Protection insurance payouts up £22 million in 12 months according to Legal and General latest claim statistics
Today, 23 May 2016, Legal and General published its latest protection claim statistics for 2015. During 2015 Legal and General paid 10,964 claims totalling £542 million, an increase of £22 million on 2014 figures.
Breaking down the figures further, Legal and General has paid an average £1.5 million to policyholders every single day during 2015, taking total protection claims paid out in the last five years to £2.5 billion, helping 46,000 policyholders in their hour of need.
Income protection claims for the year 2015 totalled £1.3 million, with 403 policyholders protecting their income due to accident or sickness. In total policyholders received a combined £111,302 a month, with the average claimant being 41 at the start of a claim.
The most common reasons for claiming against an income protection policy were musculoskeletal (33.3%), mental health (22.1%), cancer (13.9%), neurological (10.7%) and stroke (4.5%). In total 95 per cent of claims were paid in the year, up on 2014 figures of 93.9 per cent, however even though more claims were paid 2015 total pay-outs were slightly down on the £1.46 million paid in 2014.
Legal & General paid out against life insurance claims to 6,856 policyholders and their families, totalling £277m 2015, £6 million higher than the previous year. Of the claims received Legal and General paid 97.9 per cent of all claims paid, slightly down on 2014, when 98.3 per cent of claims were paid. The largest claim paid in 2015 was £1.2m with the average age of claimants was 63 years old.
Critical illness claims were paid to 2,601 policyholders in 2015 who received a total of £167m, up from £161 million in 2014. The number of claims paid were slightly down on the previous year at 91.5 per cent compared to 92.2 per cent in 2014.
The most common conditions for those receiving payments were cancer (62.3%), heart attack (10.3%) and stroke (5.9%), with the average age of claimants being only 46 years old. The average critical illness claim paid was £65,585, with £838,000 being the largest claim.
Terminal Illness claims were also slightly down on 2014 figures, with Legal and General paying 95.1% of terminal illness claims, with the total amount paid out being £94m. However, policyholders received £8 million more in pay-outs in 2015 compared to a total of £86 million in paid claims in 2014. Again cancer was by far the most common cause of illness, accounting for 99.