What Is The Percentage Of Whole Life Insurance Policies That Pay Out?
According to recent research, 42% of people believe that life insurance providers do not give much thought to the details of the claim and decide which claims to pay out. However, this is just a myth. In fact, 98% of all life insurance claims resulted in a successful payout in 2021, which has been increasing for the third year in a row. This article will explore the payout rates of some of the leading life insurance providers in the UK.
Payout Rates of UK’s Best Life Insurance Providers (as of August 11th, 2022)
| Provider | Payout Rate |
|---|---|
| Aviva | 98.9% |
| AIG | 96.5% |
| Zurich | 98% |
| LV= | 98% |
| Legal & General | 98.6% |
It is important to note that each insurer has its own terms and conditions and criteria for assessing claims. While pay-out rates are important, it’s crucial to find the right cover that meets your needs and budget. Reassured, an FCA-regulated life insurance broker, can provide you with personalised, no-obligation quotes from these providers and help you find your ideal cover solution.
Understanding Life Insurance Payouts
A life insurance pay-out refers to the amount of money that is paid to a beneficiary upon the policyholder’s death. This can help cover various financial commitments, such as mortgage debts, household budgets, personal debts, funeral costs, childcare, and inheritance. Life insurance pay-outs are not tied to any specific financial commitments, meaning loved ones can spend them as they see fit.
Different Policy Types and Their Pay-out Rates
Different policy types have different pay-out rates. For example, in 2021, 97.3% of term life insurance claims were paid out, while 99.99% of whole of life claims were paid out. Income protection and critical illness cover also have their own pay-out rates.
It can take up to 30 days for the funds from a life insurance policy to be paid out, provided that the claim is valid and all requirements are met. However, there are some instances where a pay-out can be denied, such as suicide or death caused by drug or alcohol abuse.
Conclusion
In conclusion, life insurance providers do pay out, with a 98% payout rate in 2021. It’s important to find the right cover that meets your needs, and Reassured can help you compare quotes from the UK’s leading providers.
