Being Deployed? What about Life Insurance?

Discussion in 'Finance, Property, Law' started by Forces_Financial, Apr 27, 2004.

Welcome to the Army Rumour Service, ARRSE

The UK's largest and busiest UNofficial military website.

The heart of the site is the forum area, including:

  1. It is a well-known problem that most insurance companies will not cover military personnel on standby. The general recommendation is to get covered early – Life Insurance is generally cheaper the younger you are, and you are more likely to get cover if you are not due to be deployed.

    However, if you are due to be deployed, you still have options…

    NAAFI Financial’s Personal Accident Insurance can be taken out at any time, even if you are on standby, and can include Life Cover up to £150,000 should you require it.

    It also includes the following features:
    • · Guaranteed acceptance for all service personnel under 60
      · Benefits paid tax-free under current UK law
      · Family Cover available
      · Critical Injury and Burns Cover
    You can chose ‘Super Cover’ for the additional benefits:
    • · Cover for hazardous activities (leisure as well as work)
      · Cover for professional sports activities
      ·  Protection against loss of hazardous duty pay (such as flying pay)
    In fact, we have 15 levels of cover from £10,000 to £150,000… our team will help you choose the package that suits you. To find out more, visit our website or telephone us on 00800 0001 02 03 free from the UK and Germany (+44 1722 342 245 from the rest of the world).

    You can also contact your local branch – http://www.naafi-financial.com/contact/contact_useful.asp]click here[/url] for contact details:

    Our locations - UK: Abbeywood • Aldergrove • Brize Norton • Catterick • Collingwood • Faslane • HMS Raleigh • Lisburn • Plymouth • Portsmouth • RAF Cosford • RAF St Mawgan • Tidworth • ATRs: • Bassingbourn • Lichfield • Pirbright • Winchester • Germany: Fallingbostel • Gutersloh • Hohne • JHQ • Osnabruck • Sennelager • Cyprus: Akrotiri • Dhekelia • Episkopi • Gibraltar
    Car sales - Germany: Bergen-Hohne • Gutersloh • Osnabruck •JHQ • Sennelager
     
  2. Your first policy

    Research from Sainsbury's Bank suggests that 3.5 million of us are likely to take out life cover this year. Shopping around for a good deal is a must. But it is crucial to get the right amount of cover too. Experts reckon couples should have about 10 times the income of the highest earner. That can seem over the top as generally people take out life insurance to cover mortgages and as yet no lenders are letting people borrow ten times their earnings. But it is worth working out how much money you would need if the worst happened. Around one in 20 adults dies while their children are still financially dependent. Advisers reckon parents should keep life insurance going until their children are, financially at least, off their hands. If you are taking out cover for a partner it should last until they reach pensionable age. "Protecting the financial security of one’s family is the most important factor when considering any form of financial services," says Kevin Carr of Lifesearch.

    Your next policy

    As the prices have tumbled in recent years, the survey reveals that as many as 16 million people who already have life cover could be overpaying. Policyholders could boost their level of cover at no extra cost by switching to more competitive providers. Many of us already have life cover but tend to forget all about it as soon as we set it up. By reviewing your cover regularly - at least every five years - you can take advantage of any better deals and to adjust your cover as your circumstances change, if you need to. Switching life insurer is easy - there are no penalties and for sums below £200,000 there usually is no need for a medical. There are no guarantees that switching will always save money. For one thing you will be older and rates might be higher based on your age. And if your health becomes poor, it may be harder to switch. But it cannot hurt to shop around. You may want more life insurance as you have children or a partner.

    Monthly savings

    How much do you pay for your cover? The following best-buy data from Moneyfacts should give you a feel for whether it is over the odds. But don't forget that buying the cheapest or most expensive product does not guarantee the best cover so it is important to find the policy which fits your circumstances best.

    Male, age 35, non-smoker:

    Virgin £9.09
    Sainsbury's Bank £9.10
    Tesco PF £9.10
    Lutine Assurance £9.48
    Freinds Provident £9.49

    Male, age 35, smoker:

    Tesco PF £15.40
    Sainsbury's Bank £15.50
    Virgin Money £15.69
    Legal & General £15.90
    Bright Grey £16.15

    Female, age 35, non-smoker:

    Virgin £7.38
    Lutine Assurance £7.39
    Tesco PF £7.50
    Sainsbury's Bank £7.80
    Friends Provident £8.07

    Female, age 35, smoker

    Sainsbury's Bank £12.40
    Virgin Money £12.69
    Tesco PF £12.90
    Bright Grey £12.95
    Freinds Provident £12.98

    The figures are for monthly premiums for a sum assured of £100,000 over 20 years, courtesy of Moneyfacts, April 2004.

