November 23, 2017

Market survey

Future Proof 2017 Market Survey Results

This year we asked our customers what their understanding of the claims process was, to assess perception outside of the insurance industry. We invited customers to answer a handful simple multiple choice questions and 941 people completed the survey. After analyzing the results, here are the highlights:

How long do you think on average it takes for a claim to be paid?

  • Just under half of our customers believe it will take 3-4 weeks for a life insurance claim to be paid – our claims database average shows 1-2 months.

How important would it be for you to have a dedicated claims adviser?

  • 91% believe it would be important or very important to have a dedicated claims adviser – Future Proof have a dedicated claims team – a personal point of contact from start to finish.

What information would be needed in order to make a claim?

  • Half of those who answered believed that a claim form and death certificate would suffice. If a policy has not been put in trust a Grant of Probate would also be needed.

How long do you think it would take on average for Probate to be granted?

  • 13% said that they did not know what Probate was – and why would you if you have never had to deal with a death before?
  • A third opted for 3-4 weeks, followed by a quarter opting for 2-3 months. According to legal websites, probate can vary but in general it can take 6-9 months or longer if no Will has been made.

The definition of probate is: the legal process for dealing with the estate of someone who has died. If there is no will (known as dying intestate) the process is more complicated. An application for a grant of letters of administration (the official document, issued by the court) will need to be made. Which will extend the claim process further.

A grant of probate is the official document which the executors may need to administer the estate.

This highlights how important it is for policies to be placed in Trust and avoid any delay in making a claim. Trusts are not regulated by the Financial Conduct Authority. The levels and bases of taxation, and reliefs from taxation, can change at any time. The value of any tax relief depends on individual circumstances.

Besides a quick pay out what would be the most important to you at the time of making a claim? Ranked 1 ( being the most important) to 4 (the least important)

The results were clear:

  1. An easy process with ideally no forms to complete
  2. Clarity of process – no jargon
  3. An efficient service
  4. A sympathetic adviser

Unfortunately, whilst forms will need to be completed our dedicated claims team are always on hand for guidance and support and help to demystify any jargon if needed.

Is your policy in Trust?

With an industry average of only 6% of policies held in Trust, we are happy that our customers have been listening to our ongoing messages of how important trusts are.

  • From the survey alone, the figures show a third of respondents believe their policies are held in trust. Our free Trustbuilder service, where Future Proof partially complete Trust forms on our clients behalf, means all they have to do is sign and have their signatures witnessed – simple! Saving the beneficiaries stress and time in the future.

What percentage of life insurance claims do you think are paid?

Despite the industries best intentions to publicise the high percentage of claims paid (98%).

  • Over half of our market survey respondents believe that fewer than 90% of claims are paid.

This could be derived from the impression that life insurance is on a par with buildings/ motor insurance which are different industries when it comes to the claims process? Or, could the length of time that it is perceived to make a claim  be promoting the wrong impression, that insurers do not like to pay out? Either way, Future Proof will continue to promote the positive message that claims ARE paid.

How to get hold of us

Whilst you are welcome to get a quote on-line we would strongly recommend you talk to one of our advisers. Your adviser will take into account your medical history – an on-line quote won’t. They will also will make sure any quote provided to you with is appropriate to your situation, as well as your budget!

Please call 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

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If you would like to know more about who we are, or how you will be dealt with, please feel free to read our Independent client reviews, or read about the team at Future Proof.

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For more information on claims statistics from the ABI please click here

For more information on probate please check The Law Society‘s web site.