Insurance is the one thing you pay for every month and hope you never use. I've never made a claim on any of mine. I still wouldn't be without it.
The trouble is, most people either don't have the cover they think they have, or assume the forces has them covered when it doesn't. Service life adds a few traps civvies never have to think about: deployments, kit, living in someone else's accommodation, and policies that quietly stop paying out in a war zone.
Here's what I've got, what the service does and doesn't cover, and the gaps worth checking.
What I've Got
- Life, health and serious illness cover, all with one insurer.
- The MOD-backed personal accident cover, at the top supplement level. Most people still call it PAX; since 2023 it's been called PAL Protect (more on that below).
- Home and contents insurance.
- Phone and travel insurance, which come included with my bank account.
- Comprehensive car insurance.
- Pet insurance for the cat.
That might look like a lot, but each one covers something I couldn't comfortably pay for out of savings if it went wrong. That's the test I use: if I could cover the cost myself without it hurting, I don't need to insure it. If I couldn't, I do.
And every single one gets shopped around at renewal. More on that at the end.
What the Service Already Covers (and What It Doesn't)
The Armed Forces Compensation Scheme (AFCS) pays compensation for injury, illness or death caused by service. It's no-fault, and it covers training and exercise as well as operations. It doesn't cover the injury you pick up playing football on a weekend, skiing on leave, or falling off a ladder at home.
Death-in-service benefits under the Armed Forces Pension Scheme pay a tax-free lump sum, currently based on four times your pensionable pay, plus a pension for an eligible partner and children. That's a decent safety net. Check it on your annual Benefit Information Statement, and while you're there, check whether you've nominated who should get it. Mine said I hadn't. If you've got a partner you're not married to, or you want it to go to someone specific, fill in the nomination form (Form 2 on GOV.UK). It takes ten minutes.
Your kit and belongings are mostly on you. The MOD can compensate for personal items lost or damaged because of your service duties, but only where you couldn't have insured them. Theft, fire and loss in transit are things you're expected to insure yourself, even when they happen in the block or during a move.
Life Insurance
If nobody depends on your income and you don't have a mortgage, death-in-service may be enough on its own. Once there's a partner, kids or a house in the picture, it's worth working out whether it would really cover everything, especially after you leave and it stops.
The forces-specific catch: many standard life policies don't pay out if you die as a result of war or terrorism, and some don't cover you while deployed. Always tell the insurer what you do, and read the exclusions before you buy, not after you get your deployment orders. Getting your job wrong on the application can mean the policy doesn't pay out at all.
Personal Accident Cover: PAX, Now PAL Protect
For years, the MOD-backed personal accident scheme was known as PAX. On 1 June 2023 it was replaced by PAL Protect, underwritten by the same insurer, and existing PAX policies carried across. If you've had "PAX" for years like me, it's PAL Protect now.
It pays out for injuries on or off duty, 24/7, and it has no exclusions for war or terrorism, because the government backs the scheme for those risks. That's the gap most civilian accident policies leave. You can pay for it straight from your salary, choose a higher level of cover, and add optional life and critical illness cover.
It's worth a look if you do anything active off duty, which in the forces is most of us.
Health, Critical Illness and Income Protection
While you're serving, your healthcare is provided. The question is what happens if you're seriously ill or injured and end up medically discharged. You may be entitled to an ill-health pension and, if service caused it, AFCS. Neither is guaranteed to replace your pay.
Critical illness cover pays a lump sum if you're diagnosed with a serious illness listed in the policy. Income protection pays a regular income if you can't work. Both are worth thinking about once people depend on you, and like life cover, check how they treat military service before you sign.
Your Kit and Contents
Whether you're in the block, a married quarter or your own place, check your contents policy actually covers:
- Belongings kept in service accommodation, not just at a home address.
- Items away from home, on exercise, on board or in transit during a move.
- High-value items like phones, laptops, watches and personal kit you've bought yourself. Many policies have a single-item limit.
- Accidental damage to service accommodation. You can be charged for damage to the property itself, and some policies cover this.
Make sure the total you've insured for is realistic too. If you under-insure, the insurer can reduce what it pays out.
Your House While You're Away
This one catches people out. Most home insurance has an "unoccupied" clause: if the house is left empty for more than a set period, often 30 or 60 days, your cover can be cut back to the basics or stop altogether.
If you're deploying or on a long draft and the house will be empty, tell your insurer before you go. Arrange for someone to check on it regularly, and get anything they ask for in writing. The Pre-Deployment Finance Checklist in the Armoury covers this and the rest of your admin before you go.
If you've got a mortgage, your lender will insist on buildings insurance anyway. From Grott to Gaff covers getting on the ladder in the first place.
Your Car on Deployment
By law, a car must be insured unless you declare it off the road with a SORN. Some people SORN the car while they're away to save money.
I don't. I keep mine fully insured while I'm deployed. Even off the road, a car can be stolen, vandalised or damaged in a storm or flood, and keeping it insured means family can use it, or take it for a short drive now and then to keep the battery and tyres healthy. If you do the same, make sure anyone driving it is named on the policy.
A couple of other car points:
- Tell your insurer where the car is actually kept overnight. If that's on base rather than your home address, say so.
- Tell them when you're posted. A new postcode can change your price, either way.
Phone, Travel and Pets
Some bank accounts come with phone and travel insurance included, and that's how mine works. If yours does, check the limits, the excess and what's excluded before you rely on it. Those policies cover your own trips; when you travel with the service, the service looks after you.
Pet insurance is worth it for the same reason as everything else: one emergency trip to the vet can run into thousands.
Shop Around at Renewal
Since January 2022, insurers can't charge you more to renew home or car insurance than they'd charge a new customer for the same cover. That ended the worst of the "loyalty penalty", but it doesn't stop a different insurer from being cheaper.
So every year, when the renewal letter arrives, I check comparison sites and go direct to a few insurers that aren't on them. It's the same approach as Shop Around for Your Savings and Borrowing Without the Bite: don't just accept what you're given.
When you compare, compare like for like: the same cover limits, the same excess and the same extras. The cheapest quote is often cheap because it covers less.
And if you're auditing your direct debits once a year, as Common Sense Isn't That Common suggests, check you're not paying twice for the same thing. Phone cover on a bank account and a separate gadget policy is a common one.
The Bottom Line
Insure the things you couldn't afford to replace or recover from, check the exclusions that matter for forces life, and shop around every renewal.
And today, if you do nothing else: check your death-benefit nomination on your Benefit Information Statement, and if the house will be empty while you're away, tell your insurer.
This is based on personal experience and is for information only. It is not financial advice. Insurance policies vary, so always read the policy documents and check the cover meets your needs.
Sources
Armed Forces Compensation Scheme (AFCS) — GOV.UK
Compensation for lost and damaged personal effects — Discover My Benefits
Armed Forces Personal Accident Insurance Scheme — Hansard, 28 June 2023
Veterans UK Armed Forces Pensions forms — GOV.UK
FCA confirms measures to protect customers from the loyalty penalty — FCA