A lot of trained advisors would be of the same opinionthat Protection Insurance is crutial to a good number of families, either as a safeguard in the event of prolonged illness, premature death, cover for an accident or loss of employment (especially in the present economic climate),.
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. Unfortunately, a proportion of other Financial Protection Insurance types, do not do not have equivalentdo not have similar} reputable qualities and have been branded as being miss-sold. Also, based on what we know, critical illness cover has suffered due to shocking exclusions from insurance policies making it possible for insurance companies to reject a claim even if it is genuine.
However, a little confidence was restored when Legal and General gave details on the conclusion of claims on Critical Illness Cover on their 1/2 yearly figures.
Critical Illness Insurance claims were being turned down because clients did not disclose their complete medical history. As a result Aviva says that in the last seven months the number of turned down claims has fallen considerably from 5.7 per cent in the last year, to 2.3 per cent.
Why? We believe, not simply Standard Life but all of the insurance companies, because of harmful public relations, have been put into a situation whereby they must diminish the number of claims that are rejected. Does this confirm how powerful the press can be? Debateable perhaps – you may think we are sceptical but we believe there are other aspects that urged the insurers to make adjustments. Lately, as a result of |bad press|dire media}, sales of Critical Illness policies have fallen which in turn has noticeably affected the insurers profit. This is more likely to have been the catalyst to promote change!
Norwich Union, Scottish Provident, Axa and Friends Provident have instigated some prominent changes specifically created to decrease their rejection rates. Firstly, they outline plainly that all health disclosure, however minor a visit to a Doctor might have been, must be includedmade known. Axa, together with others will get a Doctor or Nurse to phone every candidate to discuss all the particulars of their medical history. If the insurance policy then goes on risk, a number of policyholders are being informed that it is important that they give full medical disclosure and they are permitted to add or correct any details on their application.
The Insurance Company may then re-assess the risk and if it is thought to be increased the monthly premium will likely be raised – which seems more sensible and eventually more appropriate than paying the original payment then having a claim rejected because of non-disclosure of health facts.
This action should have been put into operation by the insurers a long time ago as the public’s concept 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 is able to reinstate faith and then the recognition it rightly warrants.
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