Claims paid out under protection insurance totalled £6.8bn in 20211, 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 and the average critical illness claim payment was £67,500.
Last year, 98% of individual and group 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.
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Protection 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 millions of families given support when they needed it most.
1ABI and GRiD, 2022
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments