When advisers talk to their clients about protection, they often hear the same reason for not taking out a policy: ‘The insurer won’t pay out.’
It is a commonly-held belief that, even if your client needs to make a claim, they will not receive the money they have claimed for. Others think the claims process will be so complicated and long-winded that they will be put off making a claim in the first place.
Busting some myths
At Scottish Widows, we are making every effort to bust a few myths about the claims process so that advisers can ensure their clients have a more accurate picture of the payout they’ll receive. At the end of the day, we want your clients to feel they can trust the protection industry when they need us most.
By giving you some facts about our claims process, you can have better conversations with your clients. As advisers, you will feel better able to dispel any misconceptions and misunderstandings. Ultimately, this gives your client the best chance of making the right decision about protection plans.
Helen Dick, Senior Manager Underwriting and Claims Strategy at Scottish Widows, says: “We know that a major barrier to people taking out protection is the idea that claims are rarely successful.
“Our research showed that only 2 per cent of the UK public think between 91 to 100 per cent of all claims are paid out – the reality is that we paid out over 98 per cent of all claims [in 2019].”
In other words, that is 9,635 claims paid to your clients and their families last year*. [Source: Scottish Widows 2019 claims statistics]
We are proud of our strong claims paid record that spans more than 200 years.
But it is not just about the numbers. Our customers – your clients – are more than a number to us.
Often, when a client makes a claim it is during a time of heightened worry or stress, particularly if it is related to Critical Illness Cover. That is why we want to be there for you and your clients.
If one of your clients, or any of their family members, receives a diagnosis of cancer then they want to know that their protection plan will pay out. After all, one in two people in the UK will be diagnosed with cancer in their lifetime [Source: Cancer Research UK].
One of the ways we are there for our customers who are dealing with cancer – either they are going through treatment, or supporting a loved one who is – is through partnerships.
“Of all our Critical Illness claims, 63 per cent are for cancer and we are continuing to develop ways to support our customers through their cancer claim,” Helen explains.
“Our partnership with MacMillan Cancer Support has meant we have been able to introduce the addition of Macmillan Cancer Nurse Specialists to speed up obtaining medical evidence and considering cancer claimants for a £2,000 early payment to help with any initial costs.