School Fees Trust Scheme
Covers School Fees in the event of one or both parents becoming critically or terminally ill or dying.
If you are a parent looking to buy the School Fees Trust Scheme for your child please see the Families section.
The Scheme for Schools
The School Fees Trust Scheme is a group life insurance scheme that enables parents to insure one of their major liabilities, their School Fees, against their death or a serious illness. Parents may join it regardless of their state of health or age (up to 60) and, as the benefits are paid direct to the school in the event of a claim, all problems associated with probate and inheritance tax are avoided.
A crucial scheme – Angus Cater talks to BBC Radio 4′s Ernie Rea on why parents should join the School Fees Trust Scheme.
Why should the School encourage parents to consider this insurance?
Every year parents die while their children are still at school. The trauma of losing a father or mother is compounded by the financial impact of losing either a primary or secondary source of income. Recent research by Friends Provident shows that nearly 50% of the U.K. population have no life insurance and those that do seriously underestimate the impact of the loss of income on their lifestyle choices.
Schools, by the very nature of their communities, are involved in this process which mostly ends with the school providing a subsidy to keep a child at school with their friends. At a time when schools are struggling with rising costs and the requirements of public benefit they do not need this additional, avoidable cost.
Why should the School help?
In the last ten years the School Fees Trust Scheme has paid £15.3 million to schools following the death of an insured parent. In addition the Schools Fees Charitable Trust, which is funded by the Scheme, has paid out £430,000 in bursaries in the last five years. The ability to pay these claims and bursaries requires significant numbers of insured parents who don’t die. It is in the school’s own interest to encourage parents to make a thoughtful decision about their need for such insurance.
How can the School help?
This is a ‘group’ life insurance scheme and therefore is absolved from rules surrounding ‘Opt-out’ in the Distance Marketing Directive 2004. The most effective way of marketing this insurance is to add it to the school bill , allowing parents to decide whether to pay it or delete it. We know, because from 1991 to 1996 this is the only way we marketed it, that this encourages parents to read the literature and make an informed decision. The take-up rate improves from approximately 1% to 15% or more.
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The School Fees Charitable Trust
The SFCT is funded by the SFS Group Life Insurance Scheme, which insures a child's school fees against the death of a fee paying parent.
Visit our charitable trust page to see if we can help.