Latest news with #insuranceindustry
South China Morning Post
23-05-2025
- Health
- South China Morning Post
Korean mum probed for ignoring fatally ill son, buying US$144,000 life insurance in his name
A heartless Korean mother has sparked outrage online after it was revealed that instead of seeking medical help for her severely ill son took out a 200 million won (US$144,000) life insurance policy in his name. Advertisement On May 17, the Gyeonggi Bukbu Provincial Police Agency reported that on the night of September 20, last year, a man in his 30s from Uijeongbu, Gyeonggi province, in northwestern South Korea, began vomiting large amounts of blood due to chronic liver disease. Details about the man's family background and the underlying cause of his condition remain undisclosed. Despite losing nearly three litres of blood and an emergency station being just a seven-minute drive from their home, his mother, who is in her 60s and reportedly works in the insurance industry, chose not to call an ambulance or seek any medical help. Instead, she allegedly took out a life insurance policy worth 200 million won in her son's name. The sick man died in a hospital ward after his condition deteriorated to the extent that his heart could not pump enough blood to his body. Photo: Shutterstock The man was eventually taken to hospital by a friend the next day, 25 hours after the incident.
Telegraph
20-05-2025
- Business
- Telegraph
Is life insurance worth your money?
Life insurance can cost as little as a few pounds a month, which seems a small amount in return for a guaranteed payout for your loved ones when you die. If you pass away within a few years of taking out life cover, then the policy will likely pay out more than you paid in the first place. However, the reverse is true, too: if you live a long life, you could end up paying more than your family will ever receive. But millions of people taking on these odds has given rise to an industry that is now worth more than £65bn. So, is it really worth the money? Not all life cover policies are made equal – and making sure you have one that is well suited to your family, your age and your health is what ultimately determines whether it is worth the cost. Here, Telegraph Money breaks down the different types of life cover and how to tell which policy might be suited for you and your beneficiaries' needs. Who needs life insurance, and what is it? How does life insurance work? Whole of life cover versus fixed term assurance Other types of life insurance policies Should you get multiple life insurance policies? How does a beneficiary make a claim? What happens if I don't have life insurance? Who needs life insurance, and what is it? If you have financial dependents, or have debts including a mortgage, then it is worth considering a life insurance policy, regardless of your age or whether you have any medical issues. Dependents in this case could include a spouse, children or other relatives. The cost of your life cover will depend on a range of factors, but primarily these will be your age, your health and how large you would like the payout to be in the event of your death. Generally, policies become more expensive as you age, and if you are unwell. A life insurance payout could help your family pay for childcare and sustain their lifestyle after your earnings are taken out of the equation. If you are low on cash savings, they could also be a way to pay towards your funeral costs. How does life insurance work? If you take out a life insurance policy, you'll pay a monthly premium that will cover a payout in the event of your death. Depending on the type of policy you choose, these payments may be made indefinitely, or if the insurance is specifically to cover future mortgage payments, for example, the payments and policy will end when your mortgage has been paid off. Whole of life cover versus fixed term assurance There are two main types of life cover – these are 'whole of life', and 'term life'. We outline some of the main differences below: Term life insurance is typically cheaper. This is because a term policy only insures you for a fixed period – for example, 10 or 20 years. You might go for a 'level term' payout, where the lump sum stays the same throughout the life of your policy, which can give extra peace for mind for your family. There's also a 'decreasing term', which means the payout amount will decrease over the course of the policy. The policy will usually end when the payout decreases to zero. It's usually used to pay off debt, such as a mortgage or a large loan, and it should decrease at the same rate as your mortgage debt. 'Increasing term' insurance has a payout that grows over time – it will either grow by the same amount each year, or it may be linked to inflation (often the Retail Price Index). If you're not sure what kind of sum to look for, a general rule of thumb is to look for a payout that is worth 10 times the salary of the highest earner in the household. Whole of life cover is designed to pay out to your family whenever you die. These policies come at a higher price, and are mostly designed for older people. They also tend to be 'guaranteed acceptance', meaning that the payout will go through as long as you keep up with your premium payments. For example, if a 65-year-old man with a standard life expectancy of another 20 years applies for a guaranteed acceptance life cover for £100,000, then the average quote is around £240 a month, according to the wealth manager Evelyn Partners. That would cost around £57,600 over the course of his lifetime. If the same person applied for a cover that did not guarantee acceptance, and instead was medically underwritten – meaning it involves health checks or medicals – it would cost around £200 a month, approximately £48,000 over their lifetime, and still pay out £100,000. Natasha Etherton, of Evelyn Partners, added that relatives of elderly people should be careful about cancelling these policies, especially as they can make up an important part of inheritance tax planning. 'If you happen to take over your mum or dad's finances using a Power of Attorney don't immediately cancel what appears to be expensive life insurance,' she said. 'Look into it first and seek advice, as this may be a further part of your inheritance or may have added benefits attached – such as early payout for long-term care.' Other types of life insurance policies There are several types of life insurance – click through to our dedicated guide which explains them all. These include: Joint life insurance Universal life insurance Over-50s life insurance Critical illness cover. Should you get multiple life insurance policies? There's no legal limit on the number of life insurance policies you can take out, and you might want different policies to cover specific things like your mortgage, and another for more general cover. However, you will end up paying more in premiums, and it might be that one policy can cover everything – just make sure you're aware of what's in the small print, and talk to your provider to make sure the policy covers what you want it to. How does a beneficiary make a claim? If you are a beneficiary of a life insurance policy, the first step is to contact the insurance company as soon as you are able. You will need to provide them with the original or certified copy of the policy holder's death certificate in order for the insurer to begin the claim process. It should take 30 days after they have received all the necessary documents. What happens if I don't have life insurance? There is no requirement to get life insurance. If you don't have one, there will be no payout when you die, but you can still leave money and other things to your heirs from your estate – but they'll have to wait until probate has been completed for your assets to be released.
