What is a Lloyd's Coverholder?
A Lloyd's Coverholder is a firm that is authorised by a Lloyd's managing agent to enter into contracts of insurance and/or issue insurance documentation on the behalf of a syndicate it manages.
What is a HMRC registered Group Life Assurance Scheme?
A scheme which is registered by the employer with HMRC to realise taxation advantages.
How is HMRC Registration obtained?
The Scheme Administrator or Scheme Trustee registers the scheme on-line with HMRC (Scheme Registration). RAM is unable to act as a Scheme Administrator.
What are the advantages of a HMRC registered Group Life Assurance for an employer?
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.
What are the advantages of a HMRC registered Group Life Assurance for an employee?
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.
What is an Excepted Policy?
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.
Who might want an Excepted Policy?
Individuals subject to Schedule D earnings (e.g. Equity Partners) or some of the Employer's more highly paid employees.
What are the advantages of an Excepted Policy?
Benefits are paid tax free to nominated beneficiaries. The benefits do not count towards an individual's Lifetime Allowance.
What is the Lifetime Allowance?
The maximum amount an individual can accrue while retaining tax free status.
Who can join the scheme?
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.
How is the Group Life Assurance provided?
Cover is provided by a Group Life Term Assurance policy with rates usually guaranteed for 2 years.
What are the minimum/maximum number of lives required to set up a Group Life Assurance Scheme ?
Our usual minimum number of lives is 10 however we do look at schemes with an absolute minimum of 3 lives. We provide quotations for schemes with 3-9 lives on a case by case basis. There is no maximum.
What is the minimum/maximum age of a member who can join a Group Life Assurance Scheme?
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 for members over 70 up to age 75 providing they are actively at work at their cease age, with no further underwriting requirements.
What is a "Free Cover" limit?
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.
What does "Actively at Work" mean?
Actively at Work means that at the intended date on which cover commences the individual must be at work and be mentally and physically able to carry out their normal occupation for their normal contracted number of hours at their usual place of work and has not received medical advice to refrain from working.
What about leavers and new entrants?
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 providing they meet the eligibility requirements and satisfy the "Actively at Work" requirements. Any such member is entitled to cover up to the Free Cover Level (FCL) however any benefits above the FCL are covered for accidental death only for a period up to a maximum of 6 months or until an Underwriting decision has been made, whichever is the sooner.
How are premiums paid?
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.
What is the normal maximum Sum Assured that can be provided per member?
The normal maximum Sum Assured that can be provided is £4,000,000.
How are claims settled?
Payment of any claim is made by electronic transfer to the Policyholder (Trustees) on the death of a member.
What is required to settle a claim?
An original death certificate, proof of salary relating to the deceased and a claim form which has been completed by the Trustees. RAM reserves the right to request further information if required.
Where can I find further information?
Where should all correspondence be sent?
All correspondence should be sent to:
Risk Assurance Management Limited
Surrey GU1 4QW
Combining the security of Lloyd's
with the expertise of RAM
Specialist underwriters with over 30 years experience
Risk underwriting, Administration and Marketing
Authorised and regulated by the FCA