Insurance Companies Improve Protection Insurance
Most specialist financial advisors would concurthat Financial Protection Insurance is crutial to a good number of families, whether it may be a precaution in the event of premature death, prolonged illness, loss of employment (especially in the present economic climate), or cover for an accident.
Life Insurance is the foundation of all financial assurance to ensure a lump sum that is not taxable, in the event of a death or for cover for a mortgage. Regrettably, a proportion of other Protection Insurance policies, do not have the samedo not have similar} reputable qualities and have been branded as being miss-sold. furthermore, based on what we know, critical illness insurance has suffered asa result of astonishing omissions from policies making it feasible for insurers to reject a claim even if it is genuine.
However, some faith was re established when Aviva gave details on the conclusion of claims on Critical Illness Cover on their half yearly figures.
Critical Illness Insurance claims were being declined because customers did not reveal their complete health background. As a result Standard Life says that in the last 6 months the number of declined claims has reduced substantially from 5.7% in the previous year, to 1.6 per cent.
Why? We think, not only Legal and General but all insurers, because of damaging public relations, have been placed in a position whereby they must diminish the amount of claims that are rejected. Does this prove how powerful the media can be? Debateable perhaps – you may think we are doubtful but we think there are other issues that urged the insurance companies to make modifications. A short time ago, as a result of |bad press|dire media}, sales of Critical Illness Cover have declined which in turn has clearly affected the insurers profit. This was probably the catalyst that promoted the change!
Friends Provident, Norwich Union, Scottish Provident and Axa have instigated some major changes purposely designed to decrease their rejection rates. Firstly, they outline clearly that all medical disclosure, however trivial a visit to a Doctor might have been, must be includedmade known. Scottish Provident, amongst others will get a medically trained person to telephone every candidate to discuss all the details of their medical history. If the insurance policy then goes on risk, a number of policyholders are being reminded that it is essential that they provide full health disclosure and they are permitted to add or put right any details on their application form.
The Insurance Company may then reconsider the risk and if it is believed to be increased the monthly premium will most likely be increased – which seems more reasonable and eventually more acceptable than paying the original payment then having a claim rejected as a result of non-disclosure of medical facts.
These measures should have been taken by the insurers years ago as the public’s perception of Protection Insurance has deteriorated by their somewhat ‘Off the ball’ approach. Without doubt, there is a great need for protection insurance so we can hope that it manages to re-build trust and then the esteem it justly deserves.