Not aviation, but advice required

[FJ2ME]

Hi all,

Not an aviation question today but some advice is required and I thought that this forum would help.

I'm thinking of taking life insurance out to protect a mortgage, and am a little unsure as to the options i require.

Critical illness seems unnecessary as we would remain in the service if diagnosed with a critical illness, and if this illness permanently precluded service we would be discharged with a medical pension, n'est-ce pas?

Also, income protection seems like an expensive extra for us as we can reasonably expect to stay on at least until our 16/38 point. (Current shrinkage and redundancies permitting of course...)

So it would seems that I only require cover to pay off the mortgage in the event of death.

Am i correct in these assumptions or have I woefully over-estimated the situation?

Many thanks, FJ2ME

[Cumbrian Fell]

PAX Plus is a reasonable deal and unlike most insurance policies, does not have a 'military exclusion clause'. Interestingly, loss of life due to enemy action is not the only exclusion - death whilst engaged in 'military activities' is frequently included - and when I have pressed this issue with an insurer, they included death in an RTA (I suggested in a staff car on the M4 and the company - a reputable firm - said yes).
Income protection is of very limited value to service personnel, and in my case I recently took out an eye-watering mortgage and decided the extra £50 per month was not worth it. If I was to die or to become VSI, pay (or equivalent) would continue for sufficent time to allow my finances to be sorted. The RAF Benevolent Fund are also known to be helpful in sorting out mortgage assistance. I suggest that if you take out PAX insurance you regularly review the number of units that you buy.
CF

[airborne_artist]

You need to speak to an IFA who has experience of dealing with Service people. Any advice given here could be out of date or well-meant, but incorrect. Check your PMs for the guy I know and use who is very capable.

[Cumbrian Fell]

As I said, in my case and strongly recommend that you use a truely independent IFA. But watch out for military exclusion clauses in ALL insurance/endownment policies.

CF

[Top Bunk Tester]

Do not fall into the misaprehension that the service will look after you after a critical illness, Binnsworth tried to get rid of me within six months of a heart attack, luckily I had a boss who fought tooth and nail to keep me. But even then he could only keep me until the posty I was filling was civilianised. Although offered the post I found I could not afford to take up the post (Civil Servant = Crap money). I had taken out an endowment less than a year before and had refused CI cover because I was sailing with the same rose tinted spectacles that you are using. I have also been fighting MOD for years since in regard to War pension, tax etc. It was even a struggle to get a Military Invaliding pension as well...............Be warned, they'll shaft you when your in, they'll shaft when you're out and through all the hoops in between.

[GlosMikeP]

Do not fall into the misaprehension that the service will look after you after a critical illness, Binnsworth tried to get rid of me within six months of a heart attack, luckily I had a boss who fought tooth and nail to keep me. But even then he could only keep me until the posty I was filling was civilianised. Although offered the post I found I could not afford to take up the post (Civil Servant = Crap money). I had taken out an endowment less than a year before and had refused CI cover because I was sailing with the same rose tinted spectacles that you are using. I have also been fighting MOD for years since in regard to War pension, tax etc. It was even a struggle to get a Military Invaliding pension as well...............Be warned, they'll shaft you when your in, they'll shaft when you're out and through all the hoops in between.
Similar to my experience when I was diagnosed with a tumour weeks before my 38/16 point. I would have been discharged but for the truly magnificent 'blind eye' of the Warrant Officer managing hosp discharges at Wroughton and of the surgeon, both of whom colluded to make sure I wasn't discharged formally until after I'd had a second inspection after the op.

Take out insurance if you can, for you can only get it if you don't need it - and you don't know what's round the corner. And even the war pension etc is not enough if you can't work. Make sure you can pay off the mortgage and have enough cash to keep a decent standard of living based on a 3-5% return.

[Husky007]

I have recently upgraded my life insurance, I have gone through NAFFI Financial as they seemed to know what I was on about. I have taken critical illness and yea I guess it loaded it up a bit especially being a Jockey, but I hope you realise you can claim 90% of the premium back on a quarterly babsis from the RAF because you are being loaded for being in RAF. They used to be a form you filled in and you got it back but what with JPA I aint claimed yet, so I am looking forward to the d@~k dance Ill have to do to with that!! Hope this helps!