Bereaved families in the UK who have lost a loved one to covid-19 have encashed £90m ($115.7m, €98.6m) in life policies, data from the Association of British Insurers (ABI) shows.
That is the equivalent of £980,000 a day during the pandemic’s peak.
As many as 7,000 life insurance claims were filed between 1 March and 31 May 2020, of which 6,689 were made under individual protection policies and 351 under group schemes.
The latter figure also includes a small number of critical illness and total permanent disability claims, the ABI said.
Most of the claims (83%) have been paid so far, and all of the 7,000 have been accepted by providers.
The ABI expects the average payout on group policies to be around £137,000, whereas it estimates approximately £63,000 for term insurance.
Protect yourself and your family
Roshani Hill, the ABI’s assistant director and head of protection and health, 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.”
