What is a Group Insurance Scheme? How does it Work?
School Fees Insurance provides certainty for Parents, Children and the School. For an annual insurance premium, which is included with school fees charged, and paid by parents, each child's total future school fees are paid to the school, should either of their parents or legal guardian's die before they finish their time at your School.
Why would the School set up such a Scheme?
School Fees are a major budget item. School Fees Insurance provides certainty for a family should a parent die. All future fees are taken care of and the child's education is continued irrespective of the changed financial circumstances that will likely occur.
The scheme also provides certainty for the school by guaranteeing the future attendance and fees of any affected pupils, while being a cost neutral item in the school's budget. A large number of private schools in New Zealand now have such a scheme in place.
Are all Parents Covered?
The cover applies to parents with New Zealand residency who actually reside in New Zealand. Cover is automatically guaranteed until age 70 regardless of their state of health.
The group scheme is not a voluntary "opt-in" arrangement. All pupils, apart from overseas students, are covered by the scheme.
How much does it cost?
The premium varies depending upon the school roll and the level of school fees, but a very broad idea could be based on $40 per pupil per term. The amount would be charged along with school fees. No one covered by the scheme is required by to complete any forms at all.
The group premium is decided by actuarial calculations and provides and insurance cover at substantial discount rates for parents. The school is invoiced for the premium on a per term basis.
What happens if there is a claim?
On the death of a parent, or Guardian, Fidelity Life will pay a lump sum to the school equal to the anticipated future fees payable for the student.
Additional Scholarship Option
The scholarship concept is one where the school has an option of adding a Scholarship Benefit. This means that there is a small increase applied to the overall premiums (something like $3 per child per $1,000 of fees). The school is then able to offer a 50% scholarship to one child every year which covers all their fees for the entire time they are at that school. The scholarship recipient would be selected by the school and managed by them from that point forward. As an alternative, the amount of funding available could be utilised so it covers 100% of the fees but if that were the case it could only be offered every two years.
Why Fidelity Life?
Fidelity Life is 100% New Zealand owned and a family focused organisation. Fidelity already covers many large schools in this way under their Group Life Insurance Policy. No other Life Insurance provider offers this kind of group insurance for schools.
To receive a quote for your School
Please provide the School roll as follows:
- Day pupil numbers in each year, with school fees per annum for that year.
- Boarders in each year (if applicable), with school fees per annum for that year.
If you are interested in learning more you can watch our explainer videos here.