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    ABI News Release

    Saturday, 25 January 2003 Ref: 11/03

    Life insurance and the armed forces-ABI confirms the position

    LIFE INSURANCE COVER FOR THE ARMED FORCES-THE TIMES REPORT MISLEADING AND INACCURATE SAYS THE ABI.

    Existing life insurance policies held by members of the armed forces will be unaffected by any call up or deployment in the Gulf, the ABI (Association of British Insurers) confirmed today.

    “This morning’s report in The Times was misleading and inaccurate,” a spokesperson for the Association said.

    The position on life insurance and the armed forces has not changed, the Association confirmed.

    · Life insurance policies do not usually exclude war risks
    · Life cover for members of the armed forces can usually be purchased at standard premium rates. Certain activities, like bomb disposal, may attract an extra premium.
    · Existing life insurance policies will continue in force if the policyholder is on stand by, or deployed on active service.
    · Although many insurers will not accept new proposals from forces personnel at the time of being under orders to go to areas of high risk, this can depend on the precise circumstances.
    · Armed forces personnel are encouraged to recognise the long-term nature of life insurance at all times and not just at times of more active service.

    The ABI said: “The debate about levels of death-in-service benefit for the armed forces is not one for the insurance industry. Life insurance continues to provide an effective and long-term service.”

    o -ENDS -


    Note for Editors

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    1. The ABI is the trade association for Britain’s insurance industry. Its more than 400 member companies provide over 97% of the insurance business in the UK. We represent insurance companies to the Government, and to the regulatory and other agencies, and provide a wide range of services to our members. ABI member companies account for more than a fifth of investments in the London stock market.

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    Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk

    11/03

     



    Notes