Serious Money, Serious Illness
£1.1bn was paid in critical illness claims, an average claim of £61,677 to the 17,854 people who had a policy and claimed on it last year. Critical Illness provides a lump sum upon diagnosis of a serious illness such as cancer, heart attack or a stroke (and other serious illnesses).
Income Protection paid out £478m in claims to 92.71% successful claimants, each receiving an average of £17,087 as income.
This reminds me of the National Lottery, which most players are unlikely to ever win anything significant – or life changing. The chance of doing so is far higher (as in far less likely) than that of death or having a serious illness. So pause for a moment, reflect that these people and employers had cover, which means that the claimants were not as reliant upon the State or charity as they might otherwise have been.
These figures were released by the ABI (Association of British Insurers and Group Risk Development (GRiD) on 9 June 2016. Lee Lovett, Chairman of GRiD commented that:
“Despite this, the major challenge for our industry is that a material proportion of the working population have no (or insufficient) cover and GRiD’s focus is on improving awareness and ultimately increasing the number of lives that have access to cover via their employer.”
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