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