Bereavement Benefit Cuts Come into Effect
3rd April, 2017
Upcoming cuts to Widowed Bereavement Allowance (WPA) are being put under the spotlight, despite being estimated to save the Government £100 million a year. It is predicted that grieving parents will be about £12,000 worse off under the new Bereavement Support Payment.
From 6 April an overhaul of the allowance will mean that grieving parents, who would have previously been supported for up to 20 years, will now receive payments for just 18 months. The WPA has up to now acted as a safety net for grieving spouses.
This upcoming change has also highlighted the importance of building a comprehensive protection plan with an adviser, to cover worst case scenarios and help replace lost income. This will help ensure that in the event of death, the widower will be able to provide the support for their family, both financially and emotionally, at a time of grievance.
Improvements to services pay off for Aegon UK
Provider Aegon UK has released its latest claim statistics, revealing that a total of £123.4 million was paid in claims for life, critical illness and income protection in 2016. This represents a total of 1,300 families that have been helped. 98% of all life claims were paid out in 2016 to bereaved families and 95% of all critical illness claims.
Aegon UK have said that they have been able to help bereaved families more quickly due to steps taken over the last year to improve the efficiency of the claims process. This includes services, an increase in claims experience within the company and the use of electronic death certificates, greatly increasing the speed of claims..
AIG Life continue to support customers
An important 2016 for AIG Life has seen the total payment on claims for life and critical illness increase by nearly 50%, when compared to 2015. A total of £69 million was paid out to 1,000 families and business, with a claims success rate of 95% for life and 92.3% for critical illness.
AIG have made several key changes in the last year to increase the number of customers covered and improve awareness on the need for cover. This includes the introduction of Key3, a policy that only covers the 3 main causes of critical illness, as well as using fictional family ‘The Spencers’, to illustrate the importance of protection and how it works in real life scenarios.
To find out more about the importance of a good protection plan to cover your finances, get a quote online or talk to us today, so we can make sure you are getting the best deal for you.