Friends finds a few liars
According to recent research published by Friends Provident, many people are applying for insurance policies using false information and misunderstanding what they are receiving in their policy.
Friends conducted a survey of 2071 people. They discovered that five per cent of those who responded had lied on their protection applications. As many as 20 per cent of people signed up for a policy without first reading all the policy’s terms and conditions.
The insurance provider also asked people what they thought should happen to those who were dishonest on their application. The majority of respondents (54 per cent) said that those who lied on their applications should not be paid any benefits in the event of a claim. Fifteen per cent of respondents said that it would depend on the information the applicant withheld but that a percentage of the full payment should still be made.
According to the poll, most people learned more about life insurance using the internet and media sources. Financial advisors were the source of information for about 20 per cent of people researching policies.
The insurance provider asked people to prioritize their insurance needs. If people had only £5 each month for insurance spending, 28 per cent of people said they would put that money towards a life insurance policy, while 17 per cent said they would take out income protection. If they could spend the money on anything, however, almost a third of people said they could use the extra money for food.
Follow these links to find out more or to get a quote on Travel insuranceYasmin Purnell Editorial
14/02/2008
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