Survey reveals deliberate non-disclosure is rare
By Johanna Gornitzki
Nearly all policyholders tell the truth when completing insurance application forms, according to a recent study by Friends Provident.
The survey revealed only 5% of people lie when filling out a protection submission - showing the industry's fears of deliberate non-disclosure are largely unfounded.
For those who choose to be dishonest when applying for insurance over half of the people surveyed (54%) thought they should not be paid any benefits if they had to make a claim and only 8% felt they should be entitled to a full payment.
The provider asked the respondents what insurance they would buy if they had £5 a month to spend it on. The results showed that 28% said they would choose life insurance followed by 17% who would opt for income protection.
Mark Jones, protection products and actuarial manager at Friends Provident, said: "It's good to see people recognise the importance of advice when buying insurance, and that they take the time to answer questions truthfully when applying for insurance.
"The insurance business is here to provide peace of mind and is not just about collecting premiums and paying valid claims. It's important that people read the terms and conditions before they sign up," he added.
The research also found around half of the respondents would do their research on the internet or through media when buying life insurance, while only 20% would ask a financial adviser.
