Critical illness payout up at NU - Life insurance - News | moneyfacts.co.uk

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Critical illness payout up at NU

Critical illness payout up at NU

Category: Life insurance

Updated: 26/11/2012
First Published: 25/03/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

One of the UK's biggest life insurers saw its critical illness (CI) payout increase by 14 per cent last year.

Figures from Norwich Union show it paid out 1,625 CI claims during 2008, amounting to £121 million being paid to people in need. The figure in 2007 was £106 million.

A further £216 million was also paid to families of people who have died or been diagnosed with a terminal illness.

Ninety per cent of all claims were paid, with the average value being £75,000.

Eight per cent of claims rejected were not covered by the policy, while the remaining two per cent were rejected on the grounds of non-disclosure of medical facts at the outset of the policy.

While rejections on these grounds of non disclosure have been halved in the last 12 months, Michael Whyte, chief underwriter, said: "We are sharing this information because we want to raise the awareness of this issue so that we can begin to tackle it as an industry. It is in our interests to ensure we do not have customers who end up disappointed at difficult times in their lives."

Moneyfacts.co.uk have partnered with Torquil Clark Life Insurance to help you find the best life insurance deal.

Speak to an adviser about your life insurance needs

Under no circumstances should you cancel an existing life insurance policy until a new one has been arranged. Torquil Clark Life Insurance is a trading name of LifePolicies Direct Ltd which is authorised and regulated by the Financial Services Authority.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Close