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Critical illness payouts continuing to rise

families helped by critical illness and life insurance

More critical illness claims were paid out than ever before in 2009, as the problem of non-disclosure continued to be eradicated, a new survey from Investment Life & Pensions Moneyfacts has revealed.

  

According to the research, insurers paid out an average of 90.5% of all critical illness claims last year, up from the figure of 88.4% reported by LifeSearch in 2008. When the clamour for claims statistics to be published first began six years ago, the figure was closer to 75%. Nine of the 12 providers listed either improved on or maintained the level of payouts they achieved in 2008.

  

Legal & General was found to have paid out the highest proportion of claims during 2009 (93.6%), closely followed by AXA and Bright Grey (93%). The number of claims rejected for not meeting the definition of the illness set out in the policy was found to have dropped to 7.6%, down from 9.1%. However, even more encouraging was that just 1.9% of claims were rejected on the basis of non-disclosure, where the claimant has been adjudged to have withheld pertinent information during their application for the policy, compared with 2.5% in 2008. 

  

Critical illness statistics of % of claims paid in 2009;

  

Aegon

88%

  

Aviva 

89%

  

AXA 

93%

  

Bright Grey 

93%

  

Bupa 

88%

  

Friends Provident 

92.6%

  

Legal & General 

93.6%

  

LV= 

90%

  

Royal Liver 

86%

  

Scottish Provident 

91.3%

  

Skandia 

91%

  

Zurich 

91%

  

Average 2009 

90.5%

  

Average 2008 

88.4%

  

Critical illness insurance: News update: 20 April 2010

 

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