WIREDGOV

New 'Service Life Insurance scheme' for the Armed Forces

MINISTRY OF DEFENCE News Release (091/2007) issued by The Government News Network on 8 May 2007

Today the Armed Forces Minister, Adam Ingram, announced that the MOD, in association with Sterling Life, has launched an innovative new life insurance scheme exclusively for the Armed Forces. The Scheme, Service Life Insurance (SLI), complements the existing death-in-service arrangements already available to the Armed Forces.

In the run-up to Operation TELIC in 2003, many life insurance companies closed their schemes to new applicants, increased premiums or excluded benefits for chemical, biological, radiological or nuclear weapons.
Service personnel can still find it difficult to obtain affordable and guaranteed life insurance that covers war and terrorism risks. To address this the MOD, in association with Sterling Life, have developed a guaranteed life assurance scheme tailored to the specific needs of Service Personnel.

SLI compares well to other typical products in the market place and some of the key features are:
* War and terrorism cover, including Chemical, Biological, Radiological or Nuclear warfare when on UK military duties.
* Guaranteed acceptance, even when on operations or under orders to deploy.
* Sterling Life will not apply extra premiums to 'high risk' military trades, including Special Forces and bomb disposal.
* Members will be accepted without any medical underwriting, and premiums are extremely competitive.
* Cover is guaranteed for up to 25 years. Premium rates are also guaranteed not to increase for the life of the policy.
* Cover is included whilst participating in hazardous sports recognised by the Armed Forces including parachuting, diving and skiing.
* The application form is simple to complete.
* Non-smoker discounts.
* Terminal illness cover is available at extra cost.

Adam Ingram said:
"The Service Life Insurance Scheme is designed to complement and reinforce our existing schemes. It gives our personnel the option to take out life insurance cover that is tailor made to reflect the unique nature of what they do. Cover is available to each and every serviceman or woman across every unit, ship and regiment at every stage of their career. Whatever their job, wherever they are."

John Blundell, the Managing Director of Sterling Life said:
"We are delighted to have been selected by the MOD as the sole provider of Service Life Insurance. We feel that our commitment to providing a carefully tailored product matches the MOD's dedication to providing its Service personnel with a quality solution to their financial needs."

The MOD selected Sterling Life through a competitive tendering process. The scheme is only available from Sterling Life. Service personnel who want to find out more about the scheme or who want to apply for life insurance should, in the first instance, contact Sterling Life on 020 8334 1557. Details are also available online at http://www.servicelifeinsurance.co.uk or by writing to Sterling Life Ltd, Ambassador House, Paradise Road, Richmond, Surrey TW9 1SQ. Brochures will be available soon at units with details of the scheme and how to apply.

Notes to editors:

1. The MOD's on-line news service, UK Defence Today, may be found at http://news.mod.uk.

2. The Armed Forces Pension Scheme 2005 pays out a lump sum of up to four times final pensionable pay to its members who die in service, irrespective of its cause. A pension can also be paid to the widow/widower and their children.

3. The widow/widower of Service personnel who die as a result of their service are also eligible for a War Widows Pension.

4. The Armed Forces Pension Scheme is non-contributory.

5. The key features of SLI are outlined below
A. Product type: Level Term Life Insurance
B. Eligibility: Regular and Reserve personnel
C. Minimum/Maximum Term (years): 3/25 (to a maximum age of 65)
D. Maximum Benefits: £200,000
E. Minimum Premium: £5 per month (direct debit only)
F. Premium Type: Non-reviewable
G. Non Smoker Discount: Yes
H. Terminal Illness Cover: Yes
I. Underwriting: NIL loading for service, employment (including bomb disposal special forces and aircrew), trade or location (including operations in Iraq and Afghanistan)
J. War and Terrorism cover (including Chemical, Biological, Radiological and Nuclear (CBRN)) is included for all MOD duties. All military trades are included. As is the industry norm, suicide in the first 12 months is excluded. Pre-existing medical conditions are only excluded in the first 24 months. SLI Benefits will not be paid for any terminal illness diagnosed less than 12 months before the policy end date.
K. Service-recognised sports are included
L. No medical required
M. Quick and simple application
N. Premiums comparable to those available to civilians

6. Sterling Insurance Group Limited was founded in 1994 and focuses on high net worth property, small to medium enterprise commercial lines, life, personal accident and creditor insurance. The company was founded by Nicholas Cooper, the former Chief Executive Officer of Consolidated Insurance Group Limited. In June last year, Sterling Insurance Company and Sterling Life's IFS (Insurer Financial Strength) ratings were both upgraded to A minus by Fitch, the global rating agency. Sterling Life has its Headquarters in Richmond-upon-Thames with offices in West Malling, Kent and Romford, Essex. SLI will be principally administered from Kent.