Life insurance claims - correcting the myths

Nothing matters more than the happiness and security of our loved ones, and we’d do anything to help protect their future.

Life insurance can help provide the peace of mind that your loved ones could be financially secure if the worst happens. But there are plenty of things to consider when purchasing cover. You’ll want to find a product to suit your needs at the right price, but you’ll also want to choose a provider you can trust.

You may also be concerned, thinking about the many myths that surround the product but we’ll try and help make things easier by shining a light on some of the most common misconceptions:

Insurance companies don’t pay out on claims

People believe that insurance companies try to avoid paying claims, but in reality, the vast majority of claims are paid. Aviva publishes claims figures every year and last year we paid out 98.9% of life insurance claims and 92.5% of critical illness claims.

Our top three tips to help ensure your claim is paid are:

  1. When you apply for cover, ensure that you answer all questions fully, truthfully and accurately. If you neglect to disclose something when applying, this could impact your claim.
  2. Make sure your family knows you’re covered. It may sound silly, but making sure your family are familiar with the terms of your policy can really help when it comes to claiming.
  3. If in doubt, ask! If you’re unsure about something when applying, or claiming, you could speak to a financial adviser or call your provider.

Insurance companies make it difficult to claim

Your life cover can help to provide peace of mind for you and your family. Whilst you’ll be most concerned with the financial support your loved ones could receive, you’ll also want to know that their needs will be managed appropriately throughout the claims process. Losing a loved one is a distressing time, so Aviva staff are trained to help making a claim as straightforward as possible. Whether a claim is made over the phone or through the post, a member of our experienced, UK based claims team will help take care of everything and will be available 5 days a week to support your loved ones through their claim.

Insurance companies don’t care about me, they will just treat me like a number

People commonly assume that insurance companies consider their customers to be nothing more than a premium-paying policy number, but we want to change that. At Aviva we recognise that, whilst a life insurance plan can help lessen the financial burden of losing a loved one, the emotional impact can be just as difficult to manage. That’s why we work in partnership with the charity Grief Encounter, an organisation providing grief counselling and support for families affected by loss, to help make sure your loved ones are looked after in their time of need - and we include this within our cover as standard.

Life insurance will only pay out when I die

Life insurance is usually designed to pay out on death, however, our life cover includes a terminal illness benefit at no extra cost. If you’re diagnosed with a terminal illness and have less than 12 months to live, we’ll pay out so you and your loved ones have the financial support you need. If you’re looking for a more comprehensive level of protection, you could also consider our critical illness cover which could ensure that you and your family will receive a pay out if you are diagnosed with one of the conditions we cover.

I’m covered at work so I don’t need additional cover

Many employers offer their employees life cover as part of their benefits package. This is commonly referred to as death in service benefit. Typically, death in service benefit provides a lump sum of around four times your salary to your nominated beneficiary, if you die. This will vary depending on your employer. Death in service benefit can offer a great safety net if you die during employment but, depending on your personal circumstances, you could still benefit from additional cover. Remember, all employers are different and if you leave your current employer, you may lose the benefit.

WC05285 08/2016

Back to top