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.



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.


      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.