Service Life Insurance
Thread Starter
Join Date: Jun 2005
Location: uk
Posts: 29
Likes: 0
Received 0 Likes
on
0 Posts
Service Life Insurance
Sorry if this is repeated elsewhere but I could find a thread on it.
I've just received a leaflet for Service Life Insurance offering insurance for armed forces personel up to £200000. I'm currently paying more than £200 a month for insurance (although I claim much of this back) and this scheme means I would only pay £22 a month.
Basically I want to know if anyone has signed up, does it seem a good deal and can you take out more than one policy (to cover more than £200000 payout)?
I've just received a leaflet for Service Life Insurance offering insurance for armed forces personel up to £200000. I'm currently paying more than £200 a month for insurance (although I claim much of this back) and this scheme means I would only pay £22 a month.
Basically I want to know if anyone has signed up, does it seem a good deal and can you take out more than one policy (to cover more than £200000 payout)?
Join Date: Sep 2006
Location: Lynehamshire
Posts: 79
Likes: 0
Received 0 Likes
on
0 Posts
Life Insurance
Faarn,
I am not sure if you are talking about the service 'PAX' insurance plan, if not then consider it; as not only does it provide good cover on you and the families lives, but critical illness can be added as well as cover being included whilst carrying out hazardous sports such as rock climbing or microlighting.
Note : It also comes directly from your pay packet so you aren't really even paying for it.....I Wish !
Look it up at least before you commit yourself to another.
CRPxGood
I am not sure if you are talking about the service 'PAX' insurance plan, if not then consider it; as not only does it provide good cover on you and the families lives, but critical illness can be added as well as cover being included whilst carrying out hazardous sports such as rock climbing or microlighting.
Note : It also comes directly from your pay packet so you aren't really even paying for it.....I Wish !
Look it up at least before you commit yourself to another.
CRPxGood
Join Date: Mar 2005
Location: UK, for now.
Posts: 62
Likes: 0
Received 0 Likes
on
0 Posts
I applied last month for the maximum 200K. Costs me £24 pcm for 20 years, but it's only a life insurance, not personal accident like PAX. It was very easy though - all I did was fill in the form - doesn't even ask about your specialisation - and less than a week later I received all the documentation in the post. Job done!
I don't know about multiple policies, but I somehow doubt it, otherwise they might as well just let you have a bigger policy in the first place.
I don't know about multiple policies, but I somehow doubt it, otherwise they might as well just let you have a bigger policy in the first place.
Join Date: Dec 2003
Location: UK
Posts: 19
Likes: 0
Received 0 Likes
on
0 Posts
Having investigated quite few civvie policies the 'normal' rate is in the order of £18 per month for 200k cover, this is loaded to about £100+ per month for military aircrew, and even then it does not necessarily cover you in an active theatre. It seems hard to believe that a civvie company can cover you regardless of trade, including war and terrorist action for little more than an office worker would pay. They also ask virtually no questions, anybody who has applied elsewhere will know you normally get a large questionnaire to fill in and they will ask to view your medical records etc. I don't know how they are doing it (has it got a subsidy from the government?) - I think I might apply before they change their minds!
Last edited by Bravo2; 12th Jun 2007 at 18:53.
Join Date: Aug 2000
Location: UK
Posts: 104
Likes: 0
Received 0 Likes
on
0 Posts
The PAX+ scheme has life cover up to a max of £150k and seems pretty comprehensive, also covering death by the 'big nasties' (diseases that is).
Not sure if I'm being naive in hoping it will pay the mortgage if I end up as a greasy stain on a hillside.
Ray
Not sure if I'm being naive in hoping it will pay the mortgage if I end up as a greasy stain on a hillside.
Ray
Join Date: Nov 2004
Location: Lincs
Posts: 154
Likes: 0
Received 0 Likes
on
0 Posts
Love it! No loading, coverage for all theatres and eventualities. Much better than PAX (IMHO) if you have any danger of deploying. No hassle in claiming back 90% at end of year and supported by MOD. They got this one right!!! Nice one.
They got this one right!!! Nice one.
