PERSONNEL SUPPORT BRIEF - NFF

BRIEF 13
SERVICE LIFE INSURANCE (SLI)
Key Points:
• Clarify the intention and benefits of the SLI scheme post publication of
2010DIN01-59.
• Afford Naval Service Personnel (SP) the knowledge with which to make a
decision on whether or not to take out SLI.
• Furnish SP with information on how to join the SLI scheme.
• Encourage SP to regularly review their life insurance needs, especially when
circumstances change: for example, on getting married or having children.
• During periods of combat operations, life insurance companies often react to what they
perceive to be an increased risk to SP. In light of ‘The War on Terrorism’, Weapons of
Mass Destruction (WMD) and the frequency of military deployments, as the likelihood of
an insurer’s paying out increases; it will seek to transfer some of the risk it carries to the
SP potentially by one of the following methods:
• Increasing premium.
• Excluding or reducing benefits for CBRN incidents.
• Closing schemes to new applicants.
• These methods of risk transfer, although legitimate, commercial measures, make
it difficult for SP to obtain affordable life insurance. Even if military activity was to
decrease and insurers stopped using such methods, they could re-introduce them at any
time. Therefore, in order to provide SP with the option of guaranteed and affordable life
insurance, Sterling Life, in close cooperation with the MOD, offer SLI.
• It is for the individual to decide whether they require SLI, PAX, both or any other
insurance scheme, considering whether AFPS and AFCS benefits will suffice to provide
financial security for dependants. SP are encouraged to take independent financial
advice if uncertain.
• SLI is:
• Continuously available throughout an individual’s military career and beyond (to the
age of 65).
• Available to all SP aged 18 – 45 by self-certification of good health, regardless of
likelihood of operational deployment.
• Available to SP over 45 subject to medical underwriting but able to insure against
war and terrorism immediately.
• Not subject to any additional premium for high risk trades or personnel on
operations.
• Policy terms available range from 3 to 25 years, with premiums being collected by either
payroll deduction or direct debit.
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