In 2013 Legal & General paid out £505 million in protection insurance claims. This was split over:
98.2% of claims were paid out in 2013 to families and beneficiaries of those customers who sadly lost their lives. The average age of claimant was 61 years and the average payout of claims was £48,000.
Legal & General paid 98.2% of Life Insurance claims that were made in 2013 with the average claimant being 61 years of age. The average payout for Life Insurance claims was £48,000.
In addition to this 95.7% of Terminal Illness benefit claims were paid, with the majority of claims being the result of diagnosis of terminal cancer. The average age of those awarded a Terminal Illness payout was 54 years of age and the average payout was approximately £98,000. The highest payout for this benefit was £1 million.
The majority of Critical Illness claims were paid out to those who had been diagnosed with cancer, a heart attack or a stroke. The average payout for a Critical Illness claim was approximately £60,000 and the highest amount paid was £500,000.
The average age of adults who made a claim was 47 years of age and claims relating to children were typically for those around the age of 9 years old. It is clear to see from these average ages of claimants that diagnosis of a Critical Illness is not something that just happens to those who are older. Whilst it is not the most fun thing to think about it is important that you consider how your family would cope if any member were to suddenly become seriously ill.
7.7% of Critical Illness were rejected due to non-disclosure within the original policy application and/or the client's diagnosis not meeting the definitions set within the policy claims set. Non-disclosure of factors such as existing medical conditions, whether intentionally or not, invalidates most insurance policies.
By using a financial adviser to help you set up your Critical Illness policy you can be reassured that your application is presented correctly to the insurer; provided that you are truthful with the broker and adviser that you use.
As with the previous year the average age of claimants for Legal & General Income Protection claims was 42 years, primarily as a result of musculoskeletal, mental health or neurological illnesses. The average monthly benefit awarded for Income Protection Cover was £650 per month. This can be extremely beneficial if the policyholders income is used to pay the majority of the household monthly expenses.
The number of Income Protection claims rejected for the year has dropped from that of 2012, with only 5.2% not being upheld. Again the claim rejections were due to non-disclosures, client diagnoses not meeting the set guidelines and financial reasons.
With Income Protection Benefit it is extremely important that you do not over insure yourself, as you are only allowed to insure a maximum of 50-60% of your gross income. By using a financial adviser you can make sure that your base salary, bonuses and additional factors such as childcare vouchers, are properly recorded in your application to the insurance provider. It is often the case that insurers will want to see proof of your finances at the point of claim.
Looking at these statistics and the high percentage of approved claims in 2013, Legal & General appear to be an insurance provider who will not only provide cover for their clients but also do the right thing and payout on valid insurance claims. Legal & General may be the right insurance provider to meet your individual circumstances, but it is important to check that your application is placed with the best insurer for your needs and medical history.
Please feel free to speak with one of our insurance advisers who will be able to place your insurance application with the correct provider for you. You can contact us on 0800 567 7450.
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