|
Successful Critical Illness Claims Help To Boost Life Insurance Pay Out Statistics |
Written by Phil Benson
Saturday, 07 June 2008
|
Scottish Widows has released critical illness data which has boosted statistics for pay outs during the years 2000 and 2007, to a total amount of £150 million for more than 4,500 critical illness claims. The figures showed that the number of successful claims had risen which is a comforting thought for people who are cynical about life insurance loopholes and levels and frequency of pay outs. In the year up to October 2007, more than £29 million had been paid out on 847 critical illness claims, with the most common ones affecting people in the UK falling into five main categories. Cancer made up 61 per cent of critical illness claims, with heart related applicants totalling 21 per cent and stroke claims accounting for 7 per cent. Multiple sclerosis represented 4 per cent of critical illness claims with children's cover making up 2 per cent. The study by Scottish Widows also revealed that the average age of a male claimant with critical illness insurance stood at 47 years old, whilst the average female claimant was 44 years old. Further data showed that policy holders would have their cover in place for an average of four years and 11 months before they make a claim. Protection market director with Scottish Widows, Richard Jones said, "The need for financial protection for both the family and business has never been greater, especially with more families relying on two incomes and the increase in the number of people who are self employed. Yet lack of consumer confidence is contributing to people failing to take out the valuable protection that they and their dependants need." By releasing their claims history statistics, Scottish Widows critical illness cover division hope to restore confidence that the majority of claims do result in a pay out. The figures revealed that between October 2006 and October 2007, just five per cent of claims had been declined, largely due to a lack of sufficient information as evidence to support the request. Nine per cent were refused as a result of their claim not being covered by the policy definition. Jones said, "To ensure our literature is clear and to minimise the opportunity for misunderstandings, Scottish Widows regularly reviews and gets feedback on our application forms and customer literature. The differences that this and other initiatives can make are clear when you see that last year we paid out more claims than previous years and we're paying out a higher percentage of claims." Critical illness insurance will benefit people if they are diagnosed with any condition covered by that policy, by paying an upfront lump sum which will therefore mean the critical illness rider ceases to be of use. The basic sum assured will continue to be in operation however. A general rule amongst insurers is that if someone survives for 30 days after the diagnoses, the entire sum insured, including critical illness, is paid. Compared to general insurance, the entire cover is paid irrespective of the actual money spent on treatment. Article Source: http://www.ArticleBlast.com |
About The Author:
Phil is an author of several articles pertaining to Life Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.
Phil is an author of several articles pertaining to Life Insurance. He is known for his expertise on the subject and on other Business and Finance related articles.
| Comments On This Article: |
Only registered users can write comments.
Please login or register.
You are welcome to publish this article free of charge on your website, newsletter, or e-zine, provided:
- You don't change the article in any way
- You include the entire article, including the "about the author" box
- All hyperlinks must remain intact, including email addresses, and the link to ArticleBlast.com at the bottom
- In doing so you agree to indemnify the article's author, and ArticleBlast.com and its directors, officers, employees and agents from and against all losses, claims, damages and liabilities which arise out of its use
- It is also recommended that you provide a courtesy copy of your publication to the author of the article
