|
According to some financial experts insurance companies are more likely to reject a life insurance claim if the claim is for a large amount. The claims are made by financial services support threesixty.
 Research was recently carried out by threesixty into twelve UK life insurance providers. Analysis was carried out into the companies' accepted claims and their rejected claims in order to see whether there was a trend with regards to how much the claims had actually been for.
According to the results of the study the average amount for claims that were being rejected over the last twelve month period up to March 2007 was just over seventy thousand pounds. The average amount for claims that had been paid out over the same period was just over sixty thousand pounds. According to officials from threesixty, the reasons for higher claims being rejected more often is not so much the fact that it is for more money, but because the potential financial losses to the insurance companies means that they are more likely to be investigated more thoroughly.
One official from the financial services support group stated: "Our figures demonstrate it is absolutely essential that IFAs advise their clients to disclose all medical information at the point of application. Any potential problems should be pointed out to them at outset as part of good business practice, reinforced by the treating customers fairly requirements."
An analysis of critical illness claims was also carried out as part of the study, but this showed that there was less of a difference in terms of the amount of the claim between claims that were being rejected and those that were being paid, with the average difference being around four thousand pounds rather than ten thousand as with life insurance claims.
Tom Smith
26.05.07
|
