Insurers paid almost £1m a day to support families of Covid victims at peak of pandemic
Insurers paid a total of £90m during the height of the Covid-19 crisis to support the families of people who died due to the virus.
Around 7,000 life insurance claims were received between 1 March and 31 May, the Association of British Insurers (ABI) said, equating to around £980,000 of claims being paid out every day.
The ABI said the average payout on term insurance is expected to be £63,000, with £137,000 on group policies.
Term life insurance provides a payout to families when people die within a time period set out by the policy. Group life insurance covers a group of people, for example employees within a company.
Some 83 per cent of claims have been paid out so far, the ABI said. It added that every life insurance claim captured in its figures between 1 March and 31 May has been accepted.
Roshani Hill, the ABI’s assistant director, said: “Every Covid-19 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.”
The UK insurance and long-term savings industry is also supporting charities that are helping some of the people hardest hit by the crisis.
Launched in May, the Covid-19 support fund has helped to generate £83.9m of pledges in voluntary contributions from firms.
The fund works in partnership with the Charities Aid Foundation, and a network including the National Emergencies Trust and Business in the Community.
It helps community-based charities and mental health initiatives, among others.
PA
