If you’ve ever doubted, or wondered whether if the worst did happen, you’d get a successful payout if you, or your family, ever had to make a claim, you need not worry.

New figures released today by the Association of British Insurers (ABI) and Group Risk Development (GRiD) show that the insurance industry paid out more than £5.3 billion in protection claims in 2018 – a £200 million increase year-on-year.

Overall, nearly every claim made was paid in 2018 and the number of claims paid out surpassed 200,000 for the first time ever. That’s 200,000 individuals and their families who benefitted from the financial support that a protection policy can offer in times of need.

Protection insurers paid out over £14 million every day through products such as income protection, critical illness or life insurance. The ABI says that these products are vital to helping people to get back on their feet following an injury, illness or bereavement.

Roshani Hewa, Assistant Director, Head of Health and Protection at the ABI, says: “It’s good to know that families going through some of the worst times, dealing with a loss and serious injury or illness, are at least getting more support from insurance products than ever before. The growing size of a typical life insurance claim shows how much of a difference such cover can have, and the potential difficulties families without it might face.

“Falling ill or being injured can be traumatic, especially if you find yourself unable to work.  Protection insurance is there to ease the financial burden, so it’s heartening to see the levels of protection showing such positive growth, particularly considering the excellent mental health support many products provide.”

When might life insurance not pay out?

The bottom-line is that it is unusual for a life insurance claim to be rejected, as insurance industry-supported figures reveal, nearly every protection insurance claim was paid in 2018.

For the tiny proportion of life cover claims that are declined there are two main reasons: fraud and a lack of disclosure when taking the policy out.

Fraud occurs when someone makes a fake life insurance claim. It’s usually a deliberate act by the policyholder who is not, in fact, deceased or terminally ill and fraud accounts for some of the insurers’ declined claims, but assuming your family is making a genuine claim this isn’t anything to worry about.

Another small proportion of life insurance claims are declined due to a lack of disclosure. An insurance contract is a "contract of utmost good faith", which means that all parties to the contract are under a strict duty to deal fully and frankly with each other. Customers must disclose all facts that are "material" (or relevant) to the risk for which they are seeking cover. This problem can easily be avoided by being honest and forthright when you take out the policy.

When you apply for life insurance through Essential Insurance, we’ll run through your options and your application to get your policy in place.  We know that our customers take out cover to give both themselves and their families peace of mind. Our aim is to help ensure that if the worst did happen, that your family is protected, and if a claim is made, that it is accepted. We do this by helping our customers with their application form and emphasising the importance of answering all questions fully and accurately.

If you would like help and advice, or you want to discuss the merits of different types of policy with one of our protection advisors, please don’t hesitate to give us a call on 0800 612 8005