if the Trust is paying a claim then each year the amount being paid increases by the rate of inflation plus 2%.
As the benefits are paid direct to the school they bypass your estate, ensuring that under current legislation, they will not be taxed, nor caught up in probate delays which can, in extreme cases, take years to resolve.
SFTS pays out if you die or contract a serious illness. However, there are some other issues, such as redundancy or the financial impact of divorce that can seriously affect your ability to pay the fees. We therefore pay a proportion of your monthly payment into our charitable trust which is there to help parents who have fallen on hard times when their child is at a crucial stage of their education. There are no guarantees - each case is looked at on its merits - but we have helped hundreds of children over the years.Download summary PDF