Are Life Insurance Claims Paid and why some aren’t?
We were contacted by the family of Mr F in October 2017. Sadly, Mr F had passed away and a claim needed to be registered for life insurance.
Mr F, had a decreasing term insurance policy taken out through Future Proof to pay off his mortgage in the unfortunate event of his passing away. Our dedicated Claims team spoke with Mrs F and helped register the claim.
The claim was agreed very quickly in November 2017 and the Insurance company in question, backdated the claim date to September 2017. Ensuring that the family received an extra £1000 to pay towards the mortgage. The reason why the insurer overpaid the claim was because they noticed that Mr F. was diagnosed with the Terminal illness in September 2017, even though he did not die until October 2017.
The Industry Average?
Almost £10m is paid out every day to help customers cope with the financial difficulties that can arise as a result of a death, serious illness or injury. Protection insurance includes products such as life insurance, critical illness cover and income protection, which help families cope with financial strains following a life changing event.
The Association of British Insurers published that in 2016, 97% of protection claims were paid. When claims are declined this is usually due to either the claim being for a condition not covered by the policy, or the customer not disclosing important information when taking out the policy e.g a pre-existing health condition, or a dangerous hobby.
Whilst you are welcome to get a quote on-line but we would recommend you talk to one of our advisers.
Your adviser will take into account your medical history. Any quote which they provide to you will take into account to your situation, your medical history, as well as your budget!
An on-line quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.
Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.Call me back
Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success. All applications are subject to underwriting.
- Jon’s story – a critical illness insurance claim story
- Income Protection Case Study For A Self Employed Claim.
- How quickly can claims be paid?
Source – ABI
Client ID 80381715