LV= paid nearly £12m for coronavirus-related claims in 2021
Protection specialist LV= said it paid almost £12million for claims directly linked to Covid-19 last year.
LV=’s analysis of its records showed that 724 life insurance claims in 2021 totaling £11.3m were linked to Covid-19. Life insurance policies pay out when an insured person dies.
The coronavirus-related payments also included £130,000 in personal sickness payments, £84,000 in critical illness payments and £64,000 in income protection payments.
That made around £11.6m in total related to Covid-19.
LV= said life insurance claims (including terminal illness and claims over the age of 50) totaled nearly £74 million, supporting more than 6,600 families and their loved ones.
The main causes of claims were cancer (39%), Covid-19 (16%) and heart conditions (15%), said the insurer.
In total, LV= said it paid record individual protection claims totaling more than £119m in 2021.
It has supported over 9,000 claimants and their families, paying 96% of all individual protection claims, including life, critical illness and income protection.
LV= said some claims go unpaid for a variety of reasons, including failure to disclose existing medical conditions, misrepresentation and fraud, and failure to meet policy definitions.
Claims for personal protection against sick pay, which is designed for the self-employed and contract workers, have totaled more than £2.7 million. The youngest claimant was 19 years old and the main grounds for complaint were musculoskeletal (37%), Covid-19 (21%) and fractures (11%).
Anna Rogers, Head of Underwriting and Claims at LV=, said: “In 2021, Covid continued to dominate our lives and was a key part of our claims experience across multiple products. We expect to see these claims decrease as we continue to live with the virus and testing decreases.
“Industry players know that supporting individuals and their families going through a life-changing event is why we do what we do.
“The LV= Wealth and Wellbeing Monitor found that one in four people didn’t have protection insurance because they didn’t know enough about it. We still have a long way to go to earn the public’s trust and demonstrate how important protection is.