Life Insurance Payouts to Speed Up

Life Insurance Payouts to Speed Up.

In order to speed up the time it takes to process claims for life insurance, the Association of British Insurers (ABI) has issued recommendations with the Law Commission.

It is now suggested that the claimant supplies the insurer with documentation to prove that they are the main beneficiary for example birth and/or marriage certificates and Mortgage Deeds.  Should the legal process find that the claimant is not entitled to the financial benefit then it will be the responsibility of the claimant to reimburse the insurers.

The new guidance could reduce the timescale for insurance payouts to just a month in normal cases, where previously it may have taken as long as 73 days.  In more complex cases or where the death of an insured is deemed suspicious, the time scale would be much longer.