Royal London paid 99.7% of protection claims – including 92.6% of critical illness (CI) claims – in 2019, totalling more than £575m.
The life office said today that last year it paid out 2,032 CI claims. The total value of CI claims paid was £150,128,833, with an average payout of £73,882.
The life office also said today that nearly £145m was paid in life and terminal illness claims.
More than 1,300 term life insurance claims were paid, with an average payout of around £80,000 per claim.
Terminal illness claims had an average payout of more than £139,000 with 254 claims paid.
More than a quarter of a billion pounds (£269m) was paid in whole of life claims. The average payout was around £2,300 with 115,361 claims paid in total.
Royal London paid on average nearly £74,000 for critical illness (CI) claims with more than £150m paid out in total.
Of the CI claims that were declined, the majority did not meet the plan definition.
The most common reasons for a CI claim in 2019 were cancer (65%), heart attack (10%), stroke (6%), children’s CI (5%) and multiple sclerosis (3%).
Of the children’s CI claims paid 53% were for cancer and 15% for open heart surgery. The average age of a CI claimant (excluding children) was 50 years old and the average age of a children’s CI claimant was eight years old.
A spokesman for Royal London confirmed that £3.3m was paid for income protection (IP) claims. A total of 257 new claims were paid in 2019, with the most common reasons for IP claims being musculoskeletal (43%), cancer (17%) and mental health (12%). The average age of an IP claimant was 40 years old.