Troops who are risking their lives on a day to day basis are having their life insurance premiums shot up if they are posted abroad in an active war zone such as Iraq or Afghanistan. Soldiers also have to insure the equipment they use as they are responsible for replacing any damaged or destroyed military equipment.

Soldiers are given standard insurance but can receive a lot higher payouts if they go private. The Pax scheme is a policy run by insurance giants AIG and can pay as much as five times more than a standard government payout.

Some soldiers have seen their premiums treble recently if they are assigned to a tour abroad. For a 6 month tour for a single soldier, insurance used to cost around £280, the insurance companies have now enforced a 12 month minimum on all policies and soldiers with families can now expect to pay around £970.

AIG has released a statement outlining that they are in the minus with regards to the payouts for injuries and deaths to soldiers.

The Ministry of Defence (MoD) have been in talks with the insurance giant in an attempt to lower premiums, a representative has said "If the premiums were increased this would be the first such change since 2003."

This issue has also sparked a debate as to whether the government thinks too little of the man power of the army and instead, concentrates more on the military equipment.

Insurance companies are being hit all over the globe and increased premiums and lower payouts should be expected.

Compare life insurance quotes online to find a cheap life insurance policy for you. Your situation will depend on the type of life insurance you need.