Is arranging life insurance possible whilst on active army duties?
We were recently approached by a Mr G who is a member of the Army on active duty. He was looking to protect his mortgage with life and critical illness cover and had recently been declined by an insurer because his unit was under active orders at the time.
Mr G works in the Logistics corp and his duties lie mainly within transportation, spending approximately 90% of his time travelling in transport lorries. He is not part of any specialist division of the Army, eg SAS or the Special Boat Service (SBS).
His unit is currently protecting the Brexit situation, as the Government expect that there may be shortages of merchandise which will need to be transported.
Our advice process
Once we had a good understanding of Mr G’s employment, his requirements and medical history we began our research process.
Would insurers add a ‘loading’ to their quoted premiums (this is an additional amount on top of the standard monthly premium to reflect their additional risk)?
Could they exclude certain conditions?
Might they decline his application altogether? We want to avoid wasting time by making applications which may be declined.
Every insurance provider has their own underwriting criteria and we contacted them all to find the best outcome for our client.
Unsurprising, we found that the majority of insurers would either decline life cover or, add a ‘loading’ to the quoted premium due to the perceived risk of his job. Some insurers also told us that they would not only add a loading but would also exclude any injury/illness/death pertaining to military activity.
Only a few insurers would offer Critical illness cover, and if they did, this would be on the proviso that there would be an exclusion for any illness related to serving the armed forces. So, if he were diagnosed with or suffered a critical illness whilst he was on active duty, no matter where he was in the world, they would not pay the claim.
Two insurers returned the decision that they would not add a loading to the policy. In addition, their exclusion would only apply if he experienced something claim worthy whilst in countries with active combat areas or those needing humanitarian aid.
This means if something were to happen to Mr G whilst he was carrying out army duties in the UK, which subsequently caused a critical illness claim, the policy would payout.
Our client was relieved to be able to protect his mortgage in the event of his passing.
Client ID: 146259344
Please note that any premiums mentioned are indicative only and based on this specific case study/ example, which is shown for information purposes only. Your own circumstances will determine whether the amount payable is more or less than the figure quoted.
Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.
Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget!
An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.
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Interested in related stories?
Take a look at our handy guides ‘What Cover is Right for me?’
Do you suffer from a medical condition and concerned you can’t secure Life Insurance? Please view our ‘Medical Guides’ for further information.
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