Insurers have paid out £202m in 2020 Covid-19 death claims which is equivalent to just over £550,000 a day, according to the latest figures from The Association of British Insurers (ABI).
The figures highlighted that in 2020, 11,198 claims were received under individual and group life insurance policies. Of these, 10,205 were individual policies (whole life, term insurance and critical illness claims) with 993 on group life insurance schemes.
The vast majority of these claims (96%) were for individuals and 99% for groups. Of the total £202m paid, £128m relates to individual policies, with £73m paid under group schemes.
In addition, £2.4m has so far been paid from 968 claims made under individual and group income protection insurance, helping those who suffer a loss of income due to Covid-19 related illness.
The ABI recalled that one of the larger death claims of £1m was paid out to a dependant last year, whilst a similarly large £250,000 claim was paid out by insurers the day after the notification of death was received.
Yvonne Braun, director of long-term savings and protection, ABI, said: “No one will have been affected by the pandemic more than the families of those who have tragically died due to Covid.
“While no amount of money can ever replace a life, insurers have and continue to do everything they possibly can to help families cope financially through these distressing and worrying times.”