The Independent
20-05-2025
- Business
- The Independent
Expert reveals home insurance mistake that can cost you hundreds of pounds
Home insurance customers are being warned to look beyond the headline price and scrutinise excess levels, as some could face hefty contributions towards claims, potentially reaching hundreds of pounds. Analysis by financial information firm Defaqto has revealed a creeping rise in excess levels on some home insurance policies in recent years. The excess, the portion a customer pays towards a claim, can sometimes negate the value of making a claim, especially for lower-value incidents. Defaqto 's findings highlight a significant shift in the market. In 2019, only 2 per cent of buildings insurance policies had a standard excess ranging from £251 to £400. By April 2025, this figure had jumped to 13 per cent. Conversely, the most prevalent excess band, £51 to £100, has seen a decline in popularity, dropping from 60 per cent of available deals in 2019 to 45 per cent currently. This trend underscores the importance of carefully reviewing policy details before committing to a home insurance product. Defaqto said it had also found several products implementing a standard excess of more than £400. It also found that the proportion of policies that allow the standard excess to be reduced to £50 or less, in return for paying an increased premium, has fallen from 25 per cent in 2019 to just 11 per cent. Many buildings insurance policies also specify an excess of more than £400 for escape of water claims, researchers said. Contents insurance products are following a similar pattern, Defaqto found. The proportion of policies on the market with a standard excess of £25 to £400 has risen to 11 per cent, up from 1 per cent in 2019, while the proportion of those offering a £51 to £100 excess has fallen from 59 per cent to 46 per cent. Angela Pilley, a home insurance expert at Defaqto, said: 'While many people focus on the premium when choosing insurance, it's just as important to consider the excess. 'In the event of a claim, this is the amount you'll need to pay towards the cost, and in some cases high excesses can make it uneconomical to claim at all. 'If your excess is £400 and your claim is only £500, it may not be worth pursuing. 'Checking the fine print is essential to make sure your policy offers real value.' A spokesperson for the Association of British Insurers (ABI) said: 'Home insurance continues to provide a vital safety net should the worst happen, with insurers paying out a record £886 million for damage to people's homes and possessions in the first three months of the year. 'A number of factors, such as inflation, can lead to insurers re-evaluating excesses in the policies they offer, and some people may choose a policy with a higher excess to manage the cost of cover. 'We would always recommend shopping around to find a policy that truly meets your needs and don't base the decision on price alone. As always, carefully review your policy documents to fully understand the terms, conditions, and any exclusions.' Four key tips from Defaqto for choosing home insurance include: Check the excess on both buildings and contents insurance – do not assume they are low. Look out for specific claim excesses, such as for water damage or accidental damage. Compare policies carefully and consider whether a slightly higher premium with a lower excess may offer better value. Consider whether you could afford to pay a high excess if the unexpected happened.
The Independent
19-05-2025
- Business
- The Independent
Financial expert reveals the costly mistake people make with home insurance
Home insurance customers are being warned to look beyond the headline price and scrutinise excess levels, as some could face hefty contributions towards claims, potentially reaching hundreds of pounds. Analysis by financial information firm Defaqto has revealed a creeping rise in excess levels on some home insurance policies in recent years. The excess, the portion a customer pays towards a claim, can sometimes negate the value of making a claim, especially for lower-value incidents. Defaqto 's findings highlight a significant shift in the market. In 2019, only 2 per cent of buildings insurance policies had a standard excess ranging from £251 to £400. By April 2025, this figure had jumped to 13 per cent. Conversely, the most prevalent excess band, £51 to £100, has seen a decline in popularity, dropping from 60 per cent of available deals in 2019 to 45 per cent currently. This trend underscores the importance of carefully reviewing policy details before committing to a home insurance product. Defaqto said it had also found several products implementing a standard excess of more than £400. It also found that the proportion of policies that allow the standard excess to be reduced to £50 or less, in return for paying an increased premium, has fallen from 25 per cent in 2019 to just 11 per cent. Many buildings insurance policies also specify an excess of more than £400 for escape of water claims, researchers said. Contents insurance products are following a similar pattern, Defaqto found. The proportion of policies on the market with a standard excess of £25 to £400 has risen to 11 per cent, up from 1 per cent in 2019, while the proportion of those offering a £51 to £100 excess has fallen from 59 per cent to 46 per cent. Angela Pilley, a home insurance expert at Defaqto, said: 'While many people focus on the premium when choosing insurance, it's just as important to consider the excess. 'In the event of a claim, this is the amount you'll need to pay towards the cost, and in some cases high excesses can make it uneconomical to claim at all. 'If your excess is £400 and your claim is only £500, it may not be worth pursuing. 'Checking the fine print is essential to make sure your policy offers real value.' A spokesperson for the Association of British Insurers (ABI) said: 'Home insurance continues to provide a vital safety net should the worst happen, with insurers paying out a record £886 million for damage to people's homes and possessions in the first three months of the year. 'A number of factors, such as inflation, can lead to insurers re-evaluating excesses in the policies they offer, and some people may choose a policy with a higher excess to manage the cost of cover. 'We would always recommend shopping around to find a policy that truly meets your needs and don't base the decision on price alone. As always, carefully review your policy documents to fully understand the terms, conditions, and any exclusions.' Four key tips from Defaqto for choosing home insurance include: Check the excess on both buildings and contents insurance – do not assume they are low. Look out for specific claim excesses, such as for water damage or accidental damage. Compare policies carefully and consider whether a slightly higher premium with a lower excess may offer better value. Consider whether you could afford to pay a high excess if the unexpected happened.
