30% increase in Pax Premiums from 1 Mar 08

Discussion in 'Finance, Property, Law' started by CastleHills, Jan 14, 2008.

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  1. Anybody seen the note about changes to the PAX premiums and benefits doing the rounds? Anyone else think this is just another slap in the face...? In a nutshell, Ops get more dangerous (so we get a few more scenarios to claim under) and we pay for the privilidge. £80 a month (for the full works) is getting ridiculous...

    If Aon/AIG are making a loss then that's for them to level across the AIG portfolio or for MOD to place against CP. Its not a premium, in my view, that should be passed on in full - as it seems - to the boys and girls on the ground... :x
  2. I had a gem from my UPO just yesterday. There is a company called abacus cover (abacuscover.co.uk) that is doing an insurance which is very similar to PAX.

    Go to the site fill in an enquiry form and they will call you back and quote (I'm still waiting after two days though!!)
  3. From the Mar 08 Soldier Magazine:

    Conflict cover goes online

    SOLDIERS who want to protect the financial futures of their families by insuring their lives through the Government-guaranteed Service Life Insurance scheme (SLI) can now do so online.

    Monthly premiums start at just £5, while £8.06 will buy £100,000 cover for 12 years for a male non-smoker under 30. The policy includes all trades, including Special Forces, worldwide operations and hazardous pursuits such as skydiving.

    No medical is required and the benefits – the maximum is £200,000 – are tax free.

    The scheme is provided for the MoD by Sterling Life and has been made very simple to access. There are no lengthy application forms to fill in and no expensive cancellation or exclusion clauses.

    Unit admin offices and HIVEs have brochures and application forms or you can join online at www.servicelifeinsurance.co.uk
    A similar scheme in the USA, run on an opt-out basis, is used by 99 per cent of Service personnel. In the UK, where SLI has been available since May last year, fewer than one per cent are members.

    Troops who already have Pax personal accident insurance can more than double their cover in the event of death by signing up for SLI. As reported last month, Pax premiums are rising by 30 per cent due to a sharp increase in injuries and deaths on operations.
  4. I have been told about S.L.I. as well, and it looks good, but if you read the documentation it is only a life insurance, unlike PAX and ABACUSCOVER which will also cover for injuries etc.

    So, this one is OK if you die but you would get nada if you were injured, no matter how seriously.
  5. Paratus,

    Apologies you didn't get a reply form our website as quickly as I would have hoped. I have sent you a PM.
  6. No doubt the impact of the biggest supplier in the market increasing prices will cause ripples throughout the business. One of our chief concerns is the confusion between Life Insurance and Personal Accident cover. We always encourage personnel to shop around and get advice - we are confident that our prices will stand comparison.

    Forces Financial is a trading name of Stuart Harvey Insurance Brokers Limited who is authorised and regulated by the Financial Services Authority. Registration number 301858. Registered Office: Globe House, 24 Turret Lane, Ipswich, Suffolk, IP4 1DL
  7. Indeed, and one I asked on a number of occasions on a number of threads only to have it ignored.
  8. PAX cover is provided by a commercial company. They are under no obligation to insure you at all. They would certainly not be clever to charge you less and give the increased premiums to their other customers in more competetive markets. The chances of you being killed or injured have gone up and your premiums have been adjusted accordingly. This is no different from an insurers perspective to you buying a faster car or moving to a high theft area and being charged more to insure it accordingly.
  9. Personal Accident is a temporary insurance designed to pay out if the insured receives a qualifying physical injury or is left permanently disabled. When I say temporary - what this means is that the insurers can, if necessary, change to price of the insurance, the amount of cover, or may add or remove benefits as they see fit...
    As for qualifying injury... all insurers will produce a list of what is covered, limbs, sight,, hearing etc are all common ones.
    Some providers of PA also include a Death Benefit, which pays a sum out in the event of death. This is subject to the same rules as above in that in can be changed, removed or price increased at any time.

    If a soldier has a particular need for a payout in the event of death, then a better and more secure way to do it is by taking out a LIFE INSURANCE policy.

    This only pays out in the event of death, not injury. Although unlike PA it can take a few weeks to set up - the insurers are contractually obliged to maintain cover at the set price for the term of the insurance as long as the premiums are paid. The term can be anything from 1 - 40 years depending on circumstances. This also means that cover can continue after military service to cover for example a mortgage.

