DINCOME / Pax Insurance

[Professor Plum]

Hi All,

I currently pay into DINCOME, and I've had a look at what other insurance products are around just in case the worst happens. I'm thinking of taking out a policy with Pax Insurance, and I'm just wondering what you guys all think of Pax. Trinity insurance also do personal accident insurance.

Service Life Insurance also appears to be better value for money compared with DINCOME for someone of my age (late twenties).

I'm just curious as to what other people pay into, and whether anyone has any particular thought on Dincome / Pax / Service Life Insurance.

Cheers!

[getsometimein]

PAX charged me £68 a month for £150k of cover...

I now pay £50 a month, get £400k life cover, £75k illness. My wife gets the same, my 2 kids get £75 life cover. All under one policy.

Its done through a broker, but underwritten by Scottish Provident.

I hear those that had cover through PAX on the Nimrod incident in 2006 struggled to get the money out...

[Rote_8]

I have PAX Personal Accident (Family) + Life insurance cover, but the premium has increased from £4.50 per unit per month in 2008 to £7.00 per unit per month in 2010.

Due to this 55% increase in 2 years, I am reconsidering...

[Al R]

PAX services a need - if you are risk averse, if you deploy regularly and if you are in a high threat role. But, if you don't deploy a lot, if you think you might stand a greater chance of getting injured in an RTA in the UK, if you are cost aware.. then there are lots of really good options out there. One or two carriers are currently, pro RAF.. but at the same time, not so 'pro' Army/Navy - so its a good time to consider all 'Life' cover options.

Some carriers take it further - they will load the premiums of the rotary fleet but not AT for instance, and some classify Rocks as 'admin' (that pains me to say it) - and most importantly, it covers getting killed on Active Service if you take out cover before you are notified of deployment or 6 months before. Think about the benefits of getting covered early in life - the premiums are lower beause you stand a lower chance of dying and because you are less likely to have a poor medical history.

A 20 year old taking out 300k worth of Life Cover for 20.. 25 years can get it for not a lot. Take into account the 4 times Death in Service benefit when working out your cover. Whilst I'm prattling on, take into account AFCS entitlement, (future) family and house needs too, and take proper advice - tailored, more suitable cover can be obtained cheaper and more conveniently than via a comparison website.

Cost of raising child breaks £200,000 | Money | The Guardian (http://www.guardian.co.uk/money/2010/feb/23/child-cost-inflation)

[getsometimein]

Just dont go with PAX is the bottom line...

They rip you off because people sit with 1 unit until they deploy, then up it to 15 for the duration of their deployment.

This means there is no cash in the pot to pay out for claims... The only way around it is to up the cost, and you still only get 150k at the end of it all.

[Wrathmonk]

it covers getting killed on Active Service if you take out cover before you are notified of deployment or 6 months before

Al

You are clearly far more of an expert than I but from bitter experience I found it very difficult (in fact I gave up in the end and stayed with PAX) to find someone who would guarantee cover for 'killed on Active Service' - this was just past the original intervention in Afg (and I'm talking the post 9/11 response which didn't involve me then (FJ)) - many of them said (words to the effect of) that UK were at 'war' and therefore all servicemen could be called onto ops at little or no notice and were to all intents and purposes 'notified of deployment'.

Read the small print very, very carefully. I rate insurance companies alongside bankers - they will do everything they can to avoid paying out :mad:

I would agree, however, that PAX are not cheap!

[Al R]

Wrath,

I agree - that small print is vital.

I deal with dozens of insurance companies and what is good for client 'A' is not always good for client 'B'. Similarly, my preferred carrier for RAF clients today, might not always be the best one tomorrow.

Life cover for RAF clients in the event of death on Active Service is covered currently though - if the circumstances I mentioned above, are in place. EOD ops, Rotary, FJ do pay that little bit more though - as would a North Sea Diver/Trawlerman etc.

[Professor Plum]

Al R, Getsometimein,

Do you have any links or contact details for any insurance brokers/companies you use, or recommend? Would be greatly appreciated!

I've often thought that DINCOME/Pax aren't the best value for money.

Cheers.

[getsometimein]

Try Military Direct - Their number is 0800 731 1628.

They got me a deal with Scottish Provident, a far better deal than PAX could do for operational aircrew flying in theatre.

[Al R]

Plum,

Without knowing them, the number (below) seems like it is worth a punt. Admiral The Lord Boyce reported to g'ment on improvements to the Armed Forces Compensation Scheme a couple of months ago, which were largely taken onboard in their entirety, and many immediately. The revised Terms & Conditions and the current tariff for injuries received are largely overlooked when people take out PAX, which is coming under increasing pressure to justify itself to the mainstream market. Also, bear in mind your estate will get four times your salary if you die in Service - many people don't take that into account - that stops when you leave of course, by which time you may well be old and hosting a pretty damning bulging personal medical file which can count against you - so always take advice on getting life cover whilst you are young, and medically and physically fit.

PAX can be just the ticket, but the reality is, it is sold to recruits and cadets who make decisions quickly or to people who are simply too busy and who don't have the time to research better/cheaper options. For the first 10-15 years of its existence, claim demands on it were pretty languid but now that claims are being made, the pressure on it mounts. Absolutely, in some situations, just getting cover quickly is the priority and going for PAX has to be, unquestionably, the right thing to do (I certainly did a few times when I was in). But as ever, life goes on so subsequently looking at options after you've unpacked your bergan gets overlooked with time. Consider too, is PAX good for you and your posting circumstances? If you arent't deployed overseas, is it in your best interests to continue to pay high premiums for a IED/High Velocity firearms benefit that you quite possibly will not be claiming on? I accept completely that the ethos of teamwork means those exposed to higher risk are quite happily getting subsidised by their mates who are not - but from your perspective, if you get injured in an RTA in the UK where you might spend most of your time - are you still covered with PAX? Read the Terms carefully.. think what is best for you - everyone's needs are different.

I am certainly not advocating anyone blindly stop paying PAX. I had it, and it gave me great peace of mind, and I was grateful. Granted, I was pretty ignorant to the options at the time, but the knowledge that I had cover was a comfort whenever on Ops. However, what I didn't do, was look at thinks properly. When working out the cover you need now and in the future, consider what you'd get free with AFCS/Death in Service anyway and identify out any potential shortfall exposure with a simle cost benefit analysis and not forgetting to include children now, or any who might turn up. Use an Independent Financial Adviser who knows which are the best carriers and how to apply to reclaim any specific Afghan loading that you might get pinged with, and remember that Insurance is simply a means to an end - it is the building block for everything else. Also, use it as a single component in a larger picture - there is little point in getting decent Protection for you and/or your family if you haven't also subsequently squared away future living home/ investment/ retirement needs in some form of cohesive overall strategy.