Need for truth in life insurance applications reiterated

Tue, 08 May 2007

James Harrison, the chief executive of Insurancewide.com has gone on record following a Which? investigation into the state of the life insurance and critical illness insurance markets.

Harrison reportedly commented: "Consumers should know what they want to buy and tell the truth. Buying the policy is not enough; you need to understand it and to understand the mechanics of making a claim . Ask yourself why you are really buying insurance . If you are not sure about every aspect of the policy it could be a wasted investment and you will have false peace of mind about the extent to which you are covered. Start by deciding what you need to be covered for and whether you can ultimately make a claim for those things."

The need for disclosure has been reiterated several times in recent weeks. Buying the wrong type of policy due to not telling the truth is a recipe for disaster. Harrison reportedly concluded: "Insurance is ultimately a promise by the insurer to pay out but this is one industry where the devil really is in the detail. Watch out for limits, exclusions and optional policy extras. Shop online to make thorough comparison and compare like with like. Don't just focus on price; focus on the detail of the cover. Don't be fooled by ridiculously cheap premiums - they often carry huge excesses, some of which are disguised as compulsory when in fact you can reduce your voluntary excess limits in return for a higher premium."
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

newsnews rss
Life Insurance news
New life insurance deal - Thu, 21 Aug 2008
Life insurance agreement between two companies - Mon, 18 Aug 2008
UBS unable to cover life insurance clients - Fri, 15 Aug 2008
More News
LV 50 Plus Plan

The LV 50 Plus Life Insurance Plan from Liverpool Victoria is cover for people over the age of 50.
Click here to apply

Mortgages