Record lows on cost of life insurance

According to recent reports the cost of taking out life insurance are falling, and over the past decade has fallen by around 30 percent. Read more

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Insurance industry commits to pay out more

The insurance industry’s commitment to pay out more on claims for critical illness, income protection and life insurance has been welcomed by industry experts.

Previously clients, insurers and medical practitioners were sometimes “unsure of what position to take” when dealing with a claim where medical information had not been disclosed unless the customer has deliberately withheld it.

Graeme Trudgill, technical and corporate affairs executive of British Insurance Brokers’ Association, said: “The Association of British Insurers (ABI) are trying to make the situation a bit more black and white to help customers do the right thing and to pay the claim.”

He added that some claims have not been accepted for “various reasons” and critical illness has had a “bad time” in the press.

The ABI changes are hoped to make the process of making a claim more consumer friendly.

According to LifeSearch, one in five critical illness claims are rejected.

However, according to its research carried out in the fourth quarter of 2007, there has been a marked improvement in the number of claims being paid out in the last 12 to 18 months.

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Life insurance prices offer savings

Life insurance policy holders are wasting millions of pounds by not shopping around or sticking with their old providers, it was claimed this week.

The price of life insurance has been dropping steadily in recent years, but many of these benefits have not been passed on to existing customers who do not review their policies, according to LifeSearch.

With average premiums down 40 per cent compared to five years ago, there are big savings to be made, while the price of critical illness insurance also began to fall during 2007.

Matt Morris, LifeSearch Policy Adviser, said: “There are a number of actions that customers can take in the new year to freshen up their finances and save a bit of money. The main thing is to take action. Don’t wait until New Year’s Day 2009 comes round before you start thinking about this again.

“However, it is important to remember that price should not be the only consideration when choosing a protection product and customers should look at the policy that offers the best value for money. This means looking at the product which most suits individual circumstances and offers additional benefits.”

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