Royal London – How many claims were paid out in 2020?
Royal London has revealed its 2020 claims figures, stating that they paid £591m in protection claims.
Royal London paid over £136m in life and terminal illness claims last year.
- Over 1,500 Term life insurance claims were paid
- The average payout was £73,000 per claim
- The average payout for a terminal illness claim was £135,000 (224 claims paid)
- Nearly one-third of a billion pounds (£314m) was paid in Whole of life claims
- The average Whole of Life payout was £3,820 an increase of 48%
- 99.98% of all Whole of life claims were paid out
Throughout the year, Royal London paid out over £13m to families who had experienced a death due to Covid-19.
Critical illness (CI) claims
- The average CIC claim was nearly £73,000
- More than £133m in claims were paid out in total
The most common reasons for a CI claim in 2020 were:
- Cancer (63%)
- Heart attack (12%)
- Stroke (7%)
Of the CI claims that were declined, Royal London said the majority did not meet the plan definition.
Income protection (IP) claims
- £4.1m was paid out
- 250 new claims were paid
- The average age of an IP claimant was 40 years old
Fewer than 7% of IP claims were not paid due to members not being honest at the application stage. Or, a claim not meeting the plan definition.
Craig Paterson, chief underwriter at Royal London, commented: “Last year we paid £591m in protection claims, a record figure for Royal London. We recognise that it has been a challenging year in many ways. The pandemic has had a devastating impact on many families. In 2020, we paid out more than £13m to families who had experienced a death due to Covid-19.
“In addition to paying claims for Covid-19, customers are also able to get support through Royal London’s Helping Hand service. Customers and their families can receive access to the support of a dedicated nurse with tailored and personal support whenever it’s needed, for as long as it’s needed.”
More than 600 individuals benefited from Helping Hand, with the top reasons for referrals being bereavement (26%), cancer (18%), mental health (15%) and orthopaedic (15%).
Sadly, 55 of the referrals to Helping Hand were for children, with the most common condition being mental health (29%). The average length of support for children with mental health conditions was four months.
Support from Helping Hand is available from the day the policy is taken out and does not require a claim to be made.
Source: Cover Magazine April 2021