According to statistics from the Equity Release Council, Equity Release sales in 2015 hit a record high of £1.71 billion. So why is this market growing 29% year on year and is this really the best option for homeowners seeking a lump sum or monthly income ?
Recent cost of dying statistics have shown that the average funeral has risen to an all time high with no sign of a significant slow down.
- The rising cost of dying: Average funeral now costs £7,600 and thousands are struggling to afford a fitting send off.
- Study claims cost of funeral, burial and administration is up 7.1%
- Estimated that 100,000 people will struggle to pay for funeral this year
- Rose 80% between 2004 and 2013 and will continue to increase
This week Aviva launched it’s latest Relevant Life Plan which can now cover Life and Critical Illness.
A survey from British Friendly has show that only 2% of self-employed people surveyed believed Income Protection policies paid out 90% of the time and 45% believed that the main reasons claims were declined was insurers deliberately trying not to pay. This is despite the industry average for accepted Income Protection claims exceeding 90%.
Legal and General announced today that in 2014 they paid out £520 million in individual protection claims. Not only is that £14.5 million more than in 2013, but an average of £1.4 million paid out to customers every single day.
Swiss Re have announced a 4.1% increase in the overall number of protection policies in 2014. Their report, looking at figures across the industry, found that 1,667,818 new term life assurance, whole of life insurance, critical illness and income protection policies were sold.
The FCA today finally announced plans to ban opt-out add-on sales on insurance products.
Opt-out add on sales is the process of automatically including an additional product for which they need to un-tick a box in order to opt-out and not buy the product.
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