44% Of People Think Insurers Have Paid Less Than 50% Of Covid Related Life Insurance Claims

Did you know that you’re SIX times more likely to pass away before retirement than you probably think. Morbid we know, but it gets you thinking doesn’t it. What would happen to your loved ones should the worst happen? How would they cope financially? Would they cope financially?

Life Insurance is one way of putting this worry to bed. However despite this, people still choose not to protect their life, even after being faced with a global pandemic. But why?

Working UK Adults Don’t Believe Majority Of COVID Related Life Insurance Claims Are Being Paid

Drewberry’s 2021 Pandemic Health & Protection Survey of 1,000 working adults found that 44% of Brits believe that insurers have paid out less than 50% of Covid related Life Insurance claims. This could go some way to explaining why people are reluctant to put cover in place.

The results are surprising when in fact the reality is somewhat different.

According to the latest figures from the ABI, in 2020 insurers paid out 96% of personal Life Insurance claims and 99% of group claims for COVID-19 deaths, totalling £202 million.

As an industry there is a lot more we need to be doing to build trust and celebrate the good work we do.

Misconceptions Surrounding Insurers

It appears that there is still a big misconception that insurers don’t payout, and even though more people are thinking about their financial stability, putting protection such as Life and Income Protection Insurance in place, isn’t at the top of the to do list.

• 60% of respondents agreed that the pandemic has made them think more about their financial stability
• 63% of respondents said that they had been able to save more during the pandemic, 59% of which said they were saving so they had a safety net for a rainy day

Do Insurers Really Pay Out?

The reality is that insures do pay out claims. According to the Association of British Insurers (ABI) insurers paid £202 million in individual and group life claims for COVID-19 alone.

Out of the 10,205 individual life claims made due to COVID-19, 96% were paid out (totalling £128 million). Payout rates were high for group policies too, with insurers paying 99% of 993 coronavirus claims worth £73 million in total.

This is the equivalent of £553,000 a day going to support the families and loved ones of those who have lost their life to Covid-19.

Why Would I Need Life Insurance?

Life Insurance isn’t for everyone, however for those who do have children or a mortgage it can provide all important peace of mind, knowing that if the worst should happen your loved ones would be financially secure.

It’s not just death that Life Insurance will payout for either. Some insurers will provide cover for:

• Terminal Illness
  Many life insurance plans will pay out early if you are diagnosed with less than 12 months to live.
• Critical Illness
  Provides protection against the risk of a serious illnesses such as heart attack, cancer and stroke. Plans cover anywhere between 5-100+ illnesses, so read your policy’s terms carefully.

A Lot More To Just Core Cover…

Life insurance today isn’t just about a piece of paper in a drawer, it can offer real tangible benefits over and above just the core cover it provides.

Many insurers offer ‘free’ additional benefits alongside their policies which you and your family can take advantage of. These are designed to help you to lead a healthier and happier lifestyle through services such as: