What is one of the key benefits to a policyholder of arranging cover under a scheme policy?

A key benefit of arranging cover under a scheme policy is that it often provides wider cover than standard individual policies. Scheme policies are typically designed to meet the needs of a specific group of businesses or individuals, allowing for broader coverage options that cater to common risks faced by the group. This collective approach can lead to enhanced policy features, including additional benefits or less common coverage that might not be easily accessible through traditional individual insurance plans.

Wider coverage can lead to improved security for the policyholder, as it addresses various potential risks that might be inadequately covered by standard policies. In addition, because scheme policies leverage the collective bargaining power of the group, they may include terms and conditions that would be more favorable than what an individual could negotiate on their own.

While other options such as tailored cover or potentially higher sums insured and reduced rates of Insurance Premium Tax (IPT) may also apply in certain contexts, the hallmark of a scheme policy is often its tendency to provide a wider range of coverage specifically designed for its members.