Wednesday January 23, 10:09 AM
Truth counts for insurance policies
By Barney McCarthy
Nearly nine out of 10 Brits have always told the truth when completing an insurance application form, according to research by Friends Provident (LSE: FP.L - news) .
At the opposite end of the scale, one in five people would not read all
the terms and conditions on a policy before they signed up.
But for those who choose to be dishonest when applying for insurance they may come unstuck as over half of people surveyed thought if these people then claimed they should not be paid any benefits.
Of those who thought they should be permitted some payment of their claim, only 8% felt they should be entitled to a full payment, with 15% saying how much they should get depends on the type of information not disclosed.
When it comes to buying life insurance just under half would do their research on the internet and through the media and more would ask a financial adviser (20%) for advice than their friends and family (15%).
If people had a fiver each month that they had to spend on insurance 28% would choose life insurance followed by 17% who would choose income protection. If they didnt have to spend it on insurance nearly a third would spend it on food.
Mark Jones, protection products and actuarial manager at Friends Provident, said: Its good to see that many people recognise the importance of advice when buying insurance, and that they take the time to answer all questions truthfully when applying for insurance.
The insurance business is here to provide peace of mind and is not just about collecting premiums and paying valid claims. It is important that people read the terms and conditions before they sign up.
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