Life insurance paid 1,275 million euros in compensation in 2020 – The insurance blog

Life insurance paid 1,275 million euros in compensation in 2020

Life insurance claims in 2020 amounted to more than 1275 millions of euros. The coronavirus pandemic has motivated many people to take one of these policies, which have been the economic support for thousands of households in such a difficult year.

The 2020 has already been left far behind and the end of the pandemic is finally seen. Vaccination is progressing and we have even said goodbye to masks abroad. However, it is impossible to forget a year as hard as 2020. According to the National Institute of Statistics (INE), last year the highest number of deaths since the postwar period was registered . Almost 430.000 people died, many of them due to the coronavirus.

Unfortunately, we can never know if something will happen to us tomorrow, not even if a pandemic will come. The coronavirus has been a before and after in many homes. And, in many cases, the financial help of risk life insurance has been decisive.

Life insurance claims in 2020

Currently, more than 20, 6 million of people in Spain have risk life insurance . This is how these policies work: if you die, your beneficiaries receive the contracted capital to help them cope with the loss and related expenses. It is also possible to receive the money yourself in case of permanent disability; You only need to take out disability life insurance.

Every year they die between 65. 000 Y 70. 000 people who have one of these policies. This means that 1 in 6 people who die is covered and leaves compensation for their loved ones, according to calculations by Unespa, the insurance employer.

In total, life insurance claims in 2020 amounted to more than 1275 million euros , a 6, 25% more than the previous year. In 2019 , the average compensation for life insurance was about 31. 000 euros.

The figures for life insurance claims have grown progressively over the past few years. For example, the amount that insurance companies have paid has grown by 16, 9% in just five years: from 1018 million euros in 2015 to 1275 in 2020.

Why have life insurance claims increased in 2020?

This growth in compensation is due to many factors, but the most important is that more people are now protected by these policies than the previous year . In the first quarter of 2021, more than 20, 6 million people in Spain had risk life insurance, a 0, 27% more than in the same period of 2020. The coronavirus pandemic has led many people to consider hiring one. The arrival of the virus was so unexpected and devastating that many households want to have peace of mind for the future.

Likewise, we must also take into account the difficult year that has been 2020. The pandemic triggered the number of deaths and a 10, 7% more deaths than in a normal year . Thus, the pandemic also explains the growth in life insurance claims in 2020: many of these policies have covered deaths resulting from the pandemic. You can check in this link how to know if your policy covers the coronavirus .

Life insurance in the coronavirus pandemic

In the life insurance indemnities in 2020 it is also necessary to include the 8.4 million that a group of insurers has paid to the health professionals during this pandemic. Since 14 March 2020 and until 31 and until 2020, 107 companies in the sector have given free coverage to one million health professionals , both from health centers and hospitals and nursing home staff. This coverage included life insurance and a subsidy for hospitalization.

The insurance has covered 5000 health workers and their families for free

In all that time, close to 5000 health professionals and nursing home staff have needed the help of this free coverage . In total, the 107 insurers that created the hedge fund in the first days of the pandemic have paid 8, 4 million euros:

  • 4.3 million euros have been paid to the families of 143 health workers who died due to the coronavirus. Each household received 30. 000 euros.
  • Others 4.1 million euros were paid in compensation for subsidy for hospitalization to 4. 487 workers of health centers and residences who were hospitalized for coronavirus. Each received between 400 and 1400 euros, with an average of 914 euros. If the worker died after being hospitalized, their families received the money corresponding to the days he was admitted.

Is it worth taking out life insurance?

The life insurance claims in 2020 reveal two facts: more and more, households in Spain rely on these policies to be protected against any unforeseen event. And not only that, but many families have had to collect them. However, you may think that the possibility of needing them is so small that they are not worth it. Unfortunately, you would be wrong : 3 each 10 people with life insurance die less than 5 years after hiring it. It is relatively likely that you pay very little time and, in return, your loved ones receive a much higher capital. In summary: compensates a lot.

The coronavirus has reminded us of what really matters: taking advantage of the time with those we love the most. The life insurance claims in 2020 have been the support of many households in a very difficult year. In the face of any unforeseen event, be it a pandemic or an accident, money has to be the last thing we think about . Life insurance gives you financial peace of mind, so you only have to focus on what is really important. Do you join the tranquility?

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