L&G increase pay out rate on Critical illness claims

L&G have published statistics today revealing an increase in the percentage of claims paid to customers with critical illness policies. The increase of 1.4% on 2010 to 93.2% meant that the insurer paid out a total of £177m in critical illness claims. The average pay out of £63,573 was made to 2,784 people.

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2 thoughts on “L&G increase pay out rate on Critical illness claims

  1. I don’t really care what percentage of claims they pay out – all that really tells me is what percentage of their customers don’t know what the policy conditions are. What I want to know is what percentage of policies pay out. If its only 1% of all policies that pay out then its close to pointless insurance, but if its 75% that pay out then its good value for money

    • Hi Steve,

      Thank you for your comment and your interest in Protected.

      In this instance, ‘policy’ and ‘claim’ are interchangeable – obviously a policyholder is not going to claim without being ill, and so the payout rate for all Critical Illness policies under L&G stands at 93.2%.

      Just to clarify, this is an increase on 2009 of 1.8% and compared with other insurers the payout percentage from L&G is substantially higher. You are correct that there is a difference of 6.8% that hasn’t paid out, and unfortunately this is normally due to non-disclosure.

      To give you a little more information, I thought I’d add this link for you. A press release from L&G shows that their Critical Illness Cover has a 5-Star Defaqto rating. Defaqto are an independent UK research body who ensure that all the illnesses covered and the policy definitions go beyond the ABI standard. L&G are the second-biggest life insurance provider in the UK and pride themselves on their high payout rate for both life and Critical Illness.

      http://www.legalandgeneral.com/advisercentre/news/articles-protection/cic-5-star-qualtity-cover.html

      Again, we really appreciate all comments on the website, if you do have any other questions or would like to discuss further, please contact us.

      James