Two of the UK’s largest insurers released their critical illness claims paid data for 2009. Both insurers paid out over 90 percent of the total number of claims made, totalling well over £150 million.
Claims paid in 2009
Legal & General and Axa released figures for the amount of critical illness claims paid out in 2009. L&G paid out approximately 94% of all claims made in 2009. The main reasons for non-payment were not making the critical illness definition (4%) and non-disclosure upon making the application (2%). In total, £153 million was paid out to 2,149 individuals and families. These figures were similar to those reported by Axa who paid out 93% of the claims made, with 5% not meeting the definition and 3% of claims being declined for non-disclose. Axa also announced that it paid out in 98% of life insurance claims made in 2009.
For both insurers the median claimant age was between 40-44 years of age and the most common conditions claimed were for cancer, heart attack, stroke and multiple sclerosis (in order of total claims made).
Mortgage critical illness cover
Critical illness is a popular form of mortgage protection (more information can be found on our mortgage critical illness cover page). This type of policy pays out a tax-free lump-sum if the policyholder suffers a critical illness (such as cancer, heart attack or stroke). As a result, this type of protection insurance can be used to provide cover for home loans against the risk of serious illness or injury and can be combined with mortgage life insurance protection.