Introduction to Life Insurance Payouts in Ireland

Life insurance is a cornerstone of financial protection for individuals and families, ensuring economic stability in uncertain times. In Ireland, life insurance payouts not only provide peace of mind but also highlight the importance of understanding key factors influencing claims. This guide dives into the landscape of life insurance payouts in Ireland, covering average payouts, causes of claims, trends, and insights.

Overview of the Irish Life Insurance Market

The Irish life insurance market has grown significantly over the years, with gross premiums reaching an impressive USD 39.2 billion. The market is projected to grow at a compound annual growth rate (CAGR) of 5% during the forecast period, reflecting increasing awareness and demand for insurance products. With credibility and consistency at its core, Ireland’s insurance industry continues to thrive, offering robust options for consumers to secure their financial futures.

As the market evolves, technology, consumer behaviour, and economic factors are shaping its trajectory. Let’s explore claims statistics from key players in Ireland's life insurance sector to understand why life insurance is essential for financial well-being.

Average Life Insurance Payouts

New Ireland Assurance

New Ireland Assurance reported significant payouts in 2017, with an average life cover claim payout of €51,358. The total life cover payments that year exceeded €70.5 million, indicating the insurer’s commitment to fulfilling its obligations. These figures demonstrate the importance of life insurance as a reliable support mechanism for families facing the loss of a loved one.

Aviva Life & Pensions Ireland

Aviva Life & Pensions Ireland has also made substantial payments to claimants. In 2023, Aviva processed 454 death benefit claims, resulting in payouts of €52.3 million. On average, families received approximately €115,000 per claim, showcasing the financial security life insurance offers during difficult times. This underscores the importance of selecting a reputable insurer to ensure a quick and fair claims process.

Causes of Life Insurance Claims

New Ireland Assurance

Cancer remains the most common cause of life cover claims, accounting for 38% of all claims with heart-related conditions following at 17%. For specified illness claims, cancer was even more prevalent, representing 56% of cases, followed by heart-related issues at 21%. Understanding these statistics illustrates the need for adequate policy coverage for critical illnesses.

Aviva Life & Pensions Ireland

In 2023, Aviva Life & Pensions Ireland processed numerous claims related to cancer, cardiac issues, and respiratory problems. Cancer was particularly significant for specified illness claims, accounting for 56% of cases in males and 52% in females, with breast cancer comprising 28% among female cases. These findings highlight the importance of disease-specific coverage options.

Specified Illness Claims

New Ireland Assurance

New Ireland Assurance provided substantial support for specified illness claims, with an average payout of €73,299 in 2017. Cancer-related illnesses made up over half (56%) of these claims, making it clear that critical illness policies are highly relevant for individuals concerned about health risks affecting financial stability.

Aviva Life & Pensions Ireland

In 2023, Aviva distributed €17.8 million for specified illness claims, with an average payout of approximately €109,000 per claim. Cases of breast cancer and other cancers were predominant among females, while cancer and cardiac issues led the claims among males. For those considering specified illness coverage, these numbers emphasise the value of comprehensive policies.

Income Protection Claims

New Ireland Assurance

Income protection claims are critical for individuals unable to work due to health reasons. New Ireland Assurance paid €11,080,573 in income protection claims in 2017, with mental illness (29%), musculoskeletal issues (22%), and cancer (20%) being the top causes. Interestingly, 71% of new claims were made by women, highlighting the gender-specific impact of income protection policies.

Aviva Life & Pensions Ireland

Aviva saw an increase of €3 million in income protection claims in 2023. The average length of time claimants were unable to work was seven and a half years, with the longest claim spanning an incredible 32 years. Psychological issues played a significant role in driving claims, illustrating the importance of mental health awareness and support in modern insurance policies.

Demographics of Claimants

New Ireland Assurance

New Ireland Assurance claimants ranged widely in age. Although the average age for life cover claimants was not disclosed, the youngest claimant was just 29 years old. For specified illness claims, the average age was 51, with the youngest being 25 years old, reflecting the unpredictable nature of health risks regardless of age.

Aviva Life & Pensions Ireland

For Aviva, the average age of claimants in 2023 was 46 for females and 49 for males. Interestingly, the youngest claimants were 23 years old (females) and 25 years old (males), further emphasising the necessity of life insurance coverage for individuals at any stage of life.

