Scottish Widows' £25m payout for critical illness
Scottish Widows has announced that it has paid out over £25 million on 774 critical illness policies for the twelve months up to October 2006, but warns that 16 per cent of claims were turned down. The most common claim is for cancer, which accounts for 61 per cent of claims, followed by heart disease and strokes.However of the claims that failed, 53 per cent were refused because people had not disclosed information when they took the policy out and 43 per cent of people were denied a payout as the claim did not meet the policy definition.Richard Jones, interim protection market director at Scottish Widows, said: "Through its work with the Association of British Insurers and the Critical Illness Working Party, Scottish Widows has been working to address the issue of declined claims."To reduce non-disclosure, application forms have been improved to make them clearer for our customers. To reduce the incidence of a claim not meeting the policy definition, the industry has made real headway in improving the clarity of illness definitions - thus ensuring it is clearer to consumers about what is, and isn't, covered."Although the benefits, ie fewer declined claims, won't be seen for a couple of years, these measures all go towards making each step of the process - from application to claim - clearer for consumers."
UK government are the losers in EU shakeup
On the surface it appears that the UK government has been duped by its EU partners with French President Nicolas Sarkozy suggesting that Britain is the "big loser" in the recent EU shakeup. After apparently agreeing a deal with the French government, the UK appears to have walked in to a trap with Michael Barnier, the former French agriculture minister, catapulted in as commissioner for the intern...Read More
Have you instigated a pension fund transfer recently?
As the UK pension fund industry gets set for major changes in the future the FSA (Financial Services Authority) has again questioned the quality of advice given to some pension fund members who transferred out of employee pension schemes. If you have recently transferred from an employee pension scheme into a private pension arrangement it may be worthwhile checking the terms of your transfer and...Read More
UK banks increase savings rates to fund mortgages
Over the last few weeks there has been a significant increase in savings rates across UK with banks and building societies all very keen to secure finance for the future. By increasing savings rates to around 5%, a full 4.5% higher than the UK base rate, they are then able to charge in excess of 5.5% for mortgage arrangements and take the difference as their profit.
It is no surpris...
UK government is set to take 43% of Lloyds HBOS
As we approach the end of the fundraising period for the Lloyds HBOS merged entity it has been revealed that the government is expected to end up with 43% of the enlarged group as both share prices are trading below their offer prices. This is likely to cost the UK government in excess of £17 billion and further tighten the government's grip on the UK financial sector. What next?
Life Insurance ‘Too Expensive’ for Brits
Research from Beagle Street has found that Brits are shunning life insurance policies in large numbers, because they believe it is ‘too expensive’ 39pc of people who took part in the research claimed they felt that life insurance policies cost too much, despite the fact that prices start from just £3 per month. This means that more than half of British adults are at risk of leaving their...Read More