New research has revealed that there was an 80% increase in the amount paid out for Covid-19 (Coronavirus) related deaths for 2021 compared with 2020, when £93 million was paid.
Gen Re collected data on behalf of Group Risk Development (Grid) from group life providers identifying Covid-19 claims paid across all of 2021.
Findings highlighted that between 1 January and 31 December 2021, dependants of employees with group life benefits received pay outs of more than £168.3 million after losing loved ones as a result of Covid-19.
In total, this represents 1,578 lump sum death benefit claims as well as the capitalised value of 24 dependants’ pension claims where Covid-19 was recorded as the primary or secondary cause of death on the death certificate, or reported on the claim form.
Furthermore, the average lump sum death benefit payment for Covid-19 claims was £100,387, and the average capitalised value of the dependants’ pensions paid for Covid deaths was £410,950.
Katharine Moxham, spokesperson for Grid, commented that losing the income of a loved-one can be “financially catastrophic” for people, and the payment of a group life assurance benefit provides a vital financial lifeline for dependants.
She explained that in addition to financial payments, dependants also often get access to other support such as bereavement counselling and guidance on probate to help them through a challenging time.
“Employees are increasingly looking to their employers to help them through the challenges they’ve faced during the pandemic, and this is for all areas of health and wellbeing, including financial. The figures released today represent hundreds of families that have been supported because of an employee benefit, and we’d encourage more employers to offer this to staff,” Moxham said.
According to Grid, one of the most popular benefits offered to employees is group life assurance, with nearly 10 million UK members of staff covered by this. Group life assurance makes a payment to dependants if the employee dies.