Trends and Insights

Increasing Claims for Terminal Illness

New Ireland Assurance observed a rise in terminal illness claims in 2017. This trend is expected to continue as awareness grows around the terminal illness benefit offered by many policies. Being prepared for life’s uncertainties through options like terminal illness cover is essential to ensuring peace of mind.

Technological Innovations

The Irish life insurance industry is transforming with the integration of InsurTech. Advancements such as artificial intelligence (AI) and the Internet of Things (IoT) are streamlining claims processes, enhancing efficiency, and improving customer experiences. Innovation is a key driver in making insurance both efficient and accessible.

Rehabilitation and Support

Rehabilitation is an often-overlooked aspect of life insurance. In 2023, Aviva spent €250,000 on rehabilitation support for customers with claims, a significant increase from €200,000 in the previous year. This demonstrates the increasing emphasis insurers are placing on customer well-being beyond financial payouts.

Conclusion and Call-to-Action

The life insurance market in Ireland continues to grow, driven by increasing consumer awareness, evolving technologies, and comprehensive policy options. Whether you are considering life cover, specified illness cover, or income protection, choosing the right provider and policy is key to ensuring security for you and your loved ones.

Ready to take the next step? Learn more about life insurance in Ireland and explore your options. For detailed life insurance quotes online, visit us today!

Share this post with friends and family to help them understand the importance of life insurance, or leave a comment below with your thoughts and questions. Together, let’s secure financial peace of mind for all!

Frequently Asked Questions (FAQ)

What is the average life insurance payout in Ireland?

The average life insurance payout in Ireland varies by provider. For example, New Ireland Assurance reported an average life cover claim payout of €51,358 in 2017, while Aviva Life & Pensions Ireland had an average payout of approximately €115,000 per claim in 2023.

What are the common causes of life insurance claims in Ireland?

Some of the most common causes of life insurance claims in Ireland include cancer, heart-related conditions, and respiratory problems. For specified illness claims, cancer consistently accounts for the majority of cases, representing over 50% of claims for both New Ireland Assurance and Aviva Life & Pensions Ireland.

How long does it take to process a life insurance claim in Ireland?

The processing time for life insurance claims in Ireland depends on the insurer and the complexity of the claim. While many claims are resolved promptly, ensuring you provide accurate documentation can speed up the process. Check with your insurance provider for specific timelines.

What factors affect life insurance payouts in Ireland?

Factors influencing life insurance payouts in Ireland include the type of policy, the sum insured, the insured person's health history, and the cause of the claim. Providers may also consider the accuracy of the information provided during the application process.

What is the average age of life insurance claimants in Ireland?

For life insurance claims, Aviva reported in 2023 that the average age of claimants was 46 years for females and 49 years for males. For specified illness claims, the average age recorded by New Ireland Assurance was 51 years.

What are specified illness claims, and how common are they in Ireland?

Specified illness claims refer to payouts for diagnoses of critical illnesses covered under a policy, such as cancer or heart disease. These claims are common in Ireland, with cancer being the leading cause. In 2023, Aviva paid an average of €109,000 per specified illness claim.

What are income protection claims, and how are they handled in Ireland?

Income protection claims provide financial support for those unable to work due to health conditions. In 2017, New Ireland Assurance paid €11 million for such claims, with mental illness and musculoskeletal issues being the leading causes. Aviva has also seen significant payouts, with average claim durations spanning several years.

What documentation is required for life insurance claims in Ireland?

Required documentation typically includes a claim form, the policy document, a death certificate (for death claims), or medical records (for specified illness or income protection claims). Your insurer will provide a list of specific documents needed.

What are the life insurance claim approval rates in Ireland?

Claim approval rates in Ireland are typically high for valid claims, as insurers like New Ireland Assurance and Aviva have shown strong commitment to fulfilling claims. Denials usually occur due to non-disclosure of relevant information or claims outside policy terms.

What trends are shaping life insurance payouts in Ireland?

Trends include increasing claims for terminal illness benefits, the growing role of technology in streamlining claims processing, and a stronger focus on rehabilitation and customer support. InsurTech innovations are enhancing efficiency and customer experiences across the Irish life insurance industry.