The UK-based insurer, Bright Grey has announced that 95 per cent of critical illness claims made in the first six months (H1) of 2010 were paid out. The average payout in the first half of the year stood at £90,000.
Of the 5 per cent of rejected claims only 1.7 per cent were declined for non-disclosure at the point of application. A claim may be rejected for non-disclosure if false details were knowingly provided when making the application for insurance. This is why it is vitally important to be as honest as possible when completing all required application questions, such as health and lifestyle question.
The claims payout rate of 95 per cent in the first half of 2010 was 2 percentage points higher tha the rate reported for 2009. In 2009 the insurer paid 93 per cent of all claims made, which was around 10 per cent higher than the same period in 2008.
In the critical illness market a payout rate of 95 per cent is a solid figure to report. All market leading insurers are reporting payout rates of over 90 per cent, which is extremely encouraging to see and should reassure consumers that valid claims will be paid.
The claims history released by Bright Grey highlight that serious illnesses can strike at any age and is not reserved for older members of society.
Out of all claims made over 30 per cent were made by policyholders under the age of 41. Unfortunately the youngest claimant was only 22 years of age.
In the last six months the largest number of claims were made for cancer related medical conditions, representing 74 per cent of all claims made.
This type of plan is a long-term form of financial protection against the risk of serious illness or injury. Plans payout a lump-sum benefit should the policyholder suffer a serious illness specified in the policy document, with leading plans covering around 35 medical conditions.
Mortgage critical illness insurance is often taken out with life cover in order to provide mortgage protection from the risk of both death and from suffering a serious illness or injury.
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