Legal and General paid 93.6% of critical illness claims in 2009, a figure that has increased every year since 2005, when it was 79%. Only 6.4% of claims were declined last year, of which 1.8% were for non-disclosure and 4.6% were for not meeting the policy definition. In total, £152 million was paid out to 2149 individuals and families, making their lives easier at an extremely difficult time.
Bernie Hickman at Legal & General says, "We are in the business of paying claims and that should be the main purpose of any insurance provider. We should be there when people need us most, so to have to decline 148 claims during the course of last year is disappointing. We have worked tirelessly to combat non-disclosure and we have succeeded in reducing these declined claims year-on-year. In an ideal world, no policyholder would ever have a claim declined. If you suffer from an illness or condition that is covered on your policy and you have answered all the questions fully at the time of applying, then we will pay out. This is the way it should be for everyone."
Average payment was £70,731
Average age of claimant was 44
Most common conditions claimed for were cancer, terminal illness, heart attack, stroke and MS
Critical illness insurance: News update: 14 March 2010