rank of life insurers paying out without quibble
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moneysaver129
Posts: 67 Forumite
Is there a reliable annual league table of life insurers and their likelihood of their paying out? There seems a dearth of info on this in the public domain.
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Most insurers publish their annual claims history. Generally for life insurance only plans claims rates are around 98-99% with little variance between providers.
The rate then drops to between ~89% - 95% for critical illness plans and similar for long term income protection plans.
There's not an annual league table that I'm aware of though.0 -
With the use of the term quibble, it's worth pointing out that all insurance companies will do their due diligence. Having gone through the proceess its night onerous but did take 3 months to collate all the data to make a decision. I think life insurance pays out quicker than critical.Make £2023 in 2023 (#36) £3479.30/£2023
Make £2024 in 2024...0 -
Life insurance has a very high payout rate across the board as there are very few exclusions to a claim. Suicide within the first year is a common one for example.
Generally there'll be almost no variance on payout rates between insurers and you'd only need to worry if you've not declared something important on inception of the policy.0 -
Most life assurance plans (not life assurance not life insurance - the latter often have clauses) will pay out quickly and without issue.There seems a dearth of info on this in the public domain.0
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They will not pay out without a quibble - you have to be dead first!0
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As has been said, generally speaking the payouts on life insurance at very very high.
They generally only refuse to payout if:
1) You are not dead.
2) You missed something significant off the application form.
By significant I mean, if you have high blood pressure and did not disclose it then they may not pay out or may not pay out the full amount. If you had a cold, then that is not significant.
I used to work for a life office and we once had a claim on critical illness for a broken arm. That then had to go down as a declined claim.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
In terms of speed of payout, where the policy proceeds form part of the Estate, a delay is often not the fault of the Life Office but happens at the policyholder-end of the chain. The length of time taken to obtain a Grant of Representation (Probate/Letters of Administration ) is often a delaying factor and can drag-on for months in some complicated cases.0
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Not aware of a ranking, but for what is worth Comparethemarket gives you the % in the details of each insurer that provides a quote. I assume other comparison sites have similar.0
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Indeed, what sort of quibbles are you anticipating?
Life insurance is a very simple product. It pays out if you are dead. It doesn't pay out if you are alive. If they are not sure if you're dead, they tickle you and see if you smile..(Or possibly they ask for a death certificate, but I prefer to think the former is true.). It doesn't come with a 200 page list of exclusions and conditions, so the only reasons it might not pay out are
(1) you are alive
(2) you didn't answer the questions about your health truthfully when you took out the policy or
(3) you took your own life in the first year of the policy (usually the only significant exclusion)
None of these are common scenarios, hence the very high payout rates.0
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