At the height of the pandemic, insurers received 7,000 life insurance claims and paid out £90 million – the equivalent of £980,000 every day – to support the families of those who died due to COVID-19. The data from the Association of British Insurers (ABI) shows that between 1 March and 31 May last year, 6,689 claims were received under individual financial protection policies, with 351 claims under group schemes (including a small number of critical illness and permanent disability claims). The figures equate to an average of 77 claims per day.
Life insurance claims accepted
The vast majority of these claims (83%) had been paid by early August, and every life insurance claim had been accepted. The average payout for term insurance is expected to be £63,000, while the average group payout is £137,000. ABI’s Assistant Director, Head of Protection and Health, Roshani Hill, said, “While no amount of money can ever replace a life, insurers have been doing all that they can to help families cope financially through these unprecedented and distressing times.”
The importance of financial protection
The figures emphasise the importance of having the right cover in place. No one knows what’s around the corner, so if you’d like advice and support to ensure your family is properly protected in 2021, please do get in touch.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
