Life Insurance

Life Insurance for people in the Armed Forces is a constantly evolving market.  Insurance companies review their attitude to the risk Armed Forces personnel pose, and change their terms and conditions frequently.

Will I pay more as I’m in the Armed Forces?

Members of the Armed Forces can buy Life Insurance and have just as much need as a civilian, maybe more so.  Depending on the insurance company, Armed Forces personnel may pay more, be declined or have additional small print added to their policy.

It’s important to get the right advice as it is possible to buy a policy and be charged no more than a civilian.  If you perform a specialist role such as diving, aircrew, bomb disposal or special forces, you can still get cover but it will come at higher cost.

What if I die as a result of my job or in a war zone?

Most Armed Forces personnel want to ensure that their life insurance policy covers them in a War Zone, or in any eventuality arising from their occupation.

Not all providers will offer this level of cover, so you need to be careful which companies you select.  From company to company you’ll find a variety of attitudes towards your occupation:

• Some may decline you outright
• Others may apply an Occupational Exclusion – this means that you’re covered unless you die as a result of your job
• Some may cover you regardless of your occupation but increase the price accordingly
• Finally, there are a select few providers who will not penalise you for being in the Armed Forces provided you are not a member of the Special Forces, Air Crew or involved in bomb disposal

The good news is that it is possible to obtain cover at the same rates as civilians.

Can Special Forces, Aircrew or Bomb Disposal staff get cover?

On the whole, your options are the same as your colleagues not involved in these specialist activities.  You can get cover.

However, you are very likely to have a rating applied to your policy, meaning you’ll pay more for your life insurance because of the specialist nature of your role.  This price increase can vary considerably from one insurance company to another so it’s important to seek the help of a specialist to ensure you’ve got the best deal.

I’m Special Forces, Aircrew or Bomb Disposal, can I reclaim any price increases?

It is possible to claim, in part, any price increase you pay for your Life Insurance, under the Service Risks Insurance Premium Refunds scheme.

The MOD recognise that specialist roles carry an increased risk and therefore, a price increase from insurance companies.  To help people in these types of roles, the MOD will rebate “90%
of the extra premium paid” for the first £181,065 for policy that started after 01/04/2017.

Full details can be found in JSP 752.

To claim a rebate, you’ll need access to JS Form JPA F010.

I’m due to go to an active theatre of operations, can I still get cover?

If you are under orders to deploy to a hazardous location or theatre of operations within the next 6 months you won’t be able to get cover from the open market.  Don’t forget, you have a 4 times salary Death in Service benefit through the MOD pension scheme, so you do at least have some cover.