Bily Liar: Brits lying on insurance forms
1 in 20 lie on insurance forms
Thursday, 24 Jan 2008 14:07
One in 20 Brits admits to lying on insurance application forms, according to new research.
A study by Friends Provident shows 90 per cent of people say they always tell the truth when completing an application form for insurance – but five per cent do not.
Some 54 per cent of people said those who lie – as opposed to failing to disclose information wittingly or unwittingly – should not be paid any benefits.
Friends Provident also asked people what insurance they would buy if given £5 a month.
Twenty-eight per cent of people would buy life insurance, while 17 per cent would opt for income protection.
However, if given the choice of any item, a third of people would buy food.
When buying life insurance, just under half of people would do research on the internet, 20 per cent would turn to a financial advisor, and 15 per cent would ask their family.
Mark Jones, protection products and actuarial manager at Friends Provident, said: "It's good to see many people recognise the importance of advice when buying insurance, and they take the time to answer all 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."
The poll also showed a fifth of people do not read the full terms and conditions on a policy when buying insurance.
"It's important people read the terms and conditions before they sign up," concluded Mr Jones.