The equivalent of £980,000 a day was paid in death claims at the peak of the pandemic, according to the latest data from the Association of British Insurers (ABI).
The figures collected by the ABI highlight that between 1 March and 31 May this year, 6,689 claims were received under individual protection policies, with 351 claims under group schemes, including a small number of critical illness and total permanent disability claims.
These figures equate to 77 claims worth £980,000 every day during the period during the period in which the data was collected, equating to £90m.
Of these claims, 83% have been paid so far, and every life insurance claim has so far been accepted.
The average payout on term insurance is expected to be £63,000, with an average payout of £137,000 on group policies
Roshani Hill, assistant director, head of protection and health at ABI, 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.”
She added: “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 fund has already seen £83.9m pledged in voluntary contributions from firms across the sector.
The initiative works in partnership with the Charities Aid Foundation, and a network of partners, including the National Emergencies Trust and Business In the Community. The key aim is to provide immediate relief to charities affected by Covid-19, as well as a longer-term programme of support for people, communities, and issues where there is the greatest need.