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£90m paid by insurers to help families cope with coronavirus deaths

The equivalent of £980,000 a day was paid in death claims when coronavirus was at its peak, the Association of British Insurers said.

Insurers paid a total of £90 million during the height of the coronavirus crisis to support the families of people who died due to the virus.

Around 7,000 life insurance claims were received between March 1 and May 31, the Association of British Insurers (ABI) said, equating to around £980,000 of claims being paid out every day.

The ABI said the average payout on term insurance is expected to be £63,000, with £137,000 on group policies.

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 timesRoshani Hill, ABI

Term life insurance provides a payout to families when people die within a time period set out by the policy. Group life insurance covers a group of people, for example employees within a company.

Some 83% of claims have been paid out so far, the ABI said. It added that every life insurance claim captured in its figures between March 1 and May 31 has been accepted.

Roshani Hill, the ABI’s assistant director, 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.

“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 UK insurance and long-term savings industry is also supporting charities that are helping some of the people hardest hit by the crisis.

Launched in May, the Covid-19 support fund has helped to generate £83.9 million of pledges in voluntary contributions from firms.

The fund works in partnership with the Charities Aid Foundation, and a network including the National Emergencies Trust and Business In the Community.

It helps community-based charities and mental health initiatives, among others.

More information about the fund is available at covid19support.org.uk.

PA