According to the Association of British Insurers (ABI), the amount paid out in protection claims increased 25% from 2013 to 2014. Their figures show that last year £3.44bn was paid by protection insurers, compared with £3.08bn the previous year. Protection Policy Director at ABI, James Dalton, said that: “These figures show that 97.7% of all types of protection policy claims are paid”.
“At the most stressful times, insurance can make a real difference”, Mr Dalton continued: “As well as relieving the financial strain, insurance policies can provide support during a difficult time”. The support that insurers provide to consumers is often delivered efficiently and promptly, at a time when illness and even death has affected loved ones’ lives.
More and more insurers are adding value to their offerings, such as expert medical advice and much needed emotional support: “Income protection policies can offer rehabilitation and back to work support services”, said Mr Dalton as an example, “insurance can play a role in improving families’ financial security, to help them after the loss of a loved one or support them if they are unable to work”.
But despite this, Mr Dalton highlights that “many households still have no real financial safety net. Each year, one million workers suddenly find themselves unable to work for more than four weeks due to serious illness or injury.” Protection can often cost less than people think and pays out when it’s needed most.