Five per cent of people have lied on protection applications and one in five people do not read all the terms and conditions before they sign up according to Friends Provident.Friends surveyed 2071 people and found 54 per cent believed dishonest applicants should not be paid any benefits if they needed to claim. Fifteen per cent said applicants who have lied should get a percentage of the full payment depending on the type of information they withheld.

The firm found that just under half of respondents researched life insurance on the internet and through the media but 20 per cent said they would ask a financial adviser for advice.

If people had a fiver each month that they had to spend on insurance 28 per cent would choose life insurance according to Friends and 17 per cent would choose income protection. But if they did not have to spend it on insurance nearly a third would spend it on food.

Protection products and actuarial manager at Friends Provident Mark Jones says:
“It’s good to see that many people recognise the importance of advice when buying insurance, and that 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. It’s important that people read the terms and conditions before they sign up.”