| Latest News 11/03/1010 at 11:54am GMT
In a survey conducted by Norwich Union they have found that up to seven percent of their policy holders provided false information about their health when applying for life insurance and critical illness policies.
The company wrote to 5,000 customers requesting that they validate any information that they may have entered incorrectly on their application. Roughly fifty percent of the applicants responded to the initial request with the approximately seven percent of the applicants admitting to providing misleading information which ultimately could invalidate their policy.
Some of the major falsifications of information included things like denial of being a smoker when the applicant was and giving incorrect information about their weight or pre existing health problems.
In a separate poll by Norwich Union they concluded that up to fifteen percent of applicant’s submitted false information when applying for insurance.
The general consensus from most life insurance companies is that it is just not worth falsifying information on their application form because if you are found out you risk having the policy invalidated. This ultimately means that the insurance company has the right to withhold payment on their policy because false information was supplied.
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A study by the post office has concluded that homeowners could be overpaying by as much as £310 million every year by taking out life insurance with their mortgage provider which they believe is compulsory.
In the recent poll over a third (34%) of people completing a mortgage application bought life insurance through their mortgage provider, which could be costing them an additional £2,000 each.
Interestingly from the poll it was identified the main reason for people choosing life insurance in this way seems to be confusion with 35% of the respondents saying they felt pressured into buying it, or believed it was compulsory to purchase life insurance with the same provider.
More than half (54%) of respondents said it was simply more convenient to arrange their life insurance and mortgage together, despite the fact they could be wasting hundreds of pounds by failing to shop around.
Duncan Caesar-Gordon, head of protection at the Post Office, said: “Homeowners’ finances are already being stretched on a daily basis, so it’s essential that people save money where they can.
"This is why it’s vital that homeowners understand it is not a requirement to take out life insurance with the same company which provides your mortgage. People have the right to shop around across the market and decide for themselves which product offers them the best value and is the most suitable for their life cover needs."
One of the most worrying facts that seemed to come out of the report is that 16% of people polled are aware that they are not getting the best deal when taking life insurance with their mortgage provider as they are aware that their provider doesn’t provide the best deals. |
Vegetarians and fish eaters are being offered lower premiums by Animal Friends Insurance (AFI) who offer a 6% discount to all customers who do not eat meat.
The reasoning behind the discount in their minds is simple, according to medical research you are less likely to suffer from major illnesses by being a vegetarian and abstaining from eating meat.
When speaking about Animal Friends Insurance (AFI) Elaine Fairfax, said: "The risk of vegetarians suffering from some cancers is reduced by up to 40% and from heart disease by up to 30%, but despite this they have to pay the same life insurance premiums as meat eaters.
"We believe this is unfair and the life insurance industry needs to acknowledge the fact that being a vegetarian can have a very positive impact on life expectancy and reduce premiums accordingly." In effect they are claiming that vegetarians are subsiding meat eaters by not recognising the health benefits of being a vegetarian.
The policy is underwritten by LV=, formerly Liverpool Victoria and the discount is being funded by AFI who are paying the discount out of the fee they get from AFI with a full priced still being available to meat eaters (minus the discount).
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