Category: Group risk fundamentals · Reviewed by Mark Fox, Broker · Renewals · Last reviewed 2026-06-10
A master trust group life is a pooled discretionary trust, established and operated by an insurer or a specialist independent trustee, under which multiple employers can place their group life policies (whether registered or excepted) without each having to constitute its own bespoke trust. The master trust deed governs all participating employers; each employer adheres to the trust on standard terms and the insurer’s policy is held by the master trustees for the benefit of the employees of all participating employers.
Category: Group risk fundamentals Also known as: Master trust EGLP, pooled group life trust Typical operators: Aviva, Legal & General, Canada Life, Zurich master trusts Related concepts: Excepted group life policy, Registered group life policy, Group life trust
The master trust is a single discretionary trust established by deed under English law (or Scottish law). Each participating employer signs an adherence agreement that brings the employer’s policy within the trust. The trustees (typically a corporate trustee operated by the insurer or an independent firm) hold the policy or policies and exercise their discretion to pay out benefits on death of an insured employee, using nomination/expression of wish information collected by the employer.
A master trust EGLP must still comply with the excepted group life conditions of s.480 ITTOIA 2005, applied policy by policy. A registered master trust group life is registered as a pension scheme under Part 4 of the Finance Act 2004. The trustees owe fiduciary duties under the Trustee Act 2000 and general trust law. The administration of master trust pension schemes is supervised by The Pensions Regulator under the Pension Schemes Act 2017 and the Master Trusts Authorisation Regime — though that supervisory regime applies only to occupational DC master trusts, not group life master trusts.
Master trusts dramatically reduce administrative cost and risk for small and mid-sized employers, who would otherwise face the cost and complexity of establishing their own trust, monitoring trustee succession and ensuring the trust is administered correctly. The trade-off is that the employer surrenders some flexibility — for example, the standard trust may not permit non-discretionary trustee directions.
A mid-sized firm wishes to put in place an excepted group life policy at 6x salary covering 80 employees. Rather than establish its own discretionary trust, the firm joins the insurer’s master trust EGLP by signing a one-page adherence agreement. The master trustees hold the policy; on death of an employee the trustees pay the benefit within weeks using the deceased’s nomination form.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
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