LifeSearch comments on new MOD life cover plan

In association with Sterling Life the Ministry of Defence has launched a new life insurance scheme exclusively for the armed forces.

In recent years, depending on the individual circumstances, many life insurance companies either refused cover for new applicants, increased premiums or excluded benefits for members of the armed forces. Some even declined cover for UK based employees.

Cover for the new policy is limited to a maximum of £200,000, which could provide a problem on mortgage related business given current house prices. However, in addition to the risk of underwriting those in the armed forces there is also no medical underwriting, which is understandably likely to make premiums seem more expensive than typical life insurance quotes.

LifeSearch Head of Protection Strategy, Kevin Carr, said ‘The plan should serve its target audience well. There certainly is a market for this kind of product, especially for those who are already under orders, as many of the mainstream insurers can be restrictive when it comes to insuring those in the forces, especially during times of conflict.’