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HOW DOES A TRUST FUND WORK?

Simply this is how it works :
Your contributions are paid into YOUR health trust fund account which is set up with the Royal Bank of Scotland or your chosen bank. They can be paid annually or monthly by direct debit.

Your Company appoints a minimum of 2 Trustees as joint signatories to the Trust Account. No one else has access to your contributions. Revelation HC is the appointed Third Party Administrator (TPA) who provide and handle claims management service. For this they charge an annual fee from your Trust Fund. Every 12 months a review is carried out to determine the performance of the scheme and the following years' contributions are agreed with your Company and paid into the Trust Account. You can add or delete members through out the year as you do normally and your contributions are adjusted accordingly.

The basic difference is that there is No Insurance Company, instead your contributions are lodged securely in a trust fund account earning interest for the Healthcare Trust Fund.

This form of contract utilises UK Trust Law and provides a very secure and powerful facility to manage a discretionary health care provision. Interestingly different isn’t it? This type of contract has been successfully used by large corporate companies for over 100 years to manage their Healthcare. Companies such as BASS Charrington PLC (the brewery) and MAXPAC (the coffee people). Revelation provides a Deed of Agreement and are contractually obligated to provide a complete service to your Company. If however you choose to appoint another (TPA) you are free to do so. Revelation will agree at the inception of the contract a suitable contribution for schemes with principal members over 51. For schemes between 30-50 see the contributions guide. It is recommended that the same level of contributions are lodged into the Trust Account for the first three years so as to build up sufficient equity to ensure a cushion for future years. As the funds are under your company's control, you are able to act in your company's members' best interests. You are able to invest it in higher interest accounts, or you may reduce contributions, providing there are sufficient funds to meet expected claims, or even suspend contributions for a period. Naturally, as responsible trustees you must act in the best interests of your members and you are bound under the UK Trust Laws. This places the onus of responsibility to your Company’s Trustees of managing your contributions instead of entrusting your premiums with an insurance company. We do believe that you would prefer to have control over your contributions rather than having to accept the insurance companies’ reasons to increase contributions irrespective of your claims experience.

Naturally the contributions (less all claims paid) are an asset of your company's Healthcare Trust Fund.

 

 

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