Most of us buy insurance hoping we’ll never have to use it.
Whether it’s life insurance, critical illness cover or income protection, the ideal outcome is that the policy simply sits in the background, providing peace of mind while life carries on as normal.
But the latest industry figures tell an important story. In 2025, protection insurers paid out £7.84 billion in claims – the equivalent of around £21.5 million every day – helping individuals and families navigate bereavement, illness and injury. While no one wants to find themselves in those situations, the figures are a reminder that protection insurance exists for a reason.
Life Doesn’t Always Go to Plan
It’s easy to think serious illness or long periods away from work are things that happen to other people. In reality, unexpected events can affect anyone, regardless of their age or stage of life.
The latest data shows that almost 281,000 protection claims were paid across life insurance, critical illness, income protection and other protection products during 2025, with an overall claims payment rate of 95.9%.
Behind every claim is a person or family facing a difficult situation. For many, the financial support provided by their policy helped cover everyday living costs, mortgage payments and other essential expenses at a time when they needed it most.
Protection Is About More Than Physical Health
One of the biggest misconceptions about protection insurance is that it’s only there to support people after a serious accident or physical illness. While those remain important reasons for claiming, today’s figures paint a much broader picture.
In 2025, 19% of individual income protection claims were linked to mental health conditions, demonstrating how significantly mental wellbeing can affect someone’s ability to work. At the same time, musculoskeletal conditions remained the most common reason for income protection claims, highlighting that many everyday health issues – not just life-changing illnesses – can have a major impact on someone’s finances.
Many modern protection policies also include additional health and rehabilitation services, helping people access support and, where appropriate, return to work sooner.
Protection Isn’t About Expecting the Worst
Some people avoid taking out protection because they feel it means planning for something negative to happen. In reality, it’s no different from insuring your home or your car.
You hope you’ll never need to make a claim, but having cover in place can provide valuable financial security if the unexpected does happen. Protection isn’t about expecting the worst; it’s about recognising that life can be unpredictable and making sure your finances are prepared if circumstances change.
For many people, knowing their family, income or mortgage has some level of financial protection in place provides reassurance long before a claim is ever made.
The Right Cover Depends on You
Protection isn’t a one-size-fits-all solution. It’s a phrase that’s used a lot, but for good reason! Someone buying their first home may have very different priorities from a family with young children or someone approaching retirement.
Life insurance, critical illness cover and income protection all serve different purposes, and the right combination depends on your personal circumstances, financial commitments and long-term goals.
That’s why reviewing your protection regularly is just as important as reviewing your mortgage, pension or investments. As life changes, your financial priorities often change too.
Protecting Your Financial Future
None of us can predict what the future holds, but what we can do is make sensible plans that help protect ourselves and the people we care about if life takes an unexpected turn.
The latest claims figures show that protection insurance continues to provide vital financial support to hundreds of thousands of people every year. While everyone hopes they’ll never need to rely on it, having the right cover in place can make a significant difference when it matters most.
If you’d like to review your current protection arrangements or discuss what cover may be appropriate for your circumstances, feel free to get in contact.
📞 Call 020 8366 4400 or 📧 email enquiries@cedarhfs.co.uk to see how we can help you out.