Insurers paid out £202 million to support the families of people who died in 2020 due to coronavirus, the Association of British Insurers (ABI) said.
The total equates to £553,000 of payments being made every day last year.
Some 11,198 claims were received under individual and group life insurance policies.
Of the total £202 million paid, more than £128 million was for individual policies while more than £73 million was paid out under group life insurance schemes.
The average payout on individual policies was £13,100 and for group polices it was £74,600.
One particularly large death claim led to £1 million being paid to the deceased’s dependants.
Meanwhile, a claim for £250,000 was paid one day after the death notification was received.
Another claim, under a policy to cover mortgage payments, led to £91,000 being paid out within two days of notification.
The ABI said this is the first time it has compiled life insurance payouts arising from a single event in this way, reflecting the significance of the pandemic.
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 timesYvonne Braun, Association of British Insurers
Across all insurance products, including business interruption and travel insurance, ABI members expect to pay up to £2.5 billion for Covid-19 insurance claims incurred in 2020.
Yvonne Braun, the ABI’s director of long-term savings and protection, 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.”
The ABI added that the UK insurance and long-term savings industry is also helping support some of those hardest hit by the pandemic in other ways.
Launched in May 2020, the Covid-19 Support Fund has raised more than £100 million to help charities affected by Covid-19.
The ABI’s figures were released as insurer LV= said it has now paid more than 1,400 pandemic-related claims totalling £12.1 million.
The total covers life insurance, critical illness and income protection claims triggered by coronavirus.
LV= said that for Covid-19 death claims, the average age of those involved was 67.
Coronavirus was responsible for 42% of LV= death claims in January 2021 and the number of admitted death claims jumped by 40% compared with January 2020.
Debbie Kennedy, director of protection at LV= ,said: “The Covid-19 pandemic has been devastating. It is having a huge impact on people and we expect to see the effects on claims lasting for several years.”