The Association of British Insurers has made a call for life insurance policies to pay out in part as soon as a claim is made. At this stage, many life insurance dependents face a period of financial hardship whilst waiting for the lengthy legal process that determines life insurance policy payouts is completed.
The director general of the ABI, Stephen Haddrill, called for the current practice to end and that partial payments on life insurance cover should be made instantly, and also not be subject to tax. At this stage, the decision rests with HMRC – Her Majesty’s Revenue and Customs.
Insurance companies, pending approval of the idea, will then allow policyholders to nominate a beneficiary who could be paid part of the benefits as soon as the policy is claimed on.







