Insurance Companies Take Steps To Make Protection Insurance Better
A lot of experiencedlqualified financial advisors would agreethat Financial Protection Insurance is necessary to a good number of families, either as 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 do not have equivalentdo not have similar} reputable qualities and have been labelled as being miss-sold. furthermore, based on what we are now aware, critical illness insurance has suffered owing to astonishing omissions from policies making it possible for insurers to reject claims even when they are genuine.
However, some confidence was reinstated when Aviva gave details on the conclusion of claims on Critical Illness Cover on their 1/2 yearly statistics.
Critical Illness claims were being refused because people did not divulge their full health history. As a result Legal and General reports that in the last 6 months the number of rejected claims has plunged considerably from 6.8% in the last year, to 1.5 per cent.
Why? We think, not only Legal and General but all insurers, because of destructive public relations, have been put into a situation whereby they must diminish the amount of claims that are rejected. Does this confirm how forceful the press can be? Debateable perhaps - you may think we are dubious but we believe there are other factors that encouraged the insurers to make modifications. A short time ago, as a result of |bad press|dire media}, sales of Critical Illness policies have dropped which in turn has visibly affected the insurers profit. This is more likely to have been the catalyst to promote change!
Axa, Friends Provident, Norwich Union and Scottish Provident have introduced some major changes purposely created to diminish their rejection rates. To begin with, they silhouette clearly that all medical disclosure, however insignificant a visit to a Doctor might have been, must be revealed. Scottish Provident, amongst others will get a medically trained person to telephone every applicant to discuss all the details of their medical history. If the insurance policy then goes on risk, a number of policyholders are being told that it is vital that they give full health disclosure and they are permitted to add or put right any information on their application.
The Insurance Company may then re-evaluate the risk and if it is believed to be increased the monthly payments will probably be raised – which seems more rational and ultimately more satisfactory than paying the original premium then having a claim rejected because of non-disclosure of medical history.
This process should have been applied by the insurers a long time ago as the public’s perception of Protection Insurance has eroded by their somewhat ‘Off the ball’ approach. Without doubt, there is a clear and necessary need for protection insurance so we can hope that it manages to restore faith and then the recognition it justly deserves.
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