Insurers Tackle Protection Insurance
Protection Insurance is a necessary product, will it become more popular? The insurance industry is at last making the right moves. We hope that they are successful. Read this article to find out what is now happening in the insurance market.
Not Many expert financial advisors would dispute that protection insurance cover should be the foundation of most peoples financial planning whether it’s protection against the damage of premature death, cover for unemployment (particularly now with the arrival of the credit crunch), long term illness or accident.
Life assurance is rightly the bed rock of financial preparation whether it be put in place to cover your home owner loan or provide a tax free lump sum for your dependants in the event of your demise. Alas, some other forms of protection insurance have a less desirable reputation. Payment Protection insurance has a name for being miss-sold and critical illness cover has formally suffered from extensive policy exclusions which make it possible for the insurers http://www.globalreinsurance.com/how-insurers-can-tackle-the-growing-uk-cyber-crime-problem/1408082.article to decline a high proportion of claims, even if they seem authentic.
But last month a shimmer of light materialized when Scottish Provident made known its first 1/2 figures on the outcome of claims on its critical illness policies. These numbers appear to signify that at last the problem of unintended disclosure of health particulars when the policy application is concluded, is being resolved.
Not long ago critical illness cover claims were being routinely rejected on the merest suggestion that the client had omitted any slight medical detail – even a foot infection or a sore throat! In line with the figures reported by Legal and General, their claim refusals have dropped sharply from 6.8 per cent last year to 1.7% in the previous 6 months.
Why has this happened? Norwich Union, Friends Provident, Scottish Provident, Axa, LV, and Scottish Equitable have put forward a range of adjustments planned to reduce their refusal rates. They start off with an utterly obvious explanation of the magnitude of complete medical disclosure right down to when they last saw their Doctor no matter how inconsequential the cause. And some insurers such as Axa get a medically trained person to telephone each potential client to discuss their medical history in detail. Then when the life insurance quote goes on risk, some companies are telling again the policyholders of the requirement of full medical revelation and giving them the option of correcting or adding the information on their application.
If the latest details are assessed as increasing the insurer’s risk, then the insurance company will inevitably increase the monthly premium– but that’s surely far better than paying the original payment for years and then having a claim rejected.
The insurance companies should have taken route years ago as their softly, softly style has dented the consumer’s assessment of protection insurance cover. Nevertheless there is an unquestionableneed for protection insurance so let us hope that it gets the popularity its so rightly deserves.