Group life payments for Covid-related deaths soared in the first half of the year to more than 35% above the total for all of 2020, according to trade body Grid.
The total value of group life benefits paid as a result of Covid-related claims was £125.7m for H1 2021, compared to £93m for 2020.
Overall, in H1 2021 the group risk industry supported 1,218 families of employees who died from Covid with group life benefits, 35% more than the 891 families that were supported during 2020.
Data collected by Gen Re on behalf of Grid from group life providers also found Covid lump sum claims paid during H1 2021 averaged £98,112.
Around 18% of all group life claims paid by insurers during H1 2021 were related to Covid.
This was in line with Office for National Statistics (ONS) data for England and Wales, where Covid made up just under 20% of all deaths in the working-age population during the first half of the year.
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.
“The increase in payouts shows the impact that Covid 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, and we urge all employers to consider offering it.”
