“I don’t need insurance…?”
“I don’t need insurance.”
This is something we often hear from new clients.
But that is often because they don’t know the probability of claiming and the likelihood of being paid out.
Perhaps the response is really, “I hate paying for something that I don’t think will happen to me” but unfortunately the statistics suggest this isn’t an outside chance.
Few roll the dice on their family’s future once they know the odds.
At Engage we recommend life insurance or protection to every client whose financial plan could be rendered pointless if they don’t have their disaster scenario covered.
We have clients, personal friends and family who have claimed on critical illness policies before their 50s (perhaps no surprise when you see the stats below).
Thankfully they are all recovering well, and the payouts have been extremely useful in the circumstances and in some instances, life changing. It has always provided some financial peace of mind while the emotional stress and uncertainty of the recovery was high.
Aviva (other protection providers are also available and recommended) have recently produced stats on claims, and it is a powerful reminder as to how real these life events are.
Life insurance and Critical illness Cover (CIC) are two of the most common protections we put in place for clients and here are Aviva’s stats:
Critical Illness Cover
Having this in place can provide a safety net to help focus on the recovery from the illness instead of financial loss or additional expense at that time.
Age of claimants
The percentage of claimants for Critical Illness cover dramatically increases from age 40 and peaks between age 50-59.
The table below shows the claims Aviva paid in 2023 by age and gender
Most claimed illnesses
Cancer is the cause of the highest number of claims for men and women (5 in 10 for men and more than 7 in 10 for women).
Heart attacks and strokes make up the top 3 illnesses for men, accounting for almost 3 in 10 claims.
Heart attacks and strokes are in the top 5 illnesses for women.
Being paid out
Less than 9% of claims were not paid and almost all of these were for non-disclosure (not declaring something on the application) or definitions not being met.
Many of our clients’ protection needs are understandably higher than the average and a standard health check or GP report is required, which means disclosure will be more thorough and less of an issue when claiming.
Life Insurance
A financial plan can look very different if a portion of the household income is lost.
Many of us subconsciously worry about how loved ones would cope if we were no longer around.
More than 99 of 100 claims were paid by Aviva in 2023.
The sad reality is that claims can be at anytime and can often be a shock.
Most claimed illnesses
Cancer, cardiovascular and respiratory illness are the 3 highest claims for men and women and represent roughly 3 in 4 claims.
Suicide is a concerning statistic, which accounted for almost 4% in men and 3% in women.
Treatment abroad
Clients are often concerned that not all treatments or the best treatments are available in the UK. Aviva provide the option to be treated abroad, and there has been a growing number of claimants benefiting from this.
If you want to check if you have enough cover or you are worried that loved ones might not have enough cover in place, please contact us.
We’ll be happy to recommend suitable cover and provide some free quotes. For some, cover might be less than the price of a regular cup of coffee and provide a lot more peace of mind.