THE AVERAGE Life Cover pay of €101,200 is not enough to look after a family, life assurance experts say.
Caledonian Life carried out a survey of its life assurance business, and found that this average sum was not sufficient to look after a family in years to come.
It also found that the average age of claimants across 2011 and 2012 was 61. Greg Dyer, Head of Sales and Marketing at Caledonian Life, said:
It’s unsurprising that just under two thirds of claimants (63 per cent) were over 55. However, what should be noted is that a further 37 per cent were 54 and under. These statistics hold a poignant message – people in the earlier stages of life unfortunately do fall ill and their family and dependants are often left to cope without them.
The report also showed that female average claim amounts fall short of their male counterparts by about €6,000. According to Caledonian, this is most likely down to the fact that women traditionally insure themselves for less than men.
Another gender difference was that the average age of a female claimant was 56 while that of a male was 64. “This anomaly is not easily explained as women have a greater life expectancy than men – however we believe that when we drill down into the cause of the claim it may provide more clarity on the issue,” said Dyer.
Although the payout of €101,200 might seen substantial, according to Caledonian Life it is quite low relative to the incomes of the people concerned. A lump sum payment of €100,000 would only last for just over two years for a family with a requirement of a monthly income of €4,000, for example.
Greg concluded: “It is important for those people seeking Life Cover to give careful consideration to the amount of cover that would be sufficient given their life stage and financial requirements.”