Join Date: Nov 2004
Location: Lincs
Posts: 154
Likes: 0
Received 0 Likes
on
0 Posts
Sorry, wasn't clear on that was I? With other schemes you can claim up to 90% of the 'additional loading' back from the MOD at the end of the year. In my case this would mean I could claim back 90% of the £120 loading applied each month to my £18 premium. With SLI I pay a simple monthly premium (~£18) and am not loaded, and therefore do not need to claim back at the end of the year. Hope this clarifies my earlier post.
Join Date: Nov 2004
Location: Lincs
Posts: 154
Likes: 0
Received 0 Likes
on
0 Posts
Services Life Insurance provided by Sterling Life. Should be easily googled. otherwise cut and paste this:
https://www.servicelifeinsurance.co....px?WebPageId=8
https://www.servicelifeinsurance.co....px?WebPageId=8
Join Date: Jan 2005
Location: Somewhere
Posts: 868
Likes: 0
Received 0 Likes
on
0 Posts
Doesn't the monthly premium depend on how long you take out the premium for? It seems the longer the period you put in on the website, the higher the monthly premium. What period is the £18 mentioned based on?
Thanks.
Thanks.
Join Date: Nov 2004
Location: Lincs
Posts: 154
Likes: 0
Received 0 Likes
on
0 Posts
Wizard,
premiums are based on your age, whether you smoke, how much you want coverage for and for how long. Therefore, although £18 works for me, your premium may be slightly different. However, I think the point to note is that any serviceman/woman of the same age applying for the same amount of cover, for the same period, will pay exactly the same premium. This is regardless of duties (i.e SF or Admin pay the same) and we are covered for all theatres and CBRN attacks. Hope this helps, as you may guess I am a convert!
premiums are based on your age, whether you smoke, how much you want coverage for and for how long. Therefore, although £18 works for me, your premium may be slightly different. However, I think the point to note is that any serviceman/woman of the same age applying for the same amount of cover, for the same period, will pay exactly the same premium. This is regardless of duties (i.e SF or Admin pay the same) and we are covered for all theatres and CBRN attacks. Hope this helps, as you may guess I am a convert!
Join Date: Jan 2005
Location: Somewhere
Posts: 868
Likes: 0
Received 0 Likes
on
0 Posts
Wizard,
premiums are based on your age, whether you smoke, how much you want coverage for and for how long. Therefore, although £18 works for me, your premium may be slightly different. However, I think the point to note is that any serviceman/woman of the same age applying for the same amount of cover, for the same period, will pay exactly the same premium. This is regardless of duties (i.e SF or Admin pay the same) and we are covered for all theatres and CBRN attacks. Hope this helps, as you may guess I am a convert!
premiums are based on your age, whether you smoke, how much you want coverage for and for how long. Therefore, although £18 works for me, your premium may be slightly different. However, I think the point to note is that any serviceman/woman of the same age applying for the same amount of cover, for the same period, will pay exactly the same premium. This is regardless of duties (i.e SF or Admin pay the same) and we are covered for all theatres and CBRN attacks. Hope this helps, as you may guess I am a convert!
Join Date: Jul 2005
Location: UK
Posts: 24
Likes: 0
Received 0 Likes
on
0 Posts
I believe that only aircrew can claim back the premium loading (OK, OK, should have tried harder at school/OASC etc!). I'm in PAX, but the maximum payout is not all that much, certainly not enough to provide for a family. I recently tried to take out an extra policy, but try doing that when you have notice to deploy on an op. Even going through a specialist broker only one company would touch me, with a massive premium loading, and I could not claim back a penny of it.
If there is a company out there who will cover you in an operational theatre without a loading then please post the name: it's not advertising, it would be a public service! PM otherwise...
If there is a company out there who will cover you in an operational theatre without a loading then please post the name: it's not advertising, it would be a public service! PM otherwise...
Join Date: May 2005
Location: Nigit
Posts: 435
Likes: 0
Received 0 Likes
on
0 Posts
I have mortgage cover that is a guaranteed fixed premium for the life of the policy (it stops when my mortgage is paid) and it covers me for all in-service risks and doesn't load me for being a heli driver. And it covers me for critical illness too - well worth having.
