Military income protection insurance
To serve in HM Armed Forces, you need to be fighting fit. But have you ever thought about what might happen if an accident or illness left you – or your military partner – unable to work?
Income protection insurance (or loss of income insurance) is one of the most important covers you can invest in. According to Which magazine, ‘The one protection policy every working adult in the UK should consider is the very one most of us don’t have – income protection.’
In the case of military personnel, income protection is especially important because you do a physical job – so the chances of you being able to continue working with a serious illness, or after a serious accident, are low.
Many insurance brokers offer income protection insurance – but these may not be suitable for the needs of those working for the army, navy or RAF. At Forces Advice, most of our staff are ex-military, so we can make sure you get a policy that fits your needs
What does military income protection insurance cover?
Income protection insurance (formerly known as permanent health insurance, and sometimes called income replacement insurance) is an insurance cover that pays out if you’re unable to work due to an injury or illness.
Imagine you were on holiday and got a nasty tropical disease that kept you off work for a long time. Or had an accident that left you in a wheelchair (these things are rare, but they do happen). How would you cover your expenses – bills, mortgage, leisure activities, children’s clothes and maybe education?
You would qualify for state benefits – but these probably wouldn’t come close to matching your salary. And being out of pocket can have a knock-on effect on your state of mind and family relationships – as if being unemployed and possibly bedridden wasn’t enough.
There are two different types of income protection insurance:
- Long-term income protection. This kind of policy pays out until a fixed age, death or your return to work. It’s underwritten when you apply for the policy, rather than when you put in a claim. This means you’ll know exactly what you’re covered for from the beginning, as well as anything you’re not insured for – e.g. a pre-existing medical condition.
- Short-term income protection. Like long term income protection, this type of policy is underwritten at the time of applying for the cover. The difference is that, instead of paying out until death or retirement, short term income protection (known as STIP) has a fixed maximum payout period – usually between one and five years.
Short-term income protection policies are generally cheaper, but have more limited benefits.
There are a number of providers of payment protection insurance, short-term income protection and other products designed to protect you against loss of income. For impartial information about insurance, please visit the website at www.moneyadviceservice.org.uk
Who does military income protection insurance protect?
Military income protection insurance is suitable for anyone working for the Royal Army, Royal Navy or RAF, or any of their specialist divisions – from new recruits to senior officers. The terms and price of your policy may vary depending on the nature of your job and the size of your salary. That’s why it’s always good to get advice from a specialist broker.
Often it’s the partners of military personnel who take care of things like insurance – and we’re always happy to talk to military partners about the concerns of the whole family.