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.