The ABI (Association of British Insurers - a UK-based trade body representing over 200 insurance companies) has recently stated that according to the latest estimates, ABI members expect to pay up to £2.5 billion for COVID-19 insurance claims incurred in 2020.
Of this, £204 million paid from COVID-19 related protection insurance claims, including life, critical illness, and income protection insurance claims.
“The COVID-19 pandemic is unprecedented in its impact and will be one of the biggest insured events of recent times. These latest estimates demonstrate the range of support ABI members expect to offer their customers as a result of COVID-19 related claims across a wide range of insurance policies. This data was collected from individual firms by the ABI in mid-late January, and millions of pounds continue to be paid out every week in claims settlements.”
The Association of British Insurers (ABI)The Association of British Insurers (ABI)
The pandemic has certainly made us all more acutely aware of our own mortality than ever before and shown how vulnerable we all are. This led to a steep rise in applications for Life Insurance in 2020 and the trend continues with more families exploring the benefits that a policy can provide.
This is especially true amongst younger people, who may have never previously considered the need or benefits of having life insurance in place. The good news is, if you’re looking for a Life Insurance policy, there’s never been a better time with all the options available.
Despite this surge of interest, according to recent surveys, many UK consumers are still more likely to prioritise savings over life or health insurance to protect their finances. This ought to not be the case though, as according to the latest figures published by the ABI, in 2019, 98.3% of protection claims were paid out. Despite this, many consumers still believe they’d be better protected with savings, regardless of the fact that in many cases, it wouldn’t be anywhere near what would be required to cover the costs of critical illness or death.
Nobody knows what the future holds, but everyone knows what and who is important to them.
A lack of understanding (and effective communication) of the benefits of life insurance could also be to blame for this, as it can be overwhelming for consumers who are unsure about what type of policy they’re looking for, whilst wading through industry jargon.
Everyone appreciates how having savings works, whereas not everyone understands what a ‘decreasing-term policy’ is.
‘Term’ life insurance policies run for a fixed period of time (known as the ‘term’ of your policy) eg. 10, 15 or 25 years - but only pay out if you were to die during the term of the policy. There’s no lump sum payable if you live beyond the term.
These policies can be taken out as Single or Joint policies, which are similar, but with a few key differences:
Having savings as extra protection is also a good idea, as is working towards paying off whatever existing debts you may have, however it shouldn’t be considered a substitute for having a life insurance policy in place.
Get An Online Quote Now
Once you’ve given this information some thought, it’s then really easy to arrange and compare online life insurance. Simply enter your details into our site and we’ll ask some questions to generate quotes so you’ll be able to see what policy works out best for you.
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If you don’t currently have any cover in place or if you’re not sure that it still meets your needs - the team at Cavendish can help. Go online to get a quote or simply call us now on the number below...