The Pandemic Hugely Impacted on the Amount of Group Life Insurance Claims
Business Life Insurance is one of those overlooked employee benefits, but one of the most cost-effective to provide to staff.
Employers wishing to offer financial protection to the dependants of their employees if the worst should happen have seen exactly what this particular Employee Benefit is designed for, albeit in the most difficult and challenging way.
According to GRiD (Group Risk Development) so far this year, 475 lump-sum death benefit claims have been recorded, where COVID-19 was listed as the primary or secondary cause of death on either the death certificate or claim form.
The average lump sum benefit paid to dependants was £110,285.
But whilst these figures feel stark, it’s important to retain some perspective of the broader picture, which continues to develop.
In 2019, there were a total of 9,311 Group Life claims with a value that totalled circa £1.171 billion, the average claim size being £125,762.
Whilst these latest figures remind us of the devastating effects the pandemic has caused, the more genuine insight will likely come in early next year, when 2019 and 2020 claims figures can be directly compared.
