Life and Income Protection Insurance Statistics

Below are sources for the Life and Income Protection Insurance statistics we have used for our advertising collateral.

LIFE INSURANCE IN NUMBERS

£117,162 currently owed by the average household with a mortgage
http://themoneycharity.org.uk/media/August-2016-Money-Statistics.pdf

Only 50% of households with a mortgage have life insurance
http://www.scottishwidows.co.uk/knowledge-centre/protection/mortgage-holders.html

Average funeral cost is £3700
https://www.moneyadviceservice.org.uk/en/articles/how-much-does-a-funeral-cost

98.2% of claims paid at £4.2m per day in 2015
https://www.abi.org.uk/News/News-releases/2016/04/Record-amount-paid-out-in-vital-protection-insurance-claims

Cost
Quote obtained on 05/12/2017 for a 50 year old male (DOB 01/01/67) for £150k LTA life only to age 70 HSBC returned a quote of £25.03 per month and LV= returned a quote of £25.79 if accepted at normal rates.

INCOME PROTECTION COVER

In 2015 only 300,000 people in the UK had income protection cover
https://www.abi.org.uk/~/media/Files/Documents/Publications /Public/2015/Statistics/Key%20Facts%202015.pdf

As of 2016 the current level of SSP is £89.35 per week
https://www.gov.uk/statutory-sick-pay/overview

Compared to the £300 per week living wage
https://www.livingwage.gov.uk/

Each year, 1 million workers are unable to work due to sickness or injury
https://www.gov.uk/government/news/a-million-workers-off-sick-for-more-than-a-month

In 2015, 91.2% of income protection claims were paid out to the tune of £131 million.
https://www.abi.org.uk/News/News-releases/2016/04/Record-amount-paid-out-in-vital-protection-insurance-claims

Cost
Quote obtained on 05/12/2017 for a 50 year old male (DOB 01/01/67) to age 67 on £24k per annum paying £1200 per month LV= quoted £25.33 per month. Quote obtained on 05/12/2017 for a 30 year old male (DOB 01/01/87) to age 67 on £24k per annum paying £1200 per month LV= quoted £9.45 per month

Providing protection and insurance for you and your family

CRITICAL ILLNESS EXPLAINED

In 2015 the average age of a claimant was between 45 and 50
http://www.legalandgeneral.com/library/protection/sales-aid/W13945.pdf
http://www.aviva.co.uk/media-centre/story/17468/aviva-protection-customers-consistently-receive-ov/
http://adviser.royallondon.com/protection/service/claims/
https://www.aegon.co.uk/content/dam/ukpaw/documents/critical-illness-claims-paid.pdf
https://www.zurich.co.uk/en/about-us/media-centre/life-news/2016/zurich-pays-over-212m-in-protection-claims-in-2015
http://www.lv.com/critical-illness-cover/useful-information/claims-paid
https://www.aiglife.co.uk/intermediaries/news/aig-life-increased-number-of-claims-paid-in-2014
http://www.vitality.co.uk/mediaonline/PDF/Presales/About/Press%20Centre/vitality-release-claims-stats
https://www.oldmutualwealth.co.uk/Media-Centre/2016-press-releases/february-2016/Old-Mutual-Wealth-releases-2015-Protect-claims-statistics/
http://reference.scottishwidows.co.uk/docs/2016_05_Claims_Stats.pdf

The average payout was £60,000
https://www.abi.org.uk/News/News-releases/2016/04/Record-amount-paid-out-in-vital-protection-insurance-claims

In 2015 UK insurers paid out 93.1% of critical illness claims at a cost of £1.13bn. This has increased from 80% since 2005 due to the ABI code of practice.
https://www.abi.org.uk/News/News-releases/2016/04/Record-amount-paid-out-in-vital-protection-insurance-claims

Cost
Quote obtained on 05/12/2017 for a 50 year old male (DOB 01/01/67) for £150k LTA life and £50k CIC to age 70 AEGON returned a quote of £70.59 per month. 

Quote obtained on 05/12/2017 for a 50 year old male (DOB 01/01/67) for £50k CIC to age 70 AEGON returned a quote of £51.52 per month if accepted on normal terms.

AVOIDING LIFE INSURANCE SHORTFALLS

The average household in the UK has consumer credit debt to the value of £6,889 as of June 2016
http://themoneycharity.org.uk/money-statistics/

With over 50% of universities now charging the maximum £9000 a year fees
http://www.oecd-ilibrary.org/docserver/download/9615031e.pdf?expires=1471966540&id=id&accname=guest&checksum= 323CAF73CEDEA6735086EFED3F4B6CD9

The average debt per student at the end of 2013/14 was £12,651
http://themoneycharity.org.uk/money-statistics/

the average funeral can still set your loved ones back by £3700
https://www.moneyadviceservice.org.uk/en/articles/how-much-does-a-funeral-cost