LifeSearch 2024 Claims Statistics

Over £100 million paid out to LifeSearch claimants in 2024

The UK’s leading protection specialist, LifeSearch, recorded 1,418 individual, family, and employer-paid claims in 2024, with insurers paying out a total of £105,070,803 – an average of just over £2 million a week. This surge in claims reflects not only the increasing awareness and uptake of life insurance and protection products but also highlights the growing reliance on such policies in times of need. The company's performance in 2024 showcases both the demand for life, critical illness, and income protection policies and the role these insurance products play in providing vital financial support during difficult times.

The number of claims settled increased by 35% compared to 2023, marking a significant rise in the number of policyholders benefiting from their coverage. This uptick is evident in the total benefit paid to LifeSearch customers, with the company seeing an impressive £43 million (68%) year-on-year growth in claims payouts. This increase not only reflects a higher volume of claims but also demonstrates how insurers are responding to the growing need for comprehensive protection, particularly as more individuals and families face unexpected health challenges.

A closer look at the 2024 LifeSearch claims reveals a detailed breakdown across various categories of insurance. Of the total amount paid out, 23 insurers contributed a combined sum of £65 million across 551 life insurance claims. This is a significant portion of the total, highlighting the ongoing importance of life insurance as a critical financial safety net for families and dependents after a policyholder’s passing. Additionally, a further £16.2 million was paid out to 131 claimants under terminal illness policies, providing essential financial assistance to those diagnosed with life-limiting conditions.

Critical illness claims also made up a significant portion of the total payout, with £23 million being distributed to 471 policyholders. This category of insurance has grown in importance, as it covers conditions such as cancer, heart disease, and stroke, which are increasingly prevalent in today's society. The rise in critical illness claims underscores the value of protection policies that not only offer financial relief but also provide policyholders with the security of knowing they can manage medical treatments and time away from work.

In addition to life and critical illness cover, LifeSearch also provided £698,257 in 'replacement income' to 141 claimants. This type of support is particularly valuable for individuals who are unable to work due to illness or injury, helping to replace lost wages and ease the financial burden of recovery. This aspect of income protection is a growing concern for many in an increasingly unstable economy, where job security is not always guaranteed, and the cost of living continues to rise.

There were also 17 Fracture & Waiver of Premiums claims settled, totaling £59,016. These claims typically occur when policyholders suffer significant injuries, and the waiver of premiums allows them to maintain their coverage without having to pay premiums while they are unable to work. This feature is an essential part of many policies, as it ensures continued protection during challenging times, offering peace of mind to those recovering from accidents or serious injuries.

Female LifeSearch customers accounted for 40% of the total claims paid out. This statistic further demonstrates the importance of protection insurance for women, who often face unique health and financial challenges. The growing number of female policyholders making claims suggests that women are increasingly recognizing the value of having comprehensive insurance coverage for themselves and their families.

One particularly notable case from 2024 was that of a critical illness policyholder, who submitted a claim just 29 days after taking out their cover. This example highlights the importance of taking out protection insurance as early as possible, as unexpected health issues can arise at any time. It also underscores the quick response times and customer-first approach that LifeSearch is known for, offering support and timely payouts to those who need it the most.

The rise in claims in 2024 reflects a broader trend in the UK, where an increasing number of people are recognizing the importance of financial protection against the risks posed by illness, injury, and death. It’s clear that protection specialists like LifeSearch are playing a crucial role in ensuring that people can safeguard their financial well-being and that of their families during challenging and uncertain times.

Justin Harper, Chief Marketing Officer at LifeSearch, said: “Our claims statistics reaffirm the critical role of protection insurance – through advice and online services - in providing financial security through life’s uncertainties. Behind every statistic is a real person, and for consumers and advisers, they serve as a powerful reminder that life is unpredictable – but also that protection insurance does pay.

“Over 1,600 LifeSearch customers made claims last year. Most deal directly with their insurer, but our dedicated claims support team assisted over 400 last year, guiding customers from notification to the final decision. On a rare occasion where a claim was initially declined, perhaps unfairly, we have stepped in to appeal and successfully challenge those decisions to help our customers secure a positive outcome. At LifeSearch, we have long said that the product isn’t just the policy, it’s the claim, and we’re proud to have made such a financial and emotional difference to our customers when it mattered to them most.

“However, there is still room to improve the claims experience. It is important for insurers to notify advisers when customers make claims, as collaboration with us and other distributors will be key to faster responses, more empathetic and practical evidence gathering, and quicker payouts. After all, when it comes to protection, paying claims is what we’re all here to do."

ENDS

Notes to Editors
LifeSearch press contacts: Millie Dunn, edunn@teamspirit.co.uk / Henry Clatworthy, hclatworthy@teamspirit.co.uk