The Bereavement Award vs. Life Insurance

While life insurance payouts are designed to provide financial support after the loss of a loved one, they are not without challenges. The Financial Conduct Authority (FCA) recently highlighted significant delays in the processing of life insurance claims, particularly for term insurance policies, where insurers may take up to 122 days to pay out for a bereavement award when somebody dies.

According to the FCA’s findings, these delays are often caused by:

•Rigorous Checks: Higher sums assured under term insurance policies typically require more extensive verification, such as medical evidence and cause of death investigations.

•Staff Shortages: Many insurers are struggling to recruit and retain experienced claims assessors. The FCA noted that a competitive labour market and the impact of flexible or remote working have exacerbated these staffing issues, slowing the claims process.

•Industry Challenges: Over-reliance on outdated processes and administrative inefficiencies further contribute to the delays.

In comparison, other forms of life insurance claims—such as whole-of-life policies and group life cover—are processed more quickly, averaging 53 days and 36 days, respectively. These policies often involve smaller payouts or less rigorous checks, which can account for the quicker resolution times.

The FCA has urged insurers to improve their processes and provide timely support to bereaved families. For more details on these findings, you can visit the source of the FCA findings here.

A quote of the FCA website provides:

Matt Brewis, director of insurance at the FCA, said:

‘The loss of a loved one can be intensely stressful and we expect firms to offer the right support to help their customers during this difficult time…We expect all life insurers to act on our findings and avoid unnecessary delays with claims.’

Bereaved families pay and pay every month their policy  premiums to cover them for the life insurance needed to financially help the bereaved to cope with the loss of a loved one which often is also the ‘bread winner.’

Our Principal Senior Solicitor Ronnie Hutcheon has criticised these extensive delays. In a direct quote he says

‘In such time of need insurers must be in a position to ensure minimum fuss and efficient claim handling to limit the time and financial stress.  This is  not currently being met by insurers and should be put in priority.  Any bereaved families who have lost a loved one, can also in many situations can also claim for a bereavement award.  We will help the family deal with all the paper work including assistance with helping to speed up the claim for the life insurance pay out.’

Bereavement Compensation: Understanding Your Rights After Losing a Loved One

Losing a loved one due to someone else’s negligence is a devastating experience. On top of the emotional toll, families often face financial challenges stemming from funeral costs, lost income, and other unexpected expenses. While life insurance payouts can help, delays in processing claims are common, as recent findings from the Financial Conduct Authority (FCA) show.

However, when a loved one dies due to the fault of another, families may also be entitled to a bereavement award and other compensation under the law. This article will explore your rights to compensation, focusing on the bereavement award and how to make a claim.

Bereavement Award: What Is It?

A bereavement award is a statutory compensation payment available to certain family members after a wrongful death caused by negligence, such as in road traffic accidents, workplace incidents, or medical negligence. It is designed to provide recognition of the emotional suffering caused by the loss of a loved one.

In England and Wales, the bereavement award is currently set at £15,120. However, the eligibility criteria are strict and apply only to:

•The deceased’s spouse or civil partner.

•Parents of a deceased minor under the age of 18.

•Since 2020, cohabiting partners (who lived with the deceased for at least two years prior to their death).

Why Compensation for Bereavement Award Matters

Beyond the bereavement award, families can pursue additional compensation to address financial losses caused by the death of a loved one. This can include:

•Loss of Financial Dependency: Covering the income the deceased would have provided.

•Funeral Expenses: Costs incurred for burial or cremation services.

•Loss of Services: Compensation for the loss of unpaid services, such as childcare or home maintenance, previously provided by the deceased.

Seeking compensation is not just about financial security—it’s also a way to hold those at fault accountable and seek justice for the loss.

How to Claim a Bereavement Award and Compensation

If you’ve lost a loved one in an accident caused by another person’s negligence, you may be entitled to both a bereavement award and further compensation. To claim:

1.Establish Fault: You must demonstrate that the death resulted from another party’s negligence.

2.Gather Evidence: This includes accident reports, medical records, and witness statements.

3.Seek Legal Advice: Specialist solicitors, like R James Hutcheon Solicitors, can guide you through the claims process. Visit R James Hutcheon Solicitors for more information and expert assistance.

To understand the process better, you can read these key articles:

•What is a Fatal Accident Claim?

•Can I Claim Loss of Dependency After a Fatal Accident?

•Understanding Funeral Expense Claims After a Fatal Accident

•Who Can Claim a Bereavement Award?

•How Much Can I Claim After a Fatal Accident?

Why Choose R James Hutcheon Solicitors for to claim for a Bereavement Award?

At R James Hutcheon Solicitors, we understand the emotional and financial strain families face after losing a loved one. Our expert solicitors have decades of experience in handling bereavement awards and fatal accident compensation claims, ensuring you get the justice and financial support you deserve.

•We work on a no-win, no-fee basis, meaning no upfront costs for you.

•Our compassionate team offers personalised guidance every step of the way.

•We’ll help you claim not just the bereavement award but also any other compensation you may be entitled to.

Take the Next Step To Claim

If you’ve lost a loved one in an accident caused by someone else’s negligence, don’t wait to seek help. The bereavement award and other compensation are your legal rights, and our solicitors are here to ensure you receive them.

Contact R James Hutcheon Solicitors today to speak with an expert solicitor. Visit R James Hutcheon Solicitors or call us to begin your claim.

Claiming compensation isn’t just about financial recovery—it’s about securing justice and preventing future tragedies. Let us help you take the first step today.