Insurer LV= has published its 2008 protection claims record, with 91% of claims paid on income protection policies and 87% on critical illness policies.
LV= paid out £12.1m in income protection claims, and £8.4m in critical illness claims.
2008 claims data from LV= reveals that:
- The top three causes of income protection claims over the last 12 months were mental disorders (30%), musculoskeletal disorders (19%) and circulatory system disorders (11%)
- The average age of a female income protection claimants was 44, with male claimants three years older at 47
- Income protection claims lasted for an average of seven years
- Cancer claims accounted for more than half (57%) of all critical illness claims, falling from 69% in 2007
- In 2008 critical illness policyholders received an average claims payment of £63,820
Example Income Protection claims
|
Age at claim
|
Occupation
|
Cause of claim
|
Current monthly benefit
|
Number of months so far on the claim
|
Total amount paid out so far is more than
|
|
27
|
Nurse
|
Back pain
|
£1,057
|
249
|
£260,000
|
|
34
|
Engineering Officer
|
Chronic Fatigue Syndrome (CFS)
|
£1,462
|
43
|
£60,000
|
|
42
|
Psychologist
|
Multiple Sclerosis (MS)
|
£1,180
|
48
|
£55,000
|
|
58
|
Financial Adviser
|
Ruptured Achilles tendon
|
£2,116
|
3
|
£6,000
|
31 December 2008.
Example Critical Illness claims
|
Age at claim
|
Cause of claim
|
Amount
|
|
24
|
Aortal valve replacement
|
£72,000
|
|
38
|
Benign brain tumour
|
£68,413
|
|
42
|
Leukaemia
|
£44,278
|
|
54
|
Cancer of right kidney
|
£11,702
|
31 December 2008.
Income protection insurance: News update: 13/03/2009
