Research by Zurich UK Life has revealed that musculoskeletal problems were the most frequent cause of claims under the company’s income protection insurance last year.
Having crunched its numbers, leading UK Life and Income Protection insurer Zurich revealed that the average monthly benefit paid out to claimants was £1,421 – thats £17,000 a year.
The highest single annual benefit paid was £59,000 – that’s to someone who had Income Protection insurance and became unable to work.
Zurich also revealed that 94% of claims were settled (accepted). Of those rejected, only 2.5% were because the disability was not covered by the insurance policy.
Musculoskeletal problems affect the ligaments, muscles, tendons and bones and include spinal injuries. Whilst they topped the claims league, neurological conditions including strokes were not far behind, followed by cancer and mental health diagnoses.
This data further underlines the importance of Income Protection Insurance – once described by Which? as “a must-have insurance for most working adults, but one few of us currently have.” The consumer rights and advice organisation’s research also indicates over 90% of people do not use income protection to guard themselves against loss of earning through accident, illness or injury.
Available as a personal insurance policy or a group scheme offered as an employee benefit, most income protection offers long term benefits – until retirement or death – although lower cost fixed term plans are available. Typically they offer between 50-70% of an average income to provide a potentially vital financial lifeline whilst someone is unable to work.
If you have any questions about Income Protection Insurance, including what it covers and how much it can cost, simply Contact Us today.