Tuesday 29 November 2022 10:24 PM Life insurance payouts hit record 100BILLION last year - up by a quarter from ... trends now
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US life insurers paid out a record $100 billion in death benefits in 2021, marking a jump of more than 27 per cent from 2019.
The spike in death benefit payouts is suspected to be linked to pandemic-era deaths. Over one million people have died from Covid, though the true death toll of the pandemic is projected to be much higher due to non-Covid causes such as drug overdoses and delaying crucial medical care.
Payouts grew by 11 per cent in 2021 to $100.19 billion, according to the American Council of Life Insurers. The latest spike follows a similar year-over-year increase of 15 per cent in 2020.
That rate has increased yearly since 2019, when insurers paid out roughly $78 billion.
Reasons for the deaths were not disclosed by the ACLI, which posits that the increase is linked to the pandemic.
Life insurance policies are meant to protect spouses and children from potentially devastating economic harm brought on by the unexpected death of a family member.
The US has recorded the largest increase in life insurance payouts since the influenza pandemic in 1918, when payments surged 41%.
Myrna Guerrero, a national sales director for major life insurance
