Life Insurance News: Insurers Less Likely to Pay Out on High Life Claims
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Article Published: 15-May-2007
Research conducted by Threesixty has found that higher value life insurance claims are less likely to be paid out by insurers.
Threesixty tracked the payouts of 12 top insurers over a 12 month period and found that the an accepted claim had an average value of £60,172 and a rejected claim had an average value of £70,121, a difference of over £10,000.
The report found that amongst the insurers there was a rejection rate of between 0 and 25%, with an average of 6.65%.
The biggest reason for a claim being rejected, at 99.59%, was non-disclosure of medical conditions, with suicide exclusions making up the rest.
David Ingram of Threesixty said that it was essential for life insurance applicants to disclose medical information or risk rendering their policy invalid.
Source: Insurance-4-life.co.uk
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