Q2. Do I have to set up the trust myself or can i partake in an existing trust?
An employer can set up their own trust or choose to use the insurer’s master trust.
Q3. What’s the difference between a ‘Registered’ and an ‘Excepted’ scheme?
Registered group life policies are set up under pension legislation, meaning lump sum benefits from
life insurance get aggregated with those from other registered pension schemes and tested against
the Lifetime Allowance (LTA). Any amount above LTA may be subject to tax.
Excepted group life policies are subject to life insurance legislation, not pensions legislation and
are not tested against the LTA. However, the benefit is subject to the normal tax rules for
discretionary trusts, meaning periodic charges and exit fees may apply, though usually no more than