David asked: An ever increasing number of military servicemen and officers are taking up
army kit insurance cover. Before the advent of such
army kit insurance cover, military life for many soldiers was fraught with unspoken anxiety, as one had to live with the knowledge of the fact that they were fully responsible for their army kit, and would have to pay for it were it to get lost or damaged in one way or another. This was an anxiety-inducing thought, as the cost of army kit can be rather high, often running into thousands of pounds (think several months’ pay) for the whole kit.
Then came
army kit insurance. By taking up such
army kit insurance, a soldier can live with the peace of mind of knowing that they are covered (at least financially speaking) in the event of their losing their army kit in one way or another.
Army kit insurance is one of the specialized military insurance products, alongside military life insurance and personal accident insurance cover (also referred to as
pa insurance) which were greeted with the most enthusiasm by both servicemen and officers in all branches of the military. The enthusiasm with which military insurance products like military life insurance like
army kit insurance and
pa insurance covers were met with led to the growth of specialized military insurance providers like
Abacus, which was among the pioneers. Today, as more and more companies offering military insurance products spring up, many soldiers are finding themselves spoilt for choice on which provider to opt for, and what criteria to use in sorting through the various products on offer, as they all look so similar. Here then are three important factors to consider, when you are shopping for
army kit insurance.
1. The cost structure of the cover: Taking any form of insurance cover is seen as a serious financial commitment, and military insurance is no exception. You need to carefully consider the cost of the
army kit insurance cover you are taking, and see how that fits into your overall budget. You also need to ensure that the premiums you pay for your
army kit insurance cover compare favorably with the benefits you stand to get in the event of your losing or having your army kit damaged. Of course, don’t approach your
army kit insurance cover shopping with cost as the only shopping criteria as such an approach often blinds you to other important factors. Simply put, the cheapest is not always the best, though cost is still an important consideration. In looking at the cost, you will also need to consider other elements that are not explicitly mentioned, like annual fees for example. Some
army kit insurance providers charge such fees (in addition to the normal premiums) whereas others don’t charge such fees. You need to look at such fees as implicit costs, as they still have to be paid for ultimately.
2. The benefit-structure of the cover: Alongside the cost structure of the
army kit insurance product you are considering taking up, you also need to consider its benefit-structure. This often involves combing through the fine print carefully, looking for catches. Some of the questions you might ask include whether the
army kit insurance cover only covers for lost army kit – or whether it also includes damaged military kit for example. You might also want to know whether the
army kit insurance comes with worldwide coverage – or whether the coverage is only local (keeping in mind the ever-present possibility of being called up overseas duty).
3. The product provider: You also need to carefully examine (and compare) military insurance providers providing
army kit insurance before committing yourself to one. Some of the things to look at in an
army kit insurance provider include their experience (you might, for example consider going for an experienced
army kit insurance provider like
Abacus, or opt for the relatively newer, less experienced providers), the track record of the
army kit insurance provider, and of course the financial stability of the insurance provider you are considering committing yourself to. You might also consider looking at what other products (besides
army kit insurance) they offer, and how these other products might appeal to you. As it were, it is often better to get all your military insurance products from one insurer, as they often given great ‘discounts’ for multiple purchases. A company like
Abacus for example, offers
army kit insurance at greatly reduced rates if it taken alongside personal accident insurance (
pa insurance) cover.
Marian
