Why Military Personnel Need Income Protection
While serving military personnel have certain financial protections (Armed Forces Compensation Scheme, military pension), these have significant gaps. Income protection provides additional security, particularly for:
- Injuries not covered by the Armed Forces Compensation Scheme
- Mental health conditions (PTSD, depression, anxiety) that prevent you working
- Medical discharge where your pension may be lower than your serving salary
- Transitioning to civilian life where military benefits no longer apply
Key consideration: Income protection for military personnel may have exclusions for injuries sustained during active combat or deployment. However, it covers illnesses and non-combat injuries, which account for the majority of medical discharges.
AFCS vs Income Protection
| Feature | AFCS | Income Protection |
|---|---|---|
| Covers | Service-attributable injury/illness | Any illness or injury |
| Payout | Lump sum + possible GIP | Monthly income |
| Non-service conditions | Not covered | Fully covered |
| After leaving service | Must claim within time limits | Continues as long as policy active |
After Leaving the Forces
When you leave military service, you lose access to military medical care and financial support. Income protection becomes even more important during the transition to civilian employment, when you may face:
- Loss of military sick pay
- Loss of military housing
- Transition period with lower or uncertain income
- Mental health challenges during adjustment
Frequently Asked Questions
Yes. Available from most providers, some may apply a loading.
A 30-year-old earning £35k: around £25–45/month for 60% income replacement.