Insurers helped a record number of families in 2014 with more than 350 payouts being made every day, according to figures published by the Association of British Insurers (ABI).
Nearly 128,500 customers or families received £3.44 billion in payouts during 2014, up from the £3.08 billion paid out to 98,900 customers in 2013.
This equates to an average £9.4 million in payouts to more than 350 customers each day during 2014.
The ABI data for 2014 shows that:
- income protection policies paid an average £10,000 and 92.9% of claimants received payouts
- the average payout for critical illness cover was £67,000 with 92% of claims being paid
- 98.7% of term life insurance claims were paid at an average £67,000
- 99.98% of whole life insurance claims were paid at an average £7,400.
James Dalton, director of protection policy at the ABI, said:
“At the most stressful times, insurance can make a real difference. These figures show that 97.7% of all types of protection policy claims are paid allowing people to focus on other challenges.
“However, many households still have no real financial safety net. Each year, 1 million workers suddenly find themselves unable to work for more than 4 weeks due to serious illness or injury. Insurance can play a role in improving families’ financial security, to help them after the loss of a loved one of support them if they are unable to work.”