    Up in smoke

    The monthly premium costs shown above make it clear that smokers usually pay more for their policies. If you've not smoked for a year you count as a non-smoker and will save money. In addition to substantial life insurance savings and the minor detail of smoking killing 120,000 people in the UK every year, kicking the habit will also save you an estimated £1,752 in cigarette costs. 'Smokers should not only assess the damage to their health but also to their wallets too. What better incentive to give up than being able to saving £1000’s a year and also reduce premiums on financial products like life insurance and critical illness cover,' says Jane Everson of More Th>n.

    Retail therapy

    Life insurance is just one of the many financial services products now available from supermarkets. But if you are tempted by the convenience of picking up the leaflet with your baked beans, the one thing you wont be getting is independence. Asda's products are provided by Scottish Widows, Sainsbury's by Legal & General and Tesco's by Norwich Union. This means that while many clients will get a good deal, the off-the-shelf route may not be suitable for everyone.

    "The overall price of life insurance has fallen considerably over recent years but many people are unaware of this," says Tim Pile of Sainsbury's Bank. "Our research shows that 61% of those already with life cover took out their policy over five years ago, which indicates that they could make significant savings by switching providers. We found that only 6% of those with life insurance would consider switching provider. Six out of ten people who already have cover think that there is nothing wrong with the policy they have and nearly one in five think it would cost them more in premiums to switch," he adds.
     
  3. ViroBono

    ViroBono LE Moderator

    Having recently observed the mobilisation process at Chilwell, I note that personnel about to deploy are given a fairly hard sell for a life policy and a kit policy offered by some broker, whose representative is on hand to take everyone through the process of buying a policy.

    I wonder why:

    1. No competitive policy is offered, nor is there a comparison with other policies, so an informed decision cannot be taken
    2. Military staff take part in the sales process - how does the Army benefit?
    3. Why is this left until the last minute?
    4. Is this an officially endorsed policy?

    I found the whole thing highly questionable.
     
  4. Having read the above postings it is obvious that, put bluntly, the forum at Chilwell would have been a waste of time. Why? Because whichever broker it was offering life insurance would not give immediate cover for those about to be deployed. How do we know this? Because NAAFI Financial is the ONLY company to offer IMMEDIATE cover for military personnel, regardless of whether they are on standby, about to be deployed or even actually deployed, (even the MoD sponsored PAX scheme has a 6 months qualifying period before cover is in place).

    This policy covers the insured in cases of nuclear, (except for conflicts between the five main powers), biological/ chemical and terrorist attack, with immediate effect. Indeed, it has been the case in Iraq that we have paid out for claims before we have even taken the first premium. No other company will do this. We do this in our exclusive PA policy that will give you cover including life for up to £150,000 from just £2.36 a month.

    In addition our NAAFI Financial life brokerage will provide cover at similar prices to those listed above but will ensure that the policy does not contain any exclusions not appropriate to the military, i.e. war zone exclusion

    If you would like to find out more please call us, free on 00800 0001 02 03.
     
  5. Unit Orderly Room - pick up PAX forms.

    Also sign up for extension on your Army pay out (forgot what it is called)

    Those two combined will cost less and give you more.
     
  6. chimera

    chimera LE Moderator

    I am not sure if this statement is true. The PAX application proforma states: (Direct Quote) 'cover commences from the date of signature at Part D of this enrolment certificate by an authorised person...'

    I would hope that NAAFI will come back and prove me wrong. If not then your posts above are pretty disengenuous.
     
  7. We can confirm that the statement made previously is true.

    PAX Life Insurance has a ’War and Hostility exclusion’, and requires a six-month qualifying period before cover is active. During this qualifying period should the applicant go on an operational tour they would not be covered; therefore if you are due to be deployed or have been deployed PAX will not cover you.

    Taken from the RN/RM Reference Website:
    ‘New policyholders (less those in Part One Training) will be excluded from cover from war risks for 6 months from unit signature. The exclusion will also apply to additional units of cover (but not current units) purchased by existing policyholders after 01 Jul 03.’

    You are welcome to contact PAX yourself to see if you can get cover… and then get a quote from NAAFI Financial.


    To find out more, http://www.naafi-financial.com/exposed]visit our website [/url]or telephone us on 00800 0001 02 03 free from the UK and Germany (+44 1722 342 245 from the rest of the world).
     
  8. so, if I were to be told today, that i am going to Iraq in August, what kind of cover would NAAFI be able to give me?
     
  9. If you were going to Iraq in August, you could give our team a ring and we would arrange Personal Accident cover for you with Super Cover and optional Life Cover.

    This would then cover you from the moment you sign the form for accident, injury or death from any cause including terrorism, death from biological and chemical agents and Nuclear War. The only exclusion on our cover is for war declared between the major powers - therefore Iraq is covered.

    You can choose how much cover you require from £10,000 to £150,000 and premiums for our Personal Accident Policy start at just 27p a week.

    To find out more, visit our website or telephone us on 00800 0001 02 03 free from the UK and Germany (+44 1722 342 245 from the rest of the world).