More and more life insurance claims are being paid out

Thursday, March 11, 2010

It has been recently reported that the life insurance industry has been paying out on more and more claims. A recent example of this can be seen when looking at the Royal London Group. Bright Grey, the Royal London Group’s protection specialist, was reported to have paid out 96 per cent of the life insurance claims made within the last year. The average amount of pay outs totalled an impressive £92,000.

Kevin Stevens, the Head of Sales at Bright Grey stated:
"Rates are cheaper than they have ever been, but advisers shouldn't let the issue of price cloud their judgement when advising on life insurance. The single most important factor clients should be interested in when buying life insurance is whether it will pay out or not. So it makes sense that enormous consideration is given to providers' claims paid statistics."


"Beyond the statistics, another big consideration is the level of service claimants receive and how smoothly the claims process is. So, in order to really treat customers fairly and provide the best possible advice, advisers really need to compare providers and base their recommendations on this essential information."

Research independently suggests that claims are becoming more and more successful, as people are increasingly becoming more educated about life insurance policies and the type of plans that they need to provide true coverage for their requirements. In addition, there is a great deal more press coverage surrounding the importance of disclosure and applicants are very much aware that the non-disclosure of existing medical conditions can result in invalid policies at claim time.


Eric McCutcheon