Critical illness and life payouts continue to rise
New data released by the Association of British Insurers (ABI) has revealed that an increasing amount is being paid out to those who hold critical illness and life insurance policies.
Last year 40,000 families and individuals received a total of £1.9bn, with an average payout of £47,166, roughly twice the average salary in the United Kingdom.
In 2007 the number of claims being rejected reached 16%, since when the industry has taken action to help policyholders become better informed, reducing the number of claims turned down.
ABI Director of Life and Savings Maggie Craig described critical illness and life insurance as crucial support for people during the most testing times of their lives.
Craig added that the insurance sector realised the importance of rapid payouts for such policies, and said it was working hard to ensure swift payment for valid claims and to reduce the number of rejected claims.
Earlier this year Legal & General warned those looking to tighten their belts against the temptation to cut their insurance coverage, warning that it was a false economy to axe life or critical illness coverage which can provide vital financial support should the breadwinner suddenly become unable to work.
Category: ABI News, Health Insurance News, Insurance News, Life Insurance News
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