At the time of writing this post, Wales have completed their “fire Break” Lockdown. Scotland are using a tiered approach and England is in its second Lockdown. In today’s post we take a look at some of the data relating to Life Insurance Claims directly caused by Covid19 in the first nationwide lockdown.
From a standing start the world have innovated and invented new ways to help local communities and the wider population. Which range from new and repurposed medical treatments to potential long term vaccines in the pipeline.
Although many are hailing the importance of these discoveries, it has come due to a global tragedy with the loss of many lives in the UK and worldwide. Currently the loss of life globally stands at approximately 1.3 million lives lost. Many of which had been lost in the first wave of Covid19. Many countries are now beginning to face a second wave of infection or daily increases of their first wave.
Today we look at:
Life Insurance Claims Caused By Covid19
The ABI (Association of British Insurers) has released early data for claims received and successful claim payments made to families and loved ones. This data is usually released once a year to provide transparent information about claims made on Life Insurance, Critical Illness, Income Protection and many other types of Insurance.
During the peak of the first wave of Covid19, insurers paid the equivalent of £980,000 a day.
Insurers received 7,000 Life Insurance claims, and paid £90 million in total, which is the equivalent of £980,000 every day. Helping to support the families and loved ones of people. Who tragically passed away due to Covid19 during the height of the first wave. These figures were collected and collated by the ABI with information provided by Life Insurance providers.
Life Insurance Covid19 Claims Data
The ABI also did further analysis of the date and highlighted that between 1 March and 31 May this year:
6,689 claims had been made on individual Life Insurance protection policies. With 351 claims under group schemes (which also includes a small number of critical illness and total permanent disability claims), with a current total of £90 million paid. These figures equate to 77 claims worth £980,000 every day. During the time period in which the data was collected.
The ABI has also been informed that the vast majority of Life Insurance, Critical Illness and Total Permanent Disability claims caused by Covid19 totalling 83% – have been paid so far. A key point to note is that these figures show that every Life Insurance Claim caused by Covid19. Has so far been accepted and processed.
The average claim payment on a Term Based Life Insurance policy is expected to be £63,000. With an average claim payment of £137,000 on group policies.
Helping Families & Loved Ones
Roshani Hill, the ABI’s Assistant Director, Head of Protection and Health went a step further;
Every Covid19 death is a tragedy. 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.
We know that Coronavirus has long-lasting impacts, and protection insurers will continue to support families hit by this tragedy. No one knows what is round the corner. Which is why protecting yourself and your family against the worst is vitally important.”
UK Insurers, Savings Industry Help Charities
The UK Insurance and long-term savings industry is also supporting many charities. Helping some of the people hardest hit by the Covid19 crisis. The Covid-19 Support Fund, launched in May. It has already seen £83.9 million been pledged in voluntary contributions from firms across the Insurance and savings sector.
The Fund works in partnership with the Charities Aid Foundation. As well as a network of partners, which includes the National Emergencies Trust and Business In the Community. The key aim is to provide immediate relief to charities impacted by Covid19. There is also a longer-term programme of support for people, communities, and issues where there is the greatest need, including:
- Community based charities that are under unprecedented strain
- Charities supporting the most vulnerable – in particular, families and children living in poverty and older people in isolation
- Initiatives to promote wellbeing and mental health across society
These innovations will continue to provide stability for the wider community in the UK. After the Covid19 pandemic and subsequent treatments/vaccinations.
Although we remain hopeful for the coming months and the successful role out of the vaccination programme. At Life Insurance Cover, we ask our visitors to look after themselves, families and wider communities during the winter months. With therapeutics and vaccines helping to treat those with Covid19. Our hope is that the second wave will not be as devastating as the first.