Quick answer · Updated August 2026
The average individual protection claim paid in 2024 was £18,700 (ABI) — but that blends monthly income-protection benefits with lump sums. Typical term-life lump sums run far higher: most UK term policies are bought at £100,000–£250,000, and guaranteed over-50s plans pay £2,000–£20,000. Total individual payouts: £5.32 billion across 275,000 claims.
The Numbers (ABI, 2024)
| Measure | Figure |
|---|---|
| Average individual protection claim paid | £18,700 (up 10% on 2023) |
| Total individual claims paid | £5.32 billion across 275,000 claims |
| Typical term-life sum assured bought | £100,000–£250,000 |
| Typical over-50s guaranteed plan payout | £2,000–£20,000 by provider and premium |
| Claims accepted | 97.9% |
Sources: ABI 2024 protection data; panel purchasing patterns.
Why the average looks "low": it includes income-protection claims paid monthly and modest over-50s plan payouts alongside large term-life sums. The payout your family receives is simply the sum assured you chose — which is why sizing cover to real needs (mortgage plus dependent years) matters more than any average.
Frequently Asked Questions
Whatever sum was chosen at purchase: most UK term policies are bought at £100,000–£250,000. The £18,700 statistical average (ABI, 2024) blends in monthly income-protection benefits and small over-50s plans.
Straightforward claims on trust-written policies typically pay in 2–4 weeks; estate-held policies wait for probate and commonly take 6–12 months.
It is free of income and capital gains tax. Inheritance tax can apply if the payout falls into the estate — writing the policy in trust avoids this.