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Insurance
Life Insurance - Life insurance helps protect against the financial consequences of death by natural causes such as diseases of the heart, cancer and other fatal diseases as well as death by accident. Generally it does not cover for disability caused by illness or accident. It is important when considering any form of Insurance cover that attention is paid to the 'small print' which may have exclusion clauses that affect Service personnel.(A specialist company such as LifeSearch might be able to offer good advice.) . It is also important to ensure that policies chosen will cover the precise nature of the Insured person's employment (i.e. Armed Forces) as well as any dangerous activities (e.g. Service flying, regular parachute descents, bomb disposal, mortar platoon work, mine clearance, diving, service in Northern Ireland etc).
Some policies contain a war risk clause, which, if it is invoked, severely limits the sum of money payable to the beneficiary. Those who already have life assurance policies are advised to ascertain whether its policy contains such a clause.
The cost of premiums increase with age and according to the risk involved. Service personnel should not wait until they are warned for or sent on duty that may be particularly hazardous before taking out a life assurance policy. Some companies may not consider the application or higher premiums may come into force.
However, schemes are available whereby those who have to pay higher premiums, because of Service risk associated with for instance, bomb disposal, service in Northern Ireland, flying or parachuting, may obtain a refund of 90% of extra premiums necessarily paid to cover the Service risks, with a maximum sum assured (this amount is reviewed annually and is currently £130,000).
Whilst certain aspects of Service life incur an additional Service risk, Service personnel should be aware that they should contact their insurer when their personal circumstances change and should definitely be undertaken when they finally leave the Armed Forces.
There are a number of companies that offer Life Insurance, but one that is aware of Service needs is Life Search. For more information click here.
Mortgage Care - Depending on the extent of cover selected, Mortgage Payment Protection Insurance will pay an agreed monthly mortgage payment in the event the insured person becomes unemployed following redundancy or other specified events or cannot work due to accidental disability or illness.
Motor Insurance - There are three basic types of cover that are taken. Third Party, Third Party Fire and Theft and Comprehensive. Third Party covers the required liability insurance required by law. Third party Fire and Theft covers this along with the possible theft of the vehicle should it be stolen (There is normally an excess involved which means that this amount is paid for by the individual before the claim is settled). Comprehensive vehicle policies normally covers all this plus any accidental damage to ones' own vehicle, medical expenses and the loss of personal items within a limit, along with any medical expenses incurred to a specified limit.
Service personnel are encouraged to inform their insurer when their motor vehicle is being left unattended for long periods of time due to operations or exercises, so that the insurer can reassess the cover given.
Service personnel who are drafted/posted overseas should check with their insurer if their motor insurance will be valid in the country that they are drafted/posted to
Insurance policies overseas do not necessarily cover precisely the same risks as in the UK. For example, it is possible that the recovery of damage from a third party may be restricted to a financial limit. Before taking a vehicle abroad it is advisable to consult a motoring organisation about the insurance situation in the country concerned.
Personnel who use their cars on official business must ensure that their motor insurance policy covers this classification of travel. Some companies may classify travel on "Government business" as separate from business travel, equally some companies may classify travel to a new duty station as domestic use not business travel; this should be clarified. Each insurance company has different interpretations on what constitutes business travel. Personnel at air stations should ensure their insurance covers them for access over runways/perimeter roads.
Credit Card Protection - If your wallet or purse is lost or stolen you will need to contact all your cardholders in order to cancel the cards to prevent them from being used fraudulently, and to order replacement cards. It is worth taking out necessary cover to ensure that you are not left out of pocket in case your credit cards are used fraudulently.
Critical Illness Insurance - What would happen to your dependants, your mortgage, loans or your business interests if you became seriously ill? Life insurance is important if you have dependants who will want to continue to live in your home should anything happen to you, but if you die with no dependants your home will probably be sold to cover the mortgage debt. Your priority should be critical illness cover that will pay for your outgoings if you become ill and can't work. Critical illness cover is not the same as mortgage payment protection. With a critical illness policy, you get a lump sum in the event of you suffering from a serious illness or if you have to have certain types of surgery. Unless you have substantial savings, some form of critical illness insurance may well make sense if you are about to take on a mortgage.