    You should be aware however that standard life insurance is not available to personnel within 6 months of a deployment - or to those already deployed. The MOD brought out a Life Insurance policy called SLI to allow these people to get cover - but it is much more expensive than standard Life cover - so my recomendation is if you have no other option take SLI for the duration of your tour and then on returning you can shop around for a cheaper standard policy.

    Sorry if there is too much detail in here but its a very important subject and I wanted to be as comprehensive as possible.


    Abacus Limited is authorised and regulated by the Financial Services Authority. Member of SIIAP.
  10. In the words of Andy Pipkin.........

    Yeah a know :D

    Don't like piggybacking life on the back of an accident policy, and although opinions are like arrseholes, my own personal opinion is that its wrong... bordering on bent
  11. ViroBono

    ViroBono LE Moderator

    This seems to come up fairly regularly, so there'll be a sticky at the top of this forum soon describing the different types of policy.
  12. The_Duke

    The_Duke LE Moderator

    Close, but nowhere near a cigar.

    A personal accident policy only responds in the event of an accident, which is often described as a sudden, specific, identifiable event from violent, external means. Usual benefits can include accidental death, loss of eyes or limbs by accident or the permanent total disablement from your usual occupation by reason of an accident. Just to hammer the point home - a personal accident policy only responds in the event of an insured accident. They can occasionally be extended to include limited benefits in the event of sickness, but never death arising out of sickness. Run over by a bus? Covered. Heart attack? Not covered.

    Personal accident policies are for short terms (usually not more than 5 years). Contrary to the post above, once a policy has been accepted by the insurers, terms cannot be revised within the currency of the policy unless the policy is cancelled and replaced or is subject to a rate review clause. Read the wording carefully!

    A life policy will pay the sum assured in the event that the person assured dies as a result of accident OR sickness. They can be "whole life"; ie guaranteed until you die as long as you keep paying the premiums on time, or "term life" which is only for a fixed period (often a maximum of 10 years). Run over by a bus? Covered. Heart attack? Covered.

    Alongside these sits "critical illness" which pays a fixed benefit if one of a number of defined illnesses are first diagnosed during the policy period.

    All policies contain terms, conditions and exclusions. Make sure that you understand them before you make the decision about which policy to buy.

    Also consider who you are protecting. A single soldier with no children has a definite need for loss of eyes/limbs cover, but less so for life as he has no-one depending on him. A young person with children definately needs PA including accidental death, but may take a view on life cover as statistically he is more likely to die from an accident. As he gets older, life cover becomes more relevant as he is more likely to die from natural causes.

    Abacus - if you are going to post "advice" about insurance, at least pay people the courtesy of giving accurate and unbiased information, rather than skewing it towards the products you sell.
  13. In reply to the Duke...

    I really dont see how you could take anything I have said as skewed towards anything I sell.

    All it was intended to do was give a brief outline as to the difference between Life and Personal Accident insurance.

    As to my knowledge, the PA offered by Abacus and the other main providers are reviewable - and terms and price can change - if you know otherwise I would be grateful if you could give details as this is something I was not aware of.

    As for your comments on Life Insurance, I simply cannot understand where you get the idea that term insurance is often offered to a maximum of ten years. Depending on the company involved, in can be a maximum of 40 years to alternatively to a set age ( 70 or 75 for example ). Whole of life policies, while available, account for a tiny percentage of policies.

    At no time did I mention a specific product, or try and highlight anything Abacus provide against another company.
  14. In simple terms, it does what it says, accident insurance pays out for an accident - very handy for you if you survive an accident but cant work afterwards. (everyone should consider having this)

    Life insurance pays out if you die - very handy for your wife and kids but no benefit to you personally. ( Anyone with a family should consider having this)

    All policies are slightly different - no substitute for reading the policy documents.

    PAX and SLI are the two obvious choices for members of the Forces as any other offerings are likely to have exclusions that render them useless to us. Do some reading and make your choice but remember, neither of these companies is MOD owned or subsidised. They are both commercial companies and have to make a profit.

    All insurance is gambling except Life insurance (The only guaranteee in life is death) and even then it is a question of statistical likelihood of you dying at any given time.