Claims paid out under protection insurance totalled £6.8bn in 2021(1). A second consecutive yearly high, with more than £18.6m paid out every day in life insurance, income protection and critical illness claims.
Last year was the third year in a row where the overall average individual payout increased, rising by 9% year-on-year to reach £14,994. For term assurance, the average claim payment was £61,944. The average critical illness claim payment was £67,500.
Protection insurance claims do pay out
Last year, 98% of individual and group protection insurance claims were paid. However, ‘non-disclosure’ was cited as the main reason for the 2% of rejected claims. This is when a customer fails to provide information about something that might have influenced the insurer’s decision to provide cover or the price of that cover.
Ups and downs
One noteworthy trend in 2021 was a 40% rise in claims for musculoskeletal conditions. It is suggested this could be linked to the higher number of people working from home in unsuitable conditions. In contrast, there were 20% fewer claims relating to mental health last year, although mental health claims were still above their 2019 level.
More than a number
Protection insurance policies can help give you peace of mind by making sure you can meet financial commitments and knowing that your loved ones will not face hardship. Behind the headline facts are the huge number of families given support when they needed it most.
*1) ABI and GRiD, 202
Protect yourself, your family and your home
A life insurance policy will pay out a lump sum of money to your loved ones when you die or suffer a terminal illness. Read More…
Continue Reading Autumn Newsletter
