Quite often we hear from people that their friend’s sister’s brother’s best mate tried to claim on their life insurance or critical illness and it wouldn’t pay out, so what’s the point?
Here’s the summary from the Aviva 2023 claims report which shows that 50,631 individual claims were paid, totalling £1.18 billion.
Since 2019, they’ve paid out on 97.8% of their individual protection claims received.
All other providers release their stats too, and if we are ever discussing your protection needs, whichever insurance provider we choose, we will speak to you about their claims statistics.
So this just goes to show that the myth that they don’t pay out is exactly that – just a myth!
What Can You Protect?
The three most common insurances are
- Life Insurance – Pays out a lump sum if you die
- Critical Illness Insurance – Pays out a lump sum on diagnosis of a specified critical illness
- Income Protection – pays out a regular income if you are unable to do your job due to medical reasons.
We would normally be advocates of a mix of all three. Life Insurance and Critical Illness can often be combined into one policy if that’s what works best for you.
You will always hate seeing the monthly premiums going out of your bank account, unless of course you need to claim on it, and then you’ll probably think it’s the best money you ever spent!
But let’s not celebrate too much….
It’s important to remember that behind these stats are people and their families. That’s over 50,000 people and families effected last year by illness or death who happened to have an insurance policy with one company.
It’s not something we should ever forget, so while it may feel like insurance companies proudly boast their claims records, don’t forget what it actually means.
And that while we all say “But it won’t happen to me…” I bet you those 50,000 other people thought the same too.
Accept the responsibility that your family needs you, and take action.
What price do you put on peace of mind for you and your family?
If we can help, please do get in touch.