Aviva Life & Pensions Ireland DAC, one of the biggest insurers in Ireland announced that their customers received a total payout of €106.5 million for 2021—a slight decrease from 2020’s amount of nearly €109 million. 2,534 individuals across life policies, specified illness and income protection were compensated with this grand sum (2020: 2,585).
Last year, cancer-related claims comprised the bulk of specified illness payments for both sexes; men made up 45 percent and women 65 percent. Heart conditions dominated male cases with 35%. However, these figures differ from last year when 77% of female claims and 60% of male were attributed to cancer.
In 2020, Aviva paid out a colossal €51 million to 453 death benefit claims – with one pay-out topping off at an unprecedented €2 million. Cancer was again found to be the main culprit among these cases; cardiac and respiratory issues following it in line for second and third place respectively
How does it work?
For example, Anne earns 40k per year. if Anne passes away, her pension scheme has the potential to pay out a lump sum of her salary x3 (€120,000).
If you want your dependents to be taken care of in case something happens to you, it’s important that you explore what benefits would be provided in such an event and make sure they are adequate – or look into taking out life assurance cover or increasing any existing benefits.
Specified Illness claims:
Over the year, a total of €12.8 million was disbursed to 132 customers struggling with critical illnesses; in 2020, this figure had been at €10 million for 126 customers. On average, women claiming on their policies were 52 years old when diagnosed – 34% of claims related to breast cancer (-16% compared to 2020) and 31% for other types of cancers (+4%). Cardiac issues accounted for 12%.
An analysis of male claims revealed that, in comparison to 2020’s 15%, cancer-related claims fell by a notable 45%. Additionally, heart conditions decreased from 43% to 35%. In contrast, stroke-related claims saw an increase of 3%, reaching 7%. Men claiming on their defined illness policies averaged 56 years old – the youngest female at 33 and the youngest male 36.
What is Specified Illness protection?
Specified Illness Insurance, also known as Serious Illness Insurance, offers a one-time lump sum benefit in the event of being diagnosed with an illness that meets the policy’s specified criteria. Unlike private medical insurance plans from providers such as VHI and Irish Life Health, this type of coverage does not pay for your medical or hospital care; rather it provides you with an immediate financial cushion at the time of diagnosis. With Specified Illness Insurance on your side, you can rest assured knowing that even amidst significant health challenges there is help available to ease some of life’s worries.
Do I Need Specified Illness Insurance?
If you have kids or other people who rely on you, a Specified Illness Insurance policy is essential. Without it, your family may not be able to cope with the financial repercussions of serious illnesses that are specified in this insurance plan such as loss of income and medical & rehabilitation costs. Having this coverage can help safeguard your loved ones from unexpected expenses.
Secondly, if you are encumbered by debt, a Specified Illness insurance policy is the assurance that your financial needs will still be taken care of even if you fall ill and can no longer earn an income.
Income protection claims:
In 2021, Aviva paid out an astonishing €46 million to around 2,000 income protection customers – not too dissimilar from 2020’s total payout of €45 million. Those sums were given to policyholders who encountered health or injury issues that prevented them from working in the time frame specified. Analysing new claimants last year, it became apparent that more women took advantage of their policies than men at 53% compared to 47%, a continuing trend we have seen over the years.
The age range of claimants last year stretched from 22 to 48 years old, demonstrating the importance of income protection for individuals of all ages. Mental health-related issues were a leading factor in claims at 25%, with orthopaedic problems following close behind at 24%. Cancer accounted for 21% and neurological conditions 9%. This marks two consecutive years that psychological issues have been highest amongst claim causes.
What is income protection?
If you are temporarily unable to work due to injury or illness, Income Protection will provide a reliable flow of income until your return. The plan is available up to age 54 and can be ended at either 55, 60, or 65. You are eligible for coverage up to 75% of your yearly earnings minus state benefits or other plans; the maximum payout being €250,000 annually. Be aware that any payments received from this plan will be classified as taxable income by the government.
You can select the earliest start date of your payments as soon as 13 weeks—or what we call a “deferred period.” The cost you pay for coverage is based on factors such as your age, health, deferred period and desired level of protection.
FJ Hanly & Associates is one of the leading providers of life assurances, specified illness and income protection insurance in Limerick. We are dedicated to helping our customers manage the financial consequences of serious illnesses, injury or other incapacitating events. With our policies, we guarantee that you and your family will be able to cope with any medical costs or unexpected expenses associated with long-term. We navigate the best providers based on the needs of your family and/or business