by Cassidy Morrison at Daily Mail
- Payouts have grown by double digits since 2020 largely due to Covid-19 deaths
- The jump in death benefit payouts between 2019 and 2021 exceeded 27 per cent
- Year-over-year spikes since 2019 rival payouts made in the 1918 flu pandemic
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…
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