26 Mar 2017
Posted by Barry Aldworth 
When it comes to insurance motor and home cover often come to mind before life insurance or specified illness cover, as many of us prefer not to think about the scenarios which would result in a claim being made on one of the latter policies. However, when it comes to protecting you and your loved ones life insurance and specified illness protection are just as important as your car or home insurance.
Unfortunately cancer, one of the leading causes of death in Ireland, is something which has affected all of us. Either directly or because a loved one has been diagnosed. While we are better able to treat the disease than ever before, we unfortunately still do not have a cure. While it may not be a pleasant thought, having life insurance or specified illness cover in place offers your family protection should the worst happen.
“While recent advancements in the treatment of cancer mean that we are now better able to treat the disease than ever before, it still represents one of the leading causes of specified illness or life insurance claims in this country and that’s particularly true in cases of premature death,” John Farrell, Commercial Director at AA Ireland highlighted. “Having cover in place means that, in the worst case scenario, your family’s future is protected and that they will be able to keep a roof over their head or cover any future educations costs of dependents or even medical expenses despite the loss.”
An analysis of life cover claims undertaken by AA Life found that 49.6% of policy claims in 2016 were the result of a death caused by cancer, a slight decrease from 53.5% in 2015. However, the analysis also found that a slight difference across genders as 56% of claims relating to female policy holders related to a death caused by cancer, compared to 46% of claims relating to men.
However, while many people in their late 20s or early 30s may feel that life insurance isn’t something they need, claims on life insurance policies are far from limited to those in their later years. Across all 2016 life insurance claims analysed by AA Life Insurance a significant difference was found between the average age of death for claimants and the national average life expectancy.
Recent CSO analysis put the life expectancy for Irish men and women at 78.3 years and 82.7 years respectively. However, the AA’s analysis of life insurance claims in 2016 found that the average age at death for male policy holders was between 62 and 64 and just 57 years old for female claimants. In addition, the analysis found that in one fifth of claims the deceases was under the age of 50 at the time of death.
“While none of us like to think about death, this report further highlights the importance for all of us, and particularly those with young families to ensure they are covered. While it might be tempting to put off purchasing life insurance when you’re in your thirties or forties, the fact that 1 in 5 claims last year related to an individual under 50 means that by delaying purchasing cover you are putting your family’s future at risk,” Farrell added.
The average claim amount increased slightly in 2016 rising to €104,808 compared to an average of €104,651 in 2015. While non-disclosure of past medical issues remains a barrier to some claims being settled, in total just 1.3% of life insurance claims in 2016 were denied compared to 1.4% in 2015.
In the market for life insurance or mortgage protection, get a quick quote online with AA Life.
