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.