The dependants of employees with insured employer-sponsored death benefits received more coronavirus-related payouts from insurers in the first half of 2021 than during the whole of 2020.

This is according to Group Risk Development (GRiD)1, the industry body for the group risk sector. In 2020, 891 families who lost a loved one to COVID-19 received payouts totalling £93m. By contrast, 1,218 families received payouts totalling £125.7m during H1 2021. This represents a 35% increase on the 2020 figure in half the time, with an average lump sum payment of £98,112.

An invaluable support

Group life insurance is one of the most common employee benefits provided by employers, and this data shows how vital they such cover can be to the financial resilience of bereaved families. In fact, 18% of all group life claims paid out by insurers in the first half of 2021 were COVID-related, reflecting the ravages of the second wave earlier this year.

A spokesperson for GRiD stated, “This 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 […] We urge all employers to consider offering it.”

As with all insurance policies, conditions and exclusions will apply