Average claim for serious illness and income protection increasing, life cover decreasing
Bank of Ireland Life has today released its 2015 claim statistics, which reveal that the Bank paid out life insurance payments of over €110million. These included life cover payments of almost €71million, specified serious illness claims of €26.75million, income protection claims of almost €9.5million and terminal illness payments of €3.67million.
The average claim by individuals for life cover in 2015 was €54,326, with 62% of claims related to men. This compares with an average claim of €56,792 in 2014. The average claim by individuals for serious illness in 2015 was €69,533 (€68,264 in 2014), with 56% of claims related to men.
The top three conditions for life cover claims by individuals were cancer (44%), heart (16%) and respiratory (8%), and there were three life cover claims for farm accidents last year. Over one in four (28%) income protection claims are related to Psychiatric illness, with a similar proportion (26%) related to Musculoskeletal issues and one in five (18%) related to Cancer. 75% of claims for income protection were paid to women last year.
Brian Grimes, Head of Customer Propositions, Bank of Ireland Life commented: “Bank of Ireland Life has paid out €591 million in overall claims over the last 6 years. In 2015, almost €71million was paid out in life cover claims, which is an increase from about €57million in 2010. Across life cover, serious illness and income protection we paid out more in 2015 compared with 2014.
“Insurance companies want to pay valid claims and support people at key times. We’d encourage anyone with a life assurance policy to familiarise themselves with what they’re covered for. They should consider it as future financial support at a time when their family may need it. People should ask themselves if their intentions have been made clear with regard to the recipient of the money, and preparing a will is the most obvious way to do this, allowing them to also assess whether they have provided sufficiently for dependants. Finally, noting life assurance cover in a will ensures that family or friends are aware of which insurance company to contact in the event of death.”
Other claims statistics from Bank of Ireland Life for 2015 include:
Life Cover Claims
- Claims of €70,829,603 in 2015 versus €64,435,406 in 2014
- The youngest claimant was 30 years old;
- 28% of life cover claims were paid for people aged 59 or under.
- Top three reasons for life cover claims were cancer (44%), heart (16%) and respiratory (8%).
- Three life cover claims for farm accidents last year
Serious Illness Claims
- €26,744,919 was paid out for serious illness claims in 2015 versus €23,338,388 in 2014
- 80% of serious illness claims were made by people aged under 59;
- 56% of claimants were male
Income Protection Claims
- €9,498,713 was paid out in 2015 for income protection claims versus €8,202,471 in 2014
- The major reasons for income protection claims were psychiatric (28%), musculoskeletal (26%) and cancer (18%).
- 75% of claims were paid to women.
For further information on Bank of Ireland Life products and a copy of the full report visit https://personalbanking.bankofireland.com/plan/financial-planning/2015-claim-stats/