Income Protection Claims rose by 9% in 2022.
Posted on 6th June 2023 at 17:25
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I read an article in one of the broadsheets this weekend referencing the rise in the number of long- term sick in the UK, with more than 2.5 million people now out of work due to long-term health conditions and almost 500,000 struggling with mental and physical health issues, such as anxiety, back pain and repetitive strain injury. The report focused on how the welfare system seems to now incentivise a lost generation to ‘stay at home’.
For those of us with mortgages and other financial commitments to pay, relying on the state benefit will not keep the roof over our heads or the car on the drive, that will be up to us to be protected against.
Income Protection is one of those areas we tend to discuss at a time when we take out a big financial commitment. For most of us that will be our mortgage. It may also be during periods in our lives when we are responsible for a growing family and become the main breadwinner. This could obviously affect either sex in the workplace.
In a recent report from the ABI, Protection Insurers paid out £6.85 billion from both group and individual protection policies, these payments have been made through bereavement, injury and illness policies. In 2022, 15,900 individuals claimed on income protection policies, a 9% increase from the previous year. The total value also increased with £231 million paid to those policyholders who were unable to work.
In March this year, Aviva reported paying out more than £1 billion in protection claims from 2022 to more than 50,000 individuals, supporting families and individuals at some of the most critical times in their lives, with £50 million being paid out on income protection policies to just over 3680 policyholders. Aviva alone paid out 98.3% of all individual income protection claims made last year.
If you are looking for an independent view on your income protection needs, do get in touch for an initial consultation.
Tagged as: Income protection, Income protection claims
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