People will get life insurance payments more quickly after bereavement, as the ABI has issued new guidance to insurers to cut the time it takes from four months to just four weeks. 32, 000 life insurance claims are made by families who have lost a loved one every year.
The new process is simple. The life insurer will ask the main beneficiary to complete a declaration where they agree to pay back any money they receive from the policy if the legal process decides they were not the rightful recipients.
Otto Thoresen of the ABI says, "Dealing with bereavement is hard enough, without the added stress of worrying about money. This new life insurance claims process means the time it takes on average to receive a payout will drop from four months to just four weeks. We believe that this will go some way to alleviating financial hardship for a deceased person's dependents, especially families on lower incomes who have few other assets available to rely on."