Page 10 - JSCSC guide 2015

Managing personal nancial risk ... a day in the life ...
Key Points:
• It’s important to be aware of the nancial and personal risks faced at home and deployed
• Managing that risk is a responsibility for individuals and their families
• There are a range of insurers and covers available for the military
• Check out the terms they offer and how they operate to nd out what is best for your situation
Picture this ...you join the Armed Forces and Day 1 nd yourself issued with a bundle of kit; suddenly you are responsible for it all. You listen to a nancial brief
and realise you need kit insurance as a minimum. Then once training is completed you are issued with some seriously expensive kit on a temporary basis. Make sure the single item limit is high enough.
Now fully trained, a bit of money in the bank, you decide to buy a car. As we all know motor insurance is a legal requirement – always give full and correct details, there’s nothing worse than having a claim rejected, especially if you’re about to be deployed.
You realise insurance is going to be part of your life. Add the premiums to your monthly budget so that you are con dent you will be able to meet them. Don’t forget it might be cheaper to pay annually. Look carefully at the monthly payment terms and sign the forms to avoid extra fees.
First posting, due to be away for 6 months and during your pre-deployment checks
you are told you need to write a will. A bit scary, but important. It’s also a good idea
to consider personal accident cover in case of injury (risk from jumping down gangways / off vehicles, accidents in pre deployment physical training).
Home again on post deployment leave, you get married and move into Service Family Accommodation (SFA). Discover you need £20,000 legal liability insurance for
any damage that may occur to MoD living quarters. You are not classed as a tenant in SFA so standard home insurance policies
won’t cover the damage. Plus you need cover for your possessions and kit. Take a look at the providers of home contents cover, which may include kit and damage to SFA – saves buying two policies.
You are posted. Make sure you are ready for the move. Be careful to read the small print as some insurers do not cover your kit and contents whilst in transit (which includes MFO). If you are posted abroad then keep tabs on the no-claims bonus for your car while you’re away. Before you go, don’t forget to add your partner’s details so they can deal with the insurer and make a claim while you’re away.
At last, it’s time for a holiday and a chance to enjoy some energetic and risky sports! Don’t forget the travel insurance and keep an eye on the details. Be con dent before you set out that everything you plan to do is included and the country you are visiting is covered.
Every time you buy insurance, watch out for those excesses, the rst part of a claim which you will have to pay yourself. How much should it be? A good way to choose the level is to look at your bank account at month end. Whatever you have left over is about how much you can afford as an excess on any of your policies. If like many of us you have no money at the end of the month, then keep the excess low and budget for a higher premium.
Finally, look for an insurance provider
that understands your lifestyle. We all want someone we can trust to get us a good deal, not just the cheapest prices. Go online to check what’s on offer directly; remember that the comparison websites don’t include all insurers. For extra con dence, when you nd a good deal, give the insurer a call to sort out details and try out their service. Get to know your insurer – they’re there to help you!
Article prepared by The Military Mutual www.themilitarymutual.com
Tel: 0800 088 22 83