One of the most common questions people ask, ‘’will the insurance company pay out ‘’? Part of my role in compliance allows me to monitor calls to ensure there is no reason an insurer wouldn’t pay out. When taking out any life protection policy it is important to be truthful about your personal circumstances, health conditions and to read the details including small print to ensure you know what is covered.
Figures released for 2020 show a total of £6.2 billion was paid out by the insurance industry for protection products such as life protection, whole of life, critical illness, total permanent disability and income protection.
In the year where ill-health was a worldwide concern due to the COVID-19 pandemic, we can feel confident that payout were made by looking at the figures below for 2020 payouts. Hopefully this will provide people with confidence and realise how vital this support can be to families who unfortunately face illness and death.
2020 protection Insurance Payouts
Product |
*Total value paid |
Critical illness |
£1.1 billion |
Life |
£3.4 billion |
Total permanent disability |
£28.1 million |
Whole of life |
£956 million |
Income protection |
£688.3 million |
*Payout numbers above were released by the Association of British Insurers (ABI) and Group Risk Development (GRiD)
Payouts for COVID-19 2020
According to the ABI, insurers paid out the equivalent of £553,000 every day in 2020 to support the families of coronavirus fatalities. A total of £202 million, of which included:
- £250,000 in payouts made the day after notification of death,
- £1 million worth of compensation for dependants.
- £128 million of the £202 million paid was for individual policies.
It was noted that 11,198 claims were received last year under individual and group life insurance policies. For individual policies, the trade body said 96% of the claims have already been paid; for group, 99%.
Meanwhile, the remaining valid claims are “being processed as quickly as possible,” added the ABI.
These figures are staggering and should hopefully help people gain some faith in family protection.
Avoiding the cover due to the fear that the insurer will not pay is heart breaking. So please do your research, come to Lizzie’s Life to find out information, prices or simply contact us and we can talk you through all the options.
Reference sites:
Insurancebusinessmag.com
The association of British insurers (ABI)