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Does It Pay Out?

The acid test of any insurance policy is whether it pays out in the event of a claim. The public perception is that these types of policies only pay out around 50% of claims. While this is likely to be closer to the truth for the discredited PPI type policies, Income Protection policies pay out a much greater percentage of claims and the chart below shows that true Income Protection cover pays out around 9 in 10 claims overall. These figures also include policies not on an Own Occupation basis for most insurers, which will have a lower pay-out rate and negative impact on the overall figures.

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