Liability for Unpaid Claims

12 Months Ended

Dec. 31, 2020

Note 7—Liability for Unpaid Claims

Activity in the liability for unpaid health claims is summarized as follows:


	Year Ended December 31,
	2020		2019		2018
Balance at beginning of period	$	163,808	$	154,528	$	146,865
Incurred related to:
Current year	584,936		612,305		555,647
Prior years	(14,829)		(1,188)		(3,017)
Total incurred	570,107		611,117		552,630
Paid related to:
Current year	442,127		470,426		424,633
Prior years	129,527		131,411		120,334
Total paid	571,654		601,837		544,967
Balance at end of period	$	162,261	$	163,808	$	154,528

At the end of each period, the liability for unpaid health claims includes an estimate of claims incurred but not yet reported to the Company. Such estimates are updated regularly based upon the Company’s most recent claims data with recognition of emerging experience trends. Due to the nature of the Company’s health business, the payment lags are relatively short and most claims are fully paid within a year from the time incurred. Fluctuations in claims experience can lead to either over or under estimation of the liability for any given year. The difference between the estimate made at the end of the prior period and the actual experience during the period is reflected above under the caption “Incurred related to: Prior years.”

Below is the reconciliation of the liability of "Policy claims and other benefits payable" in the Consolidated Balance Sheets.


	December 31, 2020		December 31, 2019

Policy claims and other benefits payable:
Life insurance	$	237,246	$	201,594
Health insurance	162,261		163,808
Total	$	399,507	$	365,402