Aegon – How many protection claims were paid out in 2020?

Aegon – How many protection claims were paid out in 2020?

The data, which is compiled using Association of British Insurers guidance, showed that a total of £139m of claims were paid by Aegon in 2020. Amounting to 1584 claims for businesses and families.

Life claims

  • Aegon paid out on 96% of all life claims in 2020 to 807 families and businesses
  • Payments amounted to £81.3m
  • The volume of life protection claims received during that year increased by 17% compared to 2019
  • The average size of a claim paid was £100,751
  • The average age of claimants was 63 years old
  • 4% of claims were not paid due to misrepresentation, i.e being dishonest at the application stage.  Non disclosed alcohol consumption accounted for 31% of the declined claims, with the remaining 69% being due to non-disclosure of respiratory issues, cardiac issues, cancer, diabetes or smoking

Reasons for life claims

  • Cancer was again the most common cause of death for a life claim (40%)
  • Heart-related conditions (21%)
  • Respiratory-related deaths (14%), with the proportion of respiratory-related deaths doubling from 7% in 2019

Terminal Illness

Terminal illness (TI) claims are paid out on a diagnosis where life expectancy is 12 months or less.

  • 21% of Aegon’s life claims were paid early under its terminal illness definition
  • 93% of all terminal illness claims received were paid
  • £23.3m was paid to over 205 individuals and their families in 2020

Critical illness claims

Claims for critical illness fell by 14% compared to 2019.

  • £34.4m was paid throughout 2020
  • This represented 93% of all claims
  • Cancer (62%) continued to be the most common reason for a claim being made
  • Heart attacks (12%)
  • Stroke (6%)

Aegon stated that 7% of critical illness claims were refused due to the definition of the claim not being met (3.5%). Misrepresentation accounted for the remainder ie dishonesty at the application stage (3.1%).

Income protection claims

  • 91% of new claims received were paid in 2020
  • £1.4m was paid out in regular monthly benefits
  • Aegon paid 93% of Income protection claims
  • Cancer was the most common reason for income protection claims (32%)
  • Mental health (22%)

COVID – 19 Claims

  • Coronavirus was shown on 12% of death certificates as the cause of death
  • Aegon received only two claims related to Coronavirus for income protection

Aegon has also published a ten-year history of claims paid for each of the protection products. See full 10-year history of claims Here

Source: Cover Magazine April 2021

If you are interested in arranging protection insurance it really can pay to take expert advice.

Next steps

Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.

Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget!

An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

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Please feel free to read our Independent client reviews, or read about the team at Future Proof

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Why you can trust Future Proof.

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Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer from a medical condition and concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

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