Dependants of employees with insured employer-sponsored death benefits -
one of the most popular employee benefits - have received more financial
payouts as a result of Covid-19 in the first half of 2021 than in the whole of
2020 - announces GRiD, the industry body for the group risk sector - with the
average payment over £98k.
Employer-sponsored group life assurance pays out a benefit following the
death of an employee1, and in the UK nearly 10 million2
employees currently have death benefits insured through the group risk market.
Katharine
Moxham, spokesperson for GRiD said: ‘The financial hardship that
can follow the death of a loved one can be devastating, and it can impact every
area of mental and physical health and wellbeing of those left behind.
‘Employers that offer group life assurance to their staff
provide some of the best possible support for wider health and wellbeing. This
is one of the most affordable employee benefits, and is also one of the most
tangible, and this benefit would have been hugely valued by those that have been affected.’
Impact of the second wave
Overall, in the first half of 2021, the group risk industry
supported 1,218 families of employees who died from Covid-19 with group life
benefits, this is over 35% more than the 891 families that were supported
during 2020.
The total value of group life benefits paid as a result of Covid-19-related
claims stood at £125.7m for H1 2021, compared to £93m for 2020.
The average lump-sum payment for Covid-19 related claims for
H1 2021 was £98,112.
18% of all group life claims paid by insurers during H1 2021
were related to Covid-19. This is in
line with ONS statistics for England and Wales, where for deaths occurring
during H1 2021, Covid-19 made up just under 20% of all deaths in the working-age
population.
Moxham continued: ‘The increase in payouts shows the impact that Covid-19 continues to
have, and how important it is that companies offer employee benefits that
provide financial support to their staff, particularly in light of Covid-19, and we urge all
employers to consider offering it.’
1. About Group Life Assurance https://grouprisk.org.uk/group-life-assurance
2. The group risk market insures 9.88 million people for
death benefits valued at 1.43 trillion pounds – Swiss Re Group Watch
2021.