Life Insurance Critical for Helping Families
The ABI Publishes Figures its 2008 Figures
If Life Insurance is one of those areas that you do not wish to think about then perhaps figures released by the Association of British Insurers (ABI) will convince you of the necessity to acquire cover in case the worst happens.
According to the ABI, 2008 saw more than 100 families a day helped by claiming on both life and critical illness insurances. With the average claim at around £52,000 this accounts for a lot.
It shows that in the most difficult of situations life insurance, along with critical illness insurance, can help out so that financial burdens are not added to the long list of problems.
The ABI reports that a high number of critical illness claims were made during 2008, with 90% of them paid during the period – a figure that rose from the figure of 80% in 2005.
They cite their own Code of Practice as the reason for the rise in successful claims, pointing out that less people had claims rejected on the grounds of medical information not being disclosed.
There was success with the number of life insurance claims paid out as well, with less people being rejected in that area as 97% of life insurance claims were successful.
The ABI hopes that with time more life and critical illness claims will be successful as they take steps to improve the industry further.
“The insurance industry pays out £5.9m every day in life and critical illness insurance claims, making a real difference to people’s lives at the most difficult of times,” said Nick Starling – the director of General Insurance and Health for the ABI.
He continues, “Insurance companies want to pay all valid claims, which is why the ABI is not complacent and continues to look at ways to reduce the number of claims declined even further.
“The new ABI code is making a dramatic improvement to the number of critical illness claims we pay. We have been working with the Law Commission so that the principles of our Code are embedded into law.”
Source: ABI Press Release Dec 2009