My wife is a big cheese in the life insurance world and she reckons it's one of the best policies out there if you're after mortgage cover. It's through Tesco of all people and underwritten by Norwich Union, who are one of the biggest. Reasonable priced and good cover. Not sure if it's still available, but worth a try.
I think I have a few PMs that she's written to people in the past which I would be happy to forward if they're relevant.
My wife is a big cheese in the life insurance world and she reckons it's one of the best policies out there if you're after mortgage cover. It's through Tesco of all people and underwritten by Norwich Union, who are one of the biggest. Reasonable priced and good cover. Not sure if it's still available, but worth a try.
I think I have a few PMs that she's written to people in the past which I would be happy to forward if they're relevant.
Last edited by ProfessionalStudent; 13th Jun 2007 at 10:09. Reason: To point out that as she isn't a FSA registered IFA, she isn't legally able to give advice, but she knows an awful lot more than most IFAs anyway...
Join Date: Jul 2005
Location: UK
Posts: 24
Likes: 0
Received 0 Likes
on
0 Posts
PS,
I was directed to Norwich Union too, but if you are stupid enough to buy a house after you have been notified of an operational deployment the premiums get massive. However, once you have a policy at the 'I'm not going anywhere rate' you are under no obligation to inform them of any deployments in the future. There must be a logic to this but I can't work it out.
I was directed to Norwich Union too, but if you are stupid enough to buy a house after you have been notified of an operational deployment the premiums get massive. However, once you have a policy at the 'I'm not going anywhere rate' you are under no obligation to inform them of any deployments in the future. There must be a logic to this but I can't work it out.
Join Date: May 2005
Location: Nigit
Posts: 435
Likes: 0
Received 0 Likes
on
0 Posts
Here are the PMs Mrs ProfStude sent in Jan 06
Hello there. Well, if it were me I'd stay away from Pax as they're more there to offer lump sums if you hurt yourself, with limited payouts if you die? If you want the best of all worlds and to try to keep your premiums down I would go one of the following options?
a) Cover both of you for Life and Critical Illness for the whole mortgage but on a decreasing basis, ie the cover amount will run off at the same rate as your mortgage. This keeps the cost down as the sum is getting smaller as you get older hence the lower premium. This means your mortgage is paid off should either of you go but you'd still need to cover the bills. You could put 3 months worth of bills in a rainy day account somewhere to cover that.
b) Some policies offer the option of having the Critical Illness cover only on one life. This would keep the cost down. You can also have the death cover for the whole mortgage but choose to have a lower limit for the CI so that you get to pay off a chunk of your mortgage early (plus you should have your disability pension). This could allow you to take a lesser job and still cover the mortgage payments. If you went on to die (hopefully not!) then the residual life cover would fully pay off the rest of the mortgage.
The loading is specifically for your job but the normal premium only differs by your age, your sex and whether you smoke or not (oh and if you're fat and drink too much that won't help). Often the prices go up as you hit the big birthdays so if you have any looming get it sorted before! The hike from 39 to 40 s quite notable for instance.
Should mention again that you really are better off with Guaranteed Premium Critical Illness so that you know what you're paying all the way through. Some policies have guaranteed premiums and some have reviewable ones. Reviewable means that you have it fixed for the first 5 years then it's amended depending on the insurers opinions on mortality trends and losses over that period. Also ,if you've had any high blood pressure readings, if you're overweight, smoke or have a poor family history then Critical Illness premiums can hit the roof, so have a think about this beforehand.
There are loads of variations on what you can do and your choice should depend on whether your spouse works or not or whether you're the main wage earner?
So... it's worth checking with Norwich Union to see if they still give standard terms to rotary crew. If you look on the internet you should be able to get a number to call? Otherwise go and have a look at the other supermarket offerings and see if any of them say "underwritten by Norwich Union". The direct prices from supermarkets are often right up there with the cheapest. Naafi are good too (anecdotally) and they came up with decent terms (albeit with loadings for rotary ac) and cheapest around for male mid 30's non smoker.
