Scared your life insurance policy won't pay out?

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Why would a life insurance policy not pay out?

Firstly, it is very rare that a life insurance provider will not pay out on a policy, in fact 98% of policies pay out. In the exceptional circumstances that they do not pay out, the fault most often lies, not with the provider, but with the policy holder – you.

This is because people are tempted to lie on their application in order to get cheaper premiums. For example, social smokers don’t like to mention the occasional cigarette and people with minor medical conditions keep them quiet.

In the long run this will only cost you when your loved ones or yourself are left without any financial support when you need to claim on your cover. So tell the truth, always.

There is one clear cut way to mitigate the risk of a provider not paying out due to discrepancies on an application and that is to use a broker.

Non-advised policies like those purchased through comparison sites – in which the consumer is responsible for buying an appropriate insurance product – hold all the risk.

Why use a broker?

A life insurance broker is an industry expert. They are trained and experienced in the world of all things relating to life insurance. They know which provider is rolling out a mega saver policy, who to avoid and who can specialise. Brokers are experts in the market and most will have a wealth of experience finding the most suitable policies for thousands of customers.

So although you may understand the difference between an indexed decreasing term policy and a level term policy in trust – you probably won’t know which insurance providers offer the best policy for your particular needs.

A broker could be a good idea if you want to purchase insurance for something highly unique (i.e. yourself) or in an area you don’t know much about and can often find you better cover for less cost.

Insurance broker Vs comparison sites

A comparison site can be a great starting point for evaluating the market. They can give you a feel for price ranges, what the average cost should be and the main providers for what you need.

But the policies they offer are often fairly generic and are accompanied by a disclaimer that says assumptions are made about you. The problem with assumptions is that they group individuals together into common categories and therefore your personal requirements may be overlooked. Not only this, the onus for mistakes lies with you and if you choose cover that is not accurate for the information provided, then your policy might not pay out.

An insurance broker mitigates all the risk to themselves or the company they work for. They take on the responsibility of providing you with sound advice when choosing your policy. Should something be mis-sold or not be suitable, you are not the one at fault.

The advantages of using a life insurance broker

• It does not cost you more – the expert guidance that you receive is paid for by commission via the life insurance provider to the broker. There are no upfront fees to use a broker’s service and they should often be able to save you money in the long run by finding you better cover for smaller monthly premiums.

• Brokers can help you understand the products available- and will take the time to explain each one. A comparison site or going straight to the provider may not review all cover types with you.

• If you need specialist cover- like life insurance for type 2 diabetes, then a broker will often have superior knowledge of these types of policies and where to find them.

• A broker will do all the admin work for you- If you call a life insurance broker over the phone then you will of course have to answer questions relating to your health and lifestyle, but a broker will be the one doing the work and submitting the applications.

 Quick Quote Protect

Quick Quote Protect employ highly experienced and professionally trained insurance brokers. Our advisors are onhand to listen to your requirements and specific cover requests. Our insurance brokers have helped thousands to find the best deals at the most competative prices. We utilise our industry expertise with customer facing experience to help deliver only the best life insurance advice. We understand life insurance can be a difficult topic to understand but we can explain and review all of the cover types available and can answer any questions you may have relating to life insurance. Quick Quote Protect are a leading UK life insurance broker and are ready to find you the best cover.

Call us on our Freephone number for any questions relating to life insurance and see what we can do for you.