During 2009 Aviva (formally Norwich Union) paid out 1,499 critical illness (CI) claims, totalling almost £118 million.

The average amount paid out has increased from £75,000 in 2008 to £79,000 in 2009.

Cancer remained by far the most common cause, 67% of all claims in 2009.

The number of claims declined in 2009 for non-disclosure of medical facts at the policy’s outset remained stable at 2%.

A further £151 million has been paid to the families of people who have died, or been diagnosed with a terminal illness in 2009.

This takes the total Aviva has paid out to over £1 billion pounds in critical illness and life insurance claims since 2006.

Richard Verdin, director of protection at Aviva, said: “Critical illness cover remains a crucially important solution for many. With 9 in 10 claims being paid. Collectively we owe it to customers to ensure people do realise the potential need and value of life insurance before it’s too late.”

 He stated “47% of Britons don’t have critical illness or life protection and even more worryingly 75% of single parents have no protection, which has huge implications for their families”.

 To ensure that you and your family are fully protected in the event of suffering a critical illness contact 1 STOP Financial Services for a free review. 01437 767110    www.1sfs.co.uk

In 2009 Legal & General paid 93.6% of their critical illness claims. Only 6.4% of claims were declined – one of the lowest ratios in the industry.

The average payment for a critical illness claim was £70,731. The average age of claimant was 44. The most common conditions claimed for were Cancer, Terminal illness, Heart Attack, Stroke and MS.

 Out of the declined claims, 1.8% were for non-disclosure and 4.6% were for not meeting the policy definition. In total, £152 million was paid out to 2,149 individuals and families, making their lives easier at an extremely difficult time.

Managing Director of Protection at Legal & General, Bernie Hickman, said:

“We’re 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. However, 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.

“Protection offers added peace of mind and is good for individuals, for their families and for the State. Fully protected people are less likely to suffer financial hardship, less likely to rely on sick pay and benefits and less likely to require help and handouts from friends and family. Paying out on critical illness claims is absolutely essential to our financial well-being as a society.”

Bernie Hickman chairs the ABI committee that, in 2008, brought about the introduction of the ABI Protection claims code. The new rules resulted in a vast improvement for customers across the industry and an improvement in claims ratios from all providers. This has been a vital step in restoring consumer trust in the industry.

1 Stop Financial Services can help you evaluate the importance of protecting your lifestyle and family with Critical illness protection plans. We can establish the level of cover required and provide you with competitve quotes as to the cost of this essential cover.