Many in the Armed Forces, and those who support them, have been experiencing difficulties when trying to arrange Life or Personal Accident insurance once under orders to deploy overseas.

Recent casualty figures from Afghanistan and Iraq have had two significant impacts on the Personal Accident and Life Insurance markets. Firstly, cover has become more difficult to arrange when under orders, and secondly the cost, particularly of Personal Accident cover, has risen dramatically. One way to avoid these difficulties is to regularly review personal insurance commitments and ensure protection policies, such as Life and Personal Accident, are in place before orders are received, when the options are wider and more cost effective.

Forces Financial considers that the appropriate level of financial security provided by protection insurance for the benefit of an individual or their family does not alter because of deployment. A devastating injury or death, by whatever cause, potentially has the same financial impact on the injured or the dependents left behind.

The number of casualties experienced by the Services in recent times understandably overshadow the fact that in 2007 more military personnel died from causes that affect the public as a whole – critical illnesses, road traffic accidents – than in action. Very few people would consider increasing Life or Personal Accident insurance cover because they were going on a car journey rather than taking a flight, despite knowing the risks of a fatal accident are significantly greater per mile travelled in a car. However many in the Forces arrange cover at deployment because their perception of the risk is higher, only to cancel their policies upon returning home, leaving them at risk.

Added to this, one of the unexpected consequences of the welcome improvements to the Armed Forces Compensation Scheme announced this summer; doubling the upfront lump sum payment for the most serious of injuries due to service; may be that the impact of limited insurance cover could now be more significant for dependents if a death or accident is non-serviced related.

The fact is that the requirements for protection cover remain constant, regardless of the risks faced. Therefore Forces Financial recommends personnel seek timely, independent advice to ensure individuals and their families are always protected at the appropriate level.