What is a good insurance payout rate?
An innovative new insurance claims payout tool has been launched to help customers make an informed and assured decision when choosing life, critical illness or income protection cover.
“Negative stories in the press relating to insurance claims payout rates no doubt have an influence on whether someone decides to buy this vital cover” explains Tom Conner from protection specialists Drewberry Insurance “with the end result that many people forgo it, leaving them and their loved ones financially exposed in the event that the unexpected does happen.”
This nifty new tool allows users to view and compare insurance claims payout rates by product or by specific insurer for income protection, life insurance and critical illness insurance. The data has been compiled using information from some of the UK’s well-known including Aviva, Liverpool Victoria, Legal & General, British Friendly and Zurich Insurance.
It also allows users to compare insurance payout rates on a year-on-year basis too.
This free-to-use tool was designed following research* that showed that Brits perceive insurance payout rates to be as low as 50% from life insurers – despite the actual payout rate in 2011 being 98%.
Mr. Conner continues: “Using our insurance claims payout tool will hopefully reassure customers that all valid insurance claims are paid and that incidences of rejected claims are, indeed, rare.
“Not only that, but for people choosing cover, it can be another deciding factor as to whom to buy their cover from, alongside price, and policy features and benefits.”
Mr. Conner added that, when applying for any insurance cover, it is essential to answer every question as truthfully as possible: “In the unlikely case that a claim is rejected, it is because the claim is invalid. This could be due to something listed within the exclusions, but, more likely down to what is called non-disclosure”.
Non-disclosure is when you have failed to disclose something on your insurance application that could affect your cover. For example, if you applied for a critical illness insurance plan and did not mention that you had previously had a coronary artery bypass, typically, your policy will be invalid. Should you become critically ill, the insurer would have every right to simply refund any premiums and not pay your claim.
“If you are in any doubt whatsoever about what to declare,” advises Mr. Conner “then write it on the application form anyway. Or, alternatively, seek the help of an insurance specialist who can help you choose the most suitable cover as well as advise on the application-filling process.”
*Health & Protection Insurance Survey 2013
This was posted in Bdaily's Members' News section by Jason Hulott .
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