Life insurance Updated:
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."
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