rpax / insurance, afew questions

Discussion in 'Finance, Property, Law' started by DAKOTA_STAB, Aug 29, 2009.

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  2. BiscuitsAB

    BiscuitsAB LE Moderator

    who is your existing providor for your mortgage cover? probably best to leve that well alone, but if you give me the company name I will check out their underwritting position.

    If you have a mrs and or kids then you would be wise to check out Sterling lifes site, they have a policy that is MOD approved the max cover is only £200K for death but its better than nothing.

    Ref R/pax versus Pax get yourself a full schedule of cover and terms and conditions for both and go through it with a fine tooth comb. Alternatly get the info and post it up here or send it to me and I'll check it out.


    I'm happy to help in this area as I believe that with the right policies guys going out on ops can have at least a decent level of appropriate cover.
  3. Couple of other things
    1. If you have a company pension provider make sure thay know where you are going. Most Government schemes will pay up under 'death in service' if the worst happens.
    2. Check re any life insurance providers you have, including mortgage ones that underwrite your policy, then decide if you need to take out RPAX
  4. Dont get RPAX confused with life insurance.

    PAX is primarily an insurance against injury, something the vast majority of civvies have no cover for.

    On that basis you should take the full whack in case you lose a leg, an eye, a finger or you end up disabled.

    IF your existing life ( and critical illness if it applies ) insurers cover you while away then great, if not then you do have the option of SLI as previously mentioned which could give you cover up to £200,000.

    Whatever you do, never think of replacing life insurance ( which has certain guarantees ) with PAX as it is deemed a temporary insurance ( policy can be changed ).

    If you are likely to deploy again at some stage in the future you should sit down with an adviser who is able to access the whole of the market ( there are large insurers happy to cover the forces ) and ensure you have suitable cover. You would not normally pay any more than a civvy policy unless you were ATO, SF, diver or flight crew.
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  6. BiscuitsAB

    BiscuitsAB LE Moderator

    sorry mate I'm going to have to disagree with you on that last bit, current situation is most life offices are not covering and those that are will say if your are/were under orders or warned to deploy they will not cover you.

    had a big conversation with Scot Provs and pru protects underwritters on thursday. If however you know of a Life Office that will provide the appropriate risk cover please share it on here.
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  8. Biscuits..

    I should have added... If you are likely to deploy again you should sit down with an adviser WHEN YOU GET BACK
  9. Given your trade then there is no simple option I'm afraid.

    The army does provide relief for the additional cost of insurance for certain trades up to a limit of just over £150k, but not sure if it extends to TA service.

    A lump of cover via SLI for a term likely to cover your TA career may be the best bet.

    The only point I was making is that having heard some briefs around SLI it has been said its the only forces cover, the cheapest forces cover etc and it isn't so. Its great for lastminute.com emergencies prior to ops and its also good if you are in a rated trade ( about 3% of the army ). For everyone else its more expensive than normal cover, no ability to cover spouses/joint policies, no indexation, no Critical Illness Cover (if required).

    Moral of the story is to look at all your options - ideally more than six months before any deployments.
  10. I think that this is misleading.

    If someone takes the optional Life cover then PAX, or indeed RPAX, provides Life insurance and is accepted as such by mortgage companies.

    It is not term life insurance, which covers a set amount for a set period of time at a set price, like SLI or Scottish Provident, but allows you to change your cover as and when your circumstances change without any admin charges. It is hardly temporary as I had it for 16 years and many here have had it for even longer - one cannot walk away from a contract with the MoD so easily!

    However, back to the OP's questions:

    Sorry if Andy was a bit rushed - the problem with being last on is that sometimes we have less time there then we would like - especially with people often being called away for evening meal.

    RPAX provides the same level of benefits as PAX but is paid by Direct Debit rather than from JPA due to the fact that many of the volunteer reserves do not receive regular monthly payments when not deployed. The price for a unit of personal accident cover is less and this is because in an MoD contracted scheme profits (when there are any) are limited so the price is driven by the volume/size of claims. Both options are given at RTMC as many prefer to pay more and go with immediate cover/payroll deduct, whilst RPAX starts once the forms reach Croydon (so normally a couple of days later).

    Just as with PAX, there is no differentiation between trades, age, gender etc.

    The act of war exclusion refers to a war between UK, France, USA and the Russian Federation and this is because we cannot guarantee that the insurance company, or indeed the UK's Financial Services Compensation Scheme, would have any money to pay a claim in the event of war between the US and Russia - it has to be an act of war so accidental injuries sustained as a result of blue-on-blue incidents are covered.

    PAX also do the usual raft of other policies but, given that we don't sponsor the site, I wont go through them all here.

    As BiscuitsAB says, the number of insurers willing to pick you up for pure life cover now that you are under orders is very limited, which is why Lewis' company, ABACUS, normally advise people to take SLI or PAX in addition to their own PA cover at that stage.

    Kind regards,