Things you need to ask when getting a quote..
a) is there a war exclusion on the life cover? (most should say no to this). This means that you will be covered in the event of your death whereever you are.
b) if you're going for Critical Illness ask about war exclusions for this. They might exclude all the accident related claims like paralyis, loss of limb etc. Also, as aircrew(military or civvie) expect to get an amended Total Permanent Disability definition. What this means in Plain English is that instead of your policy paying out the full sum assured if you couldn't fly, that instead you will have to be significantly disabled instead, for example unable to climb stairs on your own, wash yourself and get dressed etc (and not just after Happy Hour!!)
So, once you've tracked down the cheaper cover with the least exclusions you can reclaim any loading for your occupation. The insurers only apply a charge for the first 7 yrs of the contract, and you can get 90% of it back annually in arrears. (there may be a maxima on this so I'd check). If you give up flying altogether you can write to the insurer and ask them to reassess you (not all do this so check before taking out the cover). If you go down the airlines route then most airline pilots aren't rated (so you might still be able to apply to have any loading removed), but will still have their definitions amended on the total disablement part.
You probably are best off looking at the top providers first, the good ones being Friends Provident, Norwich Union, Scottish Provident, Scottish Equitable, Standard Life, Royal Liver. These are big companies that shouldn't go bust, and should be paying out on policies for years to come.
I think you might be best off speaking to Naafi and asking for their cheapest joint life Decreasing Term Assurance mortgage cover (with or without CI, if you get them to quote for both then you can weigh up the cost difference), that ideally has no loading for rotary, and has no war exclusion on the life cover part. If you have a monthly outlay in mind they can multiquote to see what they can get you for what you want to pay?
Sorry this has rambled on but insurance is a pretty big subject. Once you've got some quotes if you get any more questions that you want an independent view on then just mail again. Bear in mind that brokers generally are only paid commission so they only get paid on what they sell, not on giving advice! Some will look at 100 companies prices, some will look at 5, ask about that too!
Hope this assists.
Mrs ProfStude
a) Cover both of you for Life and Critical Illness for the whole mortgage but on a decreasing basis, ie the cover amount will run off at the same rate as your mortgage. This keeps the cost down as the sum is getting smaller as you get older hence the lower premium. This means your mortgage is paid off should either of you go but you'd still need to cover the bills. You could put 3 months worth of bills in a rainy day account somewhere to cover that.
b) Some policies offer the option of having the Critical Illness cover only on one life. This would keep the cost down. You can also have the death cover for the whole mortgage but choose to have a lower limit for the CI so that you get to pay off a chunk of your mortgage early (plus you should have your disability pension). This could allow you to take a lesser job and still cover the mortgage payments. If you went on to die (hopefully not!) then the residual life cover would fully pay off the rest of the mortgage.
The loading is specifically for your job but the normal premium only differs by your age, your sex and whether you smoke or not (oh and if you're fat and drink too much that won't help). Often the prices go up as you hit the big birthdays so if you have any looming get it sorted before! The hike from 39 to 40 s quite notable for instance.
Should mention again that you really are better off with Guaranteed Premium Critical Illness so that you know what you're paying all the way through. Some policies have guaranteed premiums and some have reviewable ones. Reviewable means that you have it fixed for the first 5 years then it's amended depending on the insurers opinions on mortality trends and losses over that period. Also ,if you've had any high blood pressure readings, if you're overweight, smoke or have a poor family history then Critical Illness premiums can hit the roof, so have a think about this beforehand.
There are loads of variations on what you can do and your choice should depend on whether your spouse works or not or whether you're the main wage earner?
So... it's worth checking with Norwich Union to see if they still give standard terms to rotary crew. If you look on the internet you should be able to get a number to call? Otherwise go and have a look at the other supermarket offerings and see if any of them say "underwritten by Norwich Union". The direct prices from supermarkets are often right up there with the cheapest. Naafi are good too (anecdotally) and they came up with decent terms (albeit with loadings for rotary ac) and cheapest around for male mid 30's non smoker.
Things you need to ask when getting a quote..
a) is there a war exclusion on the life cover? (most should say no to this). This means that you will be covered in the event of your death whereever you are.
b) if you're going for Critical Illness ask about war exclusions for this. They might exclude all the accident related claims like paralyis, loss of limb etc. Also, as aircrew(military or civvie) expect to get an amended Total Permanent Disability definition. What this means in Plain English is that instead of your policy paying out the full sum assured if you couldn't fly, that instead you will have to be significantly disabled instead, for example unable to climb stairs on your own, wash yourself and get dressed etc (and not just after Happy Hour!!)
