Frequently asked questions

A scheme which is registered by the employer with HMRC to realise taxation advantages.

The Scheme Administrator or Scheme Trustee registers the scheme on-line with HMRC (Scheme Registration). RAM is unable to act as a Scheme Administrator.

• 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.

• 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.

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.

Individuals subject to Schedule D earnings (e.g. Equity Partners) or some of the Employer's more highly paid employees.

• Benefits are paid tax free to nominated beneficiaries.
• The benefits do not count towards an individual's Lifetime Allowance.

The maximum amount an individual can accrue while retaining tax free status. This allowance was abolished on 6 April 2024 and is only applicable if an individual’s entitlement was before this date.

The LSDBA replaced the Lifetime Allowance on 6 April 2024 and this allowance limits the amount of tax free sums an individual can accrue in both their lifetime and on death.

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.

Cover is provided by a Group Life Term Assurance policy with rates usually guaranteed for 2 years.

The minimum number of lives is 20 and there is no maximum.

The minimum age for joining a scheme is 16 years and the maximum age is 74 years however there may be underwriting requirements for members who are 70 or more years old. In any case, cover ceases upon a member’s 75th birthday.

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.

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.

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.

Premiums can be accepted on one of the following basis:

Yearly, half yearly, quarterly or monthly by BACS or Standing Order.

If redundancy cover is selected at policy outset, cover will continue for members upon the continued payment of premiums, for up to 12 months from the date of redundancy, however, cover will cease on the earliest of:

• The date on which the member finds alternative employment (including self-employment).
• The member attains the Scheme Cease Age.
• The end of the agreed period of redundancy (maximum 12 months).

When a scheme switches to us where a member has already been made redundant and remains covered, cover would continue for this member for a period not exceeding 12 months from the date of redundancy, providing:

• Any redundant member is included within the membership data and premiums are being paid in respect of the member(s)
• we are made aware of any member(s) who is/are redundant
• all other policy terms and conditions are satisfied

Payment of any claim is made by electronic transfer to the Policyholder (Trustees) on the death of a member.

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.

The Technical Guides can be downloaded from this website on our broker centre page.

All correspondence should be sent to:

Risk Assurance Management Limited
Chancery House
Leas Road
Guildford
Surrey GU1 4QW

Or alternatively you can send us an email to: Group.Risk@RAM-Ltd.co.uk

Dependant means: the spouse or partner and any brother, sister, parent, legal dependants (except children under the age of 16) of the employee who reside in the same household as the employee; and any children or legal dependants of the employee who do not live in their household and are aged 16 to 23, living in the UK and are in full-time education.

NOTE: For children or legal dependants of the employee who do not live in their household, being in full-time education would also include an apprenticeship.

Yes. We would rather a broker discusses an opportunity with us than assumes it falls outside appetite.

The Broker Centre holds technical guides, policy conditions, forms, trust documentation and other working material.