Critical Illness Insurance pays out a lump sum to the policyholder should they suffer any of the illnesses listed in their policy, as long as the illness occurs during the term of the policy.
The average Critical Illness Insurance policy covers around 40 critical illnesses, but the number of conditions covered varies between providers from 10 to more than 100.
The vast majority of claims are for cancers, heart attacks and strokes, although other commonly-covered serious illnesses include:
Each year the Association of British Insurers (ABI) publishes average pay out rate statistics from across all insurers. The latest figures are from 2017 and show that 92.2% of all critical illness cover claims were paid, with over £1 billion getting paid out in total.
The claims statistics for Critical Illness Cover laid out below cover the insurers we most commonly work with and the percentage of claims they’ve paid out over the last 3 years.
Life and Critical Illness Insurance are often packaged together, but the below claims statistics cover standalone Critical Illness Insurance only.
The table below shows what proportion of critical illness insurance claims were paid by each insurer (that published their payout rates).
Legal & General
The above Critical Insurance payout statistics shouldn’t be used to make an exact comparison of insurers but rather to get a general understanding of payout rates across insurers as a whole.
For instance, insurers use slightly different criteria for categorising declined claims. Some insurers might treat a fraudulent claim as declined, whereas others could have a different way of classing them.
Given this, the above table isn’t a simple measure of the best companies for Critical Illness Insurance – one insurer might have better policy wording or could be more suited to you.
We have sophisticated tools in-house to compare all the insurers illness definitions against your specific demographics to find you the most appropriate cover.
Independent Protection Expert at Drewberry
When you take out Critical Illness Insurance, it’s obviously hugely important for you to be able to compare insurers and be sure that the provider will pay out in the event of a genuine claim.
However, you’ve also got to consider how to find the best Critical Illness Insurance for you given your personal circumstances, such as your health and lifestyle.
We started Drewberry because we were tired of being treated like a number and not getting the service we all deserve when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to let us help.
If it is all getting a little confusing and you want to talk through your options to make sure you find the most suitable cover please don’t hesitate to get in touch.
Pop us a call on 02084327333 or email email@example.com.
Independent Protection Expert
I had the pleasure of dealing with Jake Mills in organising my insurance. Jake was fantastic to deal with — his patience and understanding really helped.