LV= reports rise in critical illness and income protection payouts
Protection specialist LV= has published its 2010 protection claims record, which shows an increase in claims paid on both critical illness and income protection policies. 93.5% of all critical illness claims, and 92% of income protection claims were paid in 2010, both up from 90% of claims paid in 2009.
The amount LV= paid in claims also increased in 2010, paying over £9m in critical illness claims (£7.9m in 2009), and more than £12m in income protection claims (£11.9m in 2009). Over the years, LV= has maintained a consistent track record of paying protection claims with a steady upward trend in the number of claims accepted. LV= is one of only a few providers to publish its income protection claims data.
2010 protection claims data from LV= also reveals:
The most common reasons for critical illness claims were cancer (63%) followed by heart attacks (12%)
The average payout on a critical illness policy was £74,511
The top causes of income protection claims were mental disorders (30%), and musculo-skeletal disorders (20%)
The average annual benefit for income protection claims was £15,596, with an average seven year payout
Mark Jones, LV= head of protection, said: "Our consistently high and improving claims payment illustrates our firm commitment to support people in their time of need, and to limit the risk of any concern at the point of applying for a policy. This success is in part down to the investment in our tele-interviewing service, intelligent underwriting, and exploring the reasons for non-disclosure rejections in past years and putting measures in place to reduce them.
"When people make a claim on a protection policy, it is often at an extremely difficult time in their life. As such it is absolutely vital that we are a provider that can be trusted, not just to pay claims, but also to treat claimants in a caring and professional manner.
"Our transparency in publishing protection claims statistics reflects our policy of openness. We want to make sure that advisers and consumers alike are fully aware of why claims can be rejected, so that we can all play a part in keeping rejections to a minimum."
Matt Morris, senior policy adviser at protection intermediary LifeSearch, comments: "These are excellent paid claims figures from LV=. It is particularly pleasing to see the income protection stats included as not every insurer publishes these figures, although they should do for the sake of transparency in the eyes of the consumer."