Bright Grey paid out 91% of critical illness claims in the last 6 months of 2011.
Just 2% of claims were declined for non-disclosure. The average critical illness payout was £82,000.
Cancer remained the most common reason for a claim (55%), followed by heart attack (10%), stroke (10%) and multiple sclerosis (9%).
47% of claims were made by people who were 40 or under and the youngest claimant was just 23 suffered a stroke.
Roger Edwards at Bright Grey says: "Over half of our claims were for cancer which might appear to be a frightening statistic. But the good news is that with better screening and earlier testing, more people than ever before are surviving the disease. For many, chemo and other treatment means taking months off work and this is where the money from a critical illness policy comes into its own - easing any financial worries so they can focus on getting better. One consequence of better screening is that we are seeing more people being treated for earlier forms of cancer."