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Think Insurance Doesn’t Pay Out? The Latest Claims Statistics Tell a Different Story

There is a common misconception that insurance companies don’t pay out on claims, particularly when it comes to life insurance. This myth can put people off seeking the protection they need for themselves and their families. The claims statistics tell a very different story.

Life Insurance Companies and Their Commitment to Paying Claims

Life insurance companies have a strong interest in paying out claims, and their yearly statistics reflect that commitment. There are five major life insurance companies in the Irish market, each of which publishes its individual claims figures annually. Irish Life’s 2025 figures are a useful illustration of what that looks like in practice.

In 2025, Irish Life paid out a total of €404.3 million across 7,907 claims, with over €7.7 million paid out on average every single week.

Breaking that down further:

  • Life insurance (death benefit) claims accounted for 2,831 claims, with €265.7 million paid out, representing 66% of the total amount paid.
  • Living benefits, which include Specified Illness Cover and Income Protection, made up nearly 2 out of every 3 claims paid, with 4,830 claims totalling €137.5 million.

That last point is worth noting. Most people associate life insurance with death claims, but the majority of claims paid by Irish Life in 2025 were for living benefits, covering people who became seriously ill or were unable to work.

Life Insurance Claims

Irish Life paid 98.7% of all death claims received in 2025. A total of 2,831 life claims were paid, with €265.7 million paid out. The average age of a life insurance claimant was 68, with an average claim amount of €88,942.

Cancer was the leading cause of life insurance claims, accounting for 32% of cases, followed by heart-related conditions at 31%.

Specified Illness Cover Claims

Irish Life paid 92.8% of all Specified Illness Cover (SIC) claims in 2025. A total of 1,104 claims were paid, with €62.28 million paid out. The average age of a Specified Illness claimant was 54, and the average claim amount was €62,823.

Malignant breast cancer was the single biggest cause of Specified Illness claims. Across all SIC claims, malignant cancer accounted for 68% of cases, with heart-related conditions at 16%.

Income Protection Claims

Irish Life paid 3,239 Income Protection claims in 2025, totalling €68.57 million. The average age of an Income Protection claimant was 48, with an average claim amount of €25,237.

The three leading causes of Income Protection claims were cancer at 27%, musculoskeletal conditions at 21%, and mental health at 20%. The mental health figure is a reminder that protection insurance covers far more than physical illness.

Why Claims May Not Be Paid

There are two primary reasons why a claim may not be paid:

  1. Non-disclosure by the policyholder at the time of taking out cover. If relevant information is not provided when applying for coverage, the insurer may decline the claim.
  2. The claim does not meet the definition of a specified illness as set out in the policy documents. Each illness covered has a specific definition, and a claim must satisfy that definition to qualify for payment.

Being open and accurate when applying for cover is the single most important thing a policyholder can do to protect their ability to claim.

The Takeaway

The data is clear. Irish life insurance companies pay out the vast majority of claims made to them. If you do not have life insurance, Specified Illness Cover, or Income Protection in place, or if you have not reviewed your existing cover recently, it is worth taking the time to do so.

To find out what cover is right for you, speak to one of our advisors at Riordan Financial.

Riordan Financial Brokers Ltd trading as Riordan Financial (C30375) is regulated by the Central Bank of Ireland.