Edinburgh, UK (PRWEB) May 29, 2009
Scottish Widows, one of the most trusted brands in life insurance*, has today published details of its critical illness cover claims, showing that between November 2007 and October 2008 an average of £543,000 was paid out each week. This is equivalent to more than £28 million over the 12 month period.
For the third year in a row, the number of claims turned down as a result of non-disclosure has reduced, with it now down to 2% (5% the previous year).
Richard Jones, Head of Protection at Scottish Widows commented, "We're pleased to have increased the claims we've paid and to have significantly reduced the number of claims declined due to non-disclosure. This reduction in non-disclosure can be put down to a number of factors including the adoption of the Association of British Insurers Code of Conduct on non-disclosure, which has increased the number of proportionate claims that are paid. In addition to this, we've simplified application forms and processes and also produced literature to help Financial Advisers and customers understand the importance of disclosing all relevant information."
Over the course of 2008, the main three reasons for a claim were cancer, heart related and stroke. The average age for female claimants was 45, with men three years older at 48.
The average term of policy at claim is five years and cancer is still the main reason for a claim by both men and women, with breast cancer affecting 51% of female cancer claimants and testicular cancer affecting 10% of males.
Cervical (5%), ovarian (5%) and malignant melanoma (5%) were the other most claimed for cancers for females, whilst for men it was Hodgkin's/Lymphoma (9%) and lung cancer (9%).
Critical illness cover is designed to insure against the most common types of severe critical illnesses and as a result not all critical illnesses or severity of illness are covered. The number of claims declined because they weren't covered by the policy was 10%. Scottish Widows are working to reduce this figure by ensuring they are transparent about what is covered in all communications and conversations.
Richard Jones added,
"Critical Illness cover is extremely important, no matter what the economic climate, as illness can affect us at any time. At Scottish Widows, it's our aim to raise awareness of the benefits of critical illness cover. We want to play a key role in helping people take control and prepare for the unforeseen, being there to support and provide them with money when they need it most."
Scottish Widows provide a wide range of financial services including life insurance, pensions and individual savings accounts (ISAs).