UK insurers have paid £90m to the families of people who have died due to COVID-19, according to new figures, which is equivalent to £980,000 every day.
The figures from the Association of British Insurers (ABI) show that 6,689 claims were made under individual protection policies between 1 March and 31 May, with 351 claims made under group schemes.
The vast majority of these claims – 83% - have been paid so far, with every life insurance claim having been accepted.
The average payout on term insurance is expected to be £63,000, with an average payout of £137,000 on group policies.
“Every COVID-19 death is a tragedy,” said ABI assistant director Roshani Hill. “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.”
The ABI explained how the UK's insurance and long-term savings industry is also supporting many charities that are helping some of the people hardest hit by the coronavirus crisis.
Launched in May this year, the Covid-19 Support Fund has already seen £83.9m pledged in voluntary contributions from firms across the sector.
The fund works in partnership with the Charities Aid Foundation, and a network of partners, including the National Emergencies Trust and Business In the Community.
The key aim is to provide immediate relief to charities affected by COVID-19, as well as a longer-term programme of support for people and communities where there is the greatest need.
“We know that coronavirus has long-lasting impacts, and protection insurers will continue to support families hit by this tragedy,” Hill continued.
“No one knows what is round the corner, which is why protecting yourself and your family against the worst is vitally important.”
Author: Chris Seekings
Image credit: iStock