Armed Forces Life Insurance
Life cover provides a tax-free lump sum benefit to your beneficiaries in the event of death apply now online or get free advice from one of our expert advisers.
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Armed Forces Life Insurance – When It Matters Most
As a member of Her Majesty’s Armed Forces personnel, you will be all too aware of the risks associated with your job.
Depending on your role, you may be deployed on active duty to an area of conflict in a different part of the world. On the flip side, you may have completed your active duty and spend the majority of your time working closer to home.
Whatever your role in the Armed Forces, life can be unpredictable, so if something were to happen to you at home or abroad, it’s important to have all your bases covered.
Making sure your loved ones are looked after in the event of your death is, without doubt, one of the most responsible things you can do for your family.
However, relying on the Survivors Guaranteed Income Payment (SGIP) from the Government may not be enough to see them through to adulthood. Especially if you have a young family.
Taking out personal life insurance cover will wrap a financial security blanket around your family if you are no longer there to provide for them.
What Is Life Insurance?
Life Insurance is a policy you take out to protect your family financially if you die.
Giving you ultimate peace of mind in return for a modest monthly premium, a life insurance provider will pay out a lump sum to your dependents in the event of your death.
You can choose the amount you’re insured for based on your personal and financial circumstances, such as your mortgage, your salary, and your family’s financial needs.
What Are The Main Types Of Insurance Available?
The most basic type of life insurance is called ‘Term’ insurance because it covers you for a period of time. There are three types to choose from. Level Term, Decreasing Term and Increasing Term.
If you choose Level Term Insurance you will be insured for a specific amount that will be paid out to your partner or children if you die within the specified term of the policy.
If you have a large mortgage, and would like it to be paid off on your death, then choosing Decreasing Term Insurance, will clear the balance.
If you’re taking out cover for a long period of time, say 25 years, Increasing Term Insurance means the amount your dependents receive will grow to match the cost of living.
There are other types of life insurance – click >here< for more.
Do I Need Life Insurance If I’m Covered For Active Duty?
The Armed Forces Survivors Guaranteed Income (SIGP) benefit pays out if you die in service or seven years after leaving the service.
The amount your surviving partner will receive is based on your salary and your age and pays out 60% of that amount each month for life. The payment is boosted by the Consumer Price Index (CPI) and is subject to income tax.
While that may seem generous, it may only be enough to cover the basics if your partner is unable to work while bringing up your children.
To work out how much you will need to plug the gap, calculate your annual salary times 10. Ten years of your salary is the very minimum life cover you should aim for.
For a small premium each month, your family can continue to lead a comfortable life until your children are no longer dependent on your finances.
How do Life Insurers view the Armed Forces Profession?
How your application is viewed will depend on the type of job you do and whether you take part in active service.
If you work as a chef in the Royal Navy, your job will have a different set of risks to that of an RAF pilot.
Because of the increased risk associated with your profession, it’s important to take out military life insurance rather than civilian life insurance cover, which could cost more.
What Is And Isn’t Included?
A military life insurance policy is designed to cover you if you die as a result of your work in the Armed Forces. However, it should also cover you if you die as a result of natural causes or personal accident.
How Does Life Insurance Cover Work?
You pay a monthly premium to an insurance provider for a policy that will pay out a lump sum or regular payments to your partner or dependents if you die within the period the policy runs for.
How Much Does Life Insurance Cost?
Life insurance premiums can be surprisingly affordable. In fact you can insure your life for around the same price as a TV subscription. The cost of your premium will be based on your personal circumstances and the number of months or years you need cover for.
What Are The Determining Factors?
In the main, a provider will base your policy on the amount of risk you pose, such as your specific role in the Armed Forces and where you are deployed.
They will also include your medical history, your age and lifestyle – and whether you are a smoker or non-smoker.
What Do You Need To Think About Beforehand?
This part of the process will help you understand why having the right amount of life cover is so important for your family’s ongoing financial security, if you’re not around to provide for them.
Write down how much you earn now and what you spend it on each month. Include all your direct debits, plus the amount you spend on groceries, fuel, gifts, and credit cards.
How many children do you have, and how many years will they be dependent on you? The answer may be up to the age of 18 or beyond, if they attend further education.
As you complete this exercise, add around £5,000 to cover the cost of your funeral.
Getting The Right Advice
Before you start searching for a life insurance provider and policy, get some advice so you can make an informed decision based on you and your family’s individual needs.
Always choose an insurance company that is authorised and regulated by the Financial Conduct Authority and has a registered office in England.
It’s also important to check that the financial adviser you choose has experience in financial services for members of the armed forces.
How Can A Life Insurance Quote Adviser Help You?
It’s really important when in the armed forces that your provider covers your actual job role. Our expert advisors are in a position to support you with advice and guidance on the best covers available for your specific occupation.’
Setting up an appointment with us is easy. Following an informal discussion about your job, your financial commitments and the needs of your family, we can help you calculate the right amount of life cover you should aim for after taking the SGI Payment into consideration.
We can save you time and money by locating the most appropriate providers and affordable products to protect your dependents should the worst happen.
Life Insurance Quote is authorised and regulated by the financial conduct authority and runs its operation from a registered address in the UK.