We often query if Life Assurance, Income Protection and Specified Illness cover are worth it, but the results released from 2025 across the industry confirm that it’s been a year of vital supports paid out and the below is a summary of the key trends and insights:
Life Assurance - Pay outs for Life Assurance claims surpassed €500 million in the market, with a high claims pay out rate of 97%.Aviva Life paid out a total of €59.4 million to 463 customers, with their largest claim paid being €6.35 million.
Specified Illness Cover - Over €70 million was paid out across the industry for specified illness claims, with an improved average claim pay out rate of 87%. Cancer continued to be the dominant cause, accounting for 67% of claims in this category. Over 50% of male claims were for cancer, while females were 77%. Over 50% of female cancer claims related to breast cancer. Zurich Life’s average pay out was €72,000 and the average claimant was 53. Their largest pay out was €601,000 and their youngest claimant was 23 years of age.
Income Protection - This category saw substantial pay outs exceeding €80 million, with new claims increasing by an average of 32% compared to the previous year. Psychological illness emerged as the leading cause of claims (26%), followed closely by orthopaedic conditions (25%) and cancer (21%). Aviva’s average income protection claim duration extended to 7.8 years, with their longest known claim being 34 years. Irish Life paid a total of 3,239 income protection claims, with their average claim amounting to €25,237 while their claimant age was 48 years old.
Beyond financial compensation, significant investments were made in rehabilitation and recovery support services, including psychological support, physiotherapy, and cancer care programs. These initiatives, along with expanded wellness services, aim to assist claimants in their recovery journeys and, where possible, facilitate a return to work.
These insights reflect the evolving health landscape and the enduring importance of robust protection solutions for individuals and families in safeguarding financial wellbeing for you and your loved ones.
Having Life Assurance, Income Protection and Specified Illness cover in place has never been more important to protect you and your loved ones. If you prudently put in place living protection benefits, reviewing them on an annual basis is vitally important.
If you would like to discuss any of the above in more detail, please get in touch.