Note that it only pays out on certain illnesses on a list. If you get some weird debilitating disease that isn't on the list, you don't get a bean. Not all providers cover the same illnesses either. Most offer the choice between a basic level cover or a policy you can extend to cover other illnesses.
There are a number of companies that offer Critical Illness Cover, but one that is aware of Service needs is Life Search. For more information click here.
Health Insurance - This insurance is designed to cover the costs of private medical treatment for curable short-term illness or injury (commonly known as acute conditions). Most people buy this type of insurance to gain the reassurance of knowing that treatment is available promptly, if they become ill or are injured. As a private patient you can often choose when treatment will take place, the specialist who treats you and the hospital.
Home Insurance - There are two main types of household insurance - buildings and contents. Buildings insurance covers the structure of the building in the event of damage e.g. storm, flood, and fire. It often covers 'outbuildings' as well, like sheds or greenhouses, although you should check the policy carefully. While you are not legally required to have buildings insurance, most lenders make it a condition of your mortgage. Contents insurance covers the contents of your property i.e. everything you have inside it. You can buy them together as one policy, or separately from the same or two different providers.
Please note that often, if your home is vacant for more than 30 (in some cases up to 60) consecutive days, most insurers will invalidate your policy.
It is often a good idea to advise your insurer you are going away if it will be for a significant period
No transit insurance cover is provided under the Services' Contract Scheme (SCS) for furniture removals. Instead, personnel who are entitled to move their household/personal effects at public expense will also be entitled to receive financial assistance towards the purchase of their own transit insurance. This financial assistance will either be given through payment of an enhanced rate of DA, or through payment of an Insurance Allowance under Disturbance Allowance (DA)
Occupants of Family Quarters are reminded they are strongly advised to have adequate insurance to cover their liability for damage or injury whilst occupying the accommodation. The insurance must cover such eventualities as accidental damage caused to the property through negligence or wrongful act including misuse or defective of electrical equipment, Household contents damage and loss including personal property and MOD provided furniture and fittings and Third party cover against injuries or accidents caused to others by the Service person and/or their family or pets.
Travel Insurance - To provide protection when things go wrong when on holiday. There are many problems that can occur; medical problems, cancellations or delays, lost baggage etc. You should check your policy to ensure that there is adequate cover for the following; Medical Expenses, Personal Liability, Cancellation and Curtailment, Personal Accident, Legal Expenses and Personal Belongings.
Holiday insurance should permit compensation in the event of leave being cancelled for operational reasons. Certain companies have policies that recognise the special risks applicable to life in the Service.
Nugatory Holiday Expense (NHE) is payable in respect of actual costs accrued in connection with planned holidays which have had to be subsequently cancelled or curtailed for essential Service reasons. NHE refunds are limited to actual losses incurred.
It is important to ensure adequate medical insurance is taken out, particularly when visiting the USA where it is vital. If visiting another European Community country, free or reduced cost medical care MAY be available. Form E111 "Health Advice for Travellers" is available from Post Offices. This gives full details and an application form which should be completed, signed and stamped by the Post Office before it can be used.
Uniform and Personal Effects
Wherever the Armed Forces are stationed, onboard ship, in barracks, on leave at home/abroad or living in private or MOD property it is advisable to consider insuring personal possessions including Uniform and other items of kit. Although there are a myriad of policies available it is wise to examine the small print to ensure particular requirements are met.
The full value of Uniforms and Military equipment should always be included.
For single/married unaccompanied personnel who do not qualify for Household contents cover, the full value of all Personal Possessions should be included.
Pet Insurance - Special pet insurance plans can cover such eventualities as your pet having an accident, sickness, compensation for having to cancel your holiday, money for advertising or to pay a reward if your pet is lost or stolen. The level of cover varies with each policy, but most provide cover for the following categories: Vet Fees, Death Benefit, Holiday Cancellation, Boarding Fees, Theft/Straying, Advertising/Reward, Third Party Liability and Accidental Damage
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