So, once you've tracked down the cheaper cover with the least exclusions you can reclaim any loading for your occupation. The insurers only apply a charge for the first 7 yrs of the contract, and you can get 90% of it back annually in arrears. (there may be a maxima on this so I'd check). If you give up flying altogether you can write to the insurer and ask them to reassess you (not all do this so check before taking out the cover). If you go down the airlines route then most airline pilots aren't rated (so you might still be able to apply to have any loading removed), but will still have their definitions amended on the total disablement part.
You probably are best off looking at the top providers first, the good ones being Friends Provident, Norwich Union, Scottish Provident, Scottish Equitable, Standard Life, Royal Liver. These are big companies that shouldn't go bust, and should be paying out on policies for years to come.
I think you might be best off speaking to Naafi and asking for their cheapest joint life Decreasing Term Assurance mortgage cover (with or without CI, if you get them to quote for both then you can weigh up the cost difference), that ideally has no loading for rotary, and has no war exclusion on the life cover part. If you have a monthly outlay in mind they can multiquote to see what they can get you for what you want to pay?
Sorry this has rambled on but insurance is a pretty big subject. Once you've got some quotes if you get any more questions that you want an independent view on then just mail again. Bear in mind that brokers generally are only paid commission so they only get paid on what they sell, not on giving advice! Some will look at 100 companies prices, some will look at 5, ask about that too!
Hope this assists.
Mrs ProfStude
I asked her earlier about "notice to move" and what constitutes it in the eyes of the insurance industry. She stated that if you know you are or deploying or expect your Sqn/Unit to in the near future, that counts as "under orders" and few companies will touch you. But then if your deploymeny is not on the long-cast then you could argue the case. It's a sticky one and the onus would be on the insurance company to PROVE you knew you were under orders.
Bad livin'
The above covers most of the policy conditions. The cost is probably about £20 per £100k of cover per person for life and CI - fixed premium (though this may have finished) and reducing throughout to cover mortgage repayments only. Any more, please PM me and I'll see what I can do, but Mrs ProfStude is in a exam frenzy at the moment and it may take some while for a reply.
Join Date: Nov 2004
Location: Lincs
Posts: 154
Likes: 0
Received 0 Likes
on
0 Posts
Claude,
I believe that you wil find Services Life Insurance by Sterling Life the one to go for. It has been specifically designed for Service needs and no one gets loaded. Seriously, it is that good. Covered for eveything, anywhere, (including Service recognised 'Extreme sports!') This is the one that the MoD has been organising on our behalfs. Your PSF / HR Admin will have details. I filled in the form (10 minutes max) and 2 days later received my signed up insurance. There is none of this 'are you under orders?' bolleaux (my force is literally all under orders permanently!) and there is no such thing as loading. A Harrier mate pays the same as a Herc mate who pays the same as a Regt gunner who pays the same as a PTI, etc.
I wish I had shares in this company!
BF
(I am not a Financial Advisor, in fact I barely have enough of my own to warrant a bank account. However, for what is worth I think this is chuffing good and all Servicemen & Women should at least have a good look at this.)
I believe that you wil find Services Life Insurance by Sterling Life the one to go for. It has been specifically designed for Service needs and no one gets loaded. Seriously, it is that good. Covered for eveything, anywhere, (including Service recognised 'Extreme sports!') This is the one that the MoD has been organising on our behalfs. Your PSF / HR Admin will have details. I filled in the form (10 minutes max) and 2 days later received my signed up insurance. There is none of this 'are you under orders?' bolleaux (my force is literally all under orders permanently!) and there is no such thing as loading. A Harrier mate pays the same as a Herc mate who pays the same as a Regt gunner who pays the same as a PTI, etc.
I wish I had shares in this company!
BF
(I am not a Financial Advisor, in fact I barely have enough of my own to warrant a bank account. However, for what is worth I think this is chuffing good and all Servicemen & Women should at least have a good look at this.)
