Service Life Insurance Explained

There are two things here, and most people only know about one of them.

You already have death-in-service cover through the Armed Forces Pension Scheme, automatically, without applying. It pays a tax-free lump sum worth three times your representative rate of pay, plus a short-term pension for a spouse or civil partner for up to 182 days and a long-term pension after that.

On top of that, PAX — called PAL in the RAF — is the MoD-facilitated personal accident and life insurance scheme, paid for by low premiums through payroll. It can be extended to cover death by natural causes and certain critical illnesses.

Both are entirely separate from the Armed Forces Compensation Scheme. Claiming on one doesn't reduce the others.

The thing to actually do before you leave is check what continues and what lapses on your discharge date, and arrange civilian cover for any gap.

Who is eligible?

Every serving member has AFPS death-in-service cover automatically. There's nothing to apply for.

PAX is taken out during service through your unit's admin staff, and your service's Discover My Benefits pages set out the scheme and current premiums.

The part that needs your attention is the nomination. Whoever you name on the Veterans UK pension and insurance declaration form receives your death-benefit lump sum, and without a nomination it's paid under the scheme rules rather than to the person you'd have chosen.

Review it after a marriage, a civil partnership, a divorce or a new child. An out-of-date nomination is the most common reason this money goes to the wrong person.

What benefits does this provide?

  • Death-in-service lump sum: If you die in service, the Armed Forces Pension Scheme pays a tax-free lump sum worth three times your representative rate of pay.
  • Short-term family pension: Your spouse or civil partner receives a short-term pension for up to 182 days immediately after your death.
  • Long-term family pension: A long-term survivor's pension follows once the short-term pension ends.
  • PAX personal accident and life cover: PAX — known as PAL in the RAF — is the MoD-facilitated personal accident and life insurance scheme, paid for by low premiums through payroll.
  • Optional extensions: PAX cover can be extended to death by natural causes and to certain critical illnesses for an additional premium.
  • Separate from compensation: PAX and your pension scheme's death benefits are entirely separate from the Armed Forces Compensation Scheme — claiming one does not reduce the other.

How do I apply?

  • Check what you already have: Every member of the armed forces is automatically enrolled in the Armed Forces Pension Scheme, so death-in-service cover is already in place. You do not apply for it.
  • Nominate who receives your lump sum: Use the Veterans UK armed forces pension and insurance declaration forms to nominate a person or an organisation for your death benefit, or to revoke an earlier nomination. Without a nomination the lump sum is paid under the scheme rules rather than to your chosen beneficiary.
  • Arrange or vary PAX cover while serving: PAX is taken out during service through your unit's admin staff. Your service's Discover My Benefits pages set out the scheme and current premiums.
  • Review your cover before discharge: PAX is tied to service. Check what continues and what lapses on your discharge date, and arrange civilian cover for any gap before you leave.
  • Keep nominations current: Review them after marriage, civil partnership, divorce or a new child — an out-of-date nomination is the most common reason a payment goes to the wrong person.
  • Get free, independent advice: The Forces Pension Society and service charities offer guidance at no cost. There is no need to pay a representative.

Common questions

Is there life insurance if you die in service?

Yes, and you are already covered. The Armed Forces Pension Scheme pays a tax-free lump sum worth three times your representative rate of pay, plus a short-term pension for up to 182 days and then a long-term pension for a spouse or civil partner.

What is PAX insurance?

PAX, known as PAL in the RAF, is the MoD-facilitated personal accident and life insurance scheme, paid for by low premiums through payroll. It can be extended to death by natural causes and certain critical illnesses.

Who gets your death-in-service lump sum?

Whoever you nominate on the Veterans UK pension and insurance declaration form. Without a nomination it is paid under the scheme rules rather than to the person you intended, so review it after a marriage, divorce or new child.

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Last reviewed 26 August 2026 by Brittany Belt, Co-founder and COO