Protection specialist LV= paid more than £5.4m in income protection and personal sick pay claims between January and April 2022.*
LV= supported more than 1,276 people, including more than 700 income protection claimants aged between 23 and 63 with claims totalling £4.4m.
Personal sick pay claims totalling more than £1m were paid to 561 people who were unable to work because of sickness or an accident. The average claim pay out was £1,046 and the most common causes of claim were musculoskeletal conditions, covid-19 and fractures.
The figures are published in LV=’s latest Fuel for Life report for financial advisers specialising in protection.
It includes insights for advisers who have policyholders considering cancelling their protection cover as families begin to feel the effects of the cost of living crisis.
Data from the LV= Wealth and Wellbeing Monitor reveals how 42% (an estimated 22m) of UK adults say they expect their finances to worsen over the next three months and an estimated 5m say their monthly costs have risen by £500 or more. Some 5% (an estimated 2m) say they have cancelled some insurance policies while 73% of adults under 65 do not have protection cover in place.**
The LV= Fuel for Life outlines the support and tools available for households to tackle financial shocks.
“As energy prices and day-to-day living costs are rising, people are looking at ways to rein in their spending. Many are considering cancelling insurance policies, but it is important that they understand the value of protection generally and specifically the benefits that income protection provides.
“Statutory sick pay, for example, amounts to just £99.35 a week and groups that are vulnerable to financial hardship, such as renters or self-employed workers, would struggle financially if accident or illness prevents them working.
“People may question if they can afford protection, but it offers huge benefits and the financial impact of a serious illness or accident can be devastating.
“LV= offers payment breaks*** for the most vulnerable people who are struggling to pay protection premiums and we can work with advisers to help clients retain their cover.”
* This includes both new claims and claims made before 1 January 2022, that were still in payment during 2022
** LV= surveyed 4,000+ nationally representative UK adults via an online omnibus conducted by Opinium in December 2021 and March 2022
*** Terms and conditions apply