Just another WordPress weblog

Summary
In this article we explain  how Financial Protection Insurance may become more popular
with the insurance market at long last making constructive steps that should with a bit of luck be successful.
Most specialist  advisors would be of the same opinionthat Financial Protection Insurance is vital to the majority of families, whether it may be a  safeguard in the event of prolonged illness, premature death, cover for an accident or loss of employment (especially in the present economic climate).

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 percentage of other Financial Protection Insurance policies, do not do not have similar sound qualities and have been branded as being miss-sold.  Also, based on what we are now aware, critical illness cover has suffered because of astonishing omissions from insurance policies making it feasible for insurance companies to reject many claims, as genuine as they may be.

However, a little faith was restored when Norwich Union reported on the conclusion of claims on Critical Illness Cover on their 1/2 yearly statistics. 

Critical Illness claims were being declined because clients did not reveal their full health record.  As a result Legal and General  says that in the last five months the number of declined claims has reduced considerably from 6.8 per cent in the previous year, to 1.5 per cent.

Why?  We think, not only Aviva but all of the insurance companies, because of damaging public relations, have been put into a position whereby they must diminish the number of claims that are rejected. Does this show how strong the press can be?  Debateable perhaps – you may think we are dubious but we think there are other issues that encouraged the insurers to make modifications.  A short time ago, as a result of bad press, sales of Critical Illness Cover  have declined which in turn has noticeably influenced the insurance company’s profit. This is more likely to have been the catalyst to promote change!

Scottish Provident, Friends Provident, Axa and Norwich Union have instigated some major changes purposely designed to decrease their rejection rates. Firstly, they silhouette clearly that all medical disclosure, however trivial a visit to a Doctor could have been, must be includedmade known.  Friends Provident, amongst others will get a medically trained person to telephone every applicant to discuss all the details of their medical history.  If the policy then goes on risk, some policyholders are being reminded that it is vital that they give complete health disclosure and they are allowed to add or correct any information on their application document.

The Insurance Company may then re-evaluate the risk and if it is believed to be increased the monthly payments will most likely be raised – which seems more sensible and ultimately more appropriate than paying the original premium then having a claim rejected owing to non-disclosure of medical history.

This process should have been put into operation by the insurers a long time ago as the public’s concept of Protection Insurance has eroded by their somewhat strange approach. Without doubt, there is an obvious and essential need for protection insurance so we can hope that it is able to re-establish trust and then the popularity it duly deserves. 

 Make sure that you compare life insurance policies before you make your final decision. Prices vary enormously and so does the cover and various additioanl extras.