At the peak of the pandemic, insurers received nearly 7,000 life insurance claims and paid out £90m, which is equivalent to payments totalling £980,000 every day, paid out to support families of those dying from COVID-19.
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 protection policies and 351 claims were received under group schemes (including a small number of critical illness and permanent disability claims). On average, this equates to 77 claims per day.
The vast majority of these claims (83%) had been settled by early August and every life insurance claim made during this time was accepted. The average claim value paid on term insurance policies is expected to be £63,000, while the average payout on group policies is expected to be £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.”
Protection is important
The importance of having the right protection cover in place cannot be overstated, as evidenced by these figures on claims and payouts. None of us can predict the future, which is why it’s important to get advice and support to ensure your family is properly protected in 2021.
A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation. The value of investments and income from them may go down. You may not get back the original amount invested.