It is around this time every year that the majority of life companies issue their claims statistics for the previous year, and it can make for some very interesting reading.
First of all, life companies and insurance companies will always say they are in the business of paying claims. When it comes to life cover this is definitely the case. Aviva, for example, paid 99 per cent of life claims last year, with most other life companies boasting a similarly impressive figure. When you dig a little deeper, however, it can make for some stark reading.
Under covered Ireland
The average claim for life cover in 2017 varied from €51,358 with New Ireland to €98,089 with Aviva.
While having some level of life cover in place is certainly better than having no life cover, for those of us that have life cover, do we really have enough if that is the average paid out? Taking the higher average figure of €98,089, if you are earning a salary of €30,000 per annum for example, this lump sum will only replace a little more than three years of income. Although €98,000 can be viewed as a significant amount of money, if you are unfortunate to leave young children behind you, is it really enough?
You cannot talk to anyone nowadays that has not been impacted in some way by cancer.
It will come as no surprise that cancer was the principle cause of death in 2017. However, nearly half of all death claims were due to cancer. That is almost one in every two death claims in 2017!
The average age at death is fairly similar across the life companies, standing at approximately 63.
When you think most people will have to wait until at least their 67th birthday to draw the state pension, 63 is a young average. Some 40 per cent of claims paid by Zurich were for people aged 60 or younger.
You may already have some financial protection in place, such as mortgage protection when you bought your home. However, do you have the peace of mind of knowing that if you became seriously ill or died prematurely your family could remain financially secure?
The biggest risks to our health are cancer and heart related illnesses. The unfortunate reality is that many Irish families are struck by these illnesses and premature death every day and the financial impact can be significant and long lasting.
It is relatively easy to take out your plan and then you can put it out of your mind. Well, that is until you need to make a claim!
It is then that you will be glad of the protection plan you have in place.
If you would like to discuss your options call Planalife today on (0900 6492664 or email [email protected].
Brendan J Kelly Insurance Broker/Business Consultant Ltd t/a Planalife Ltd is regulated by the Central Bank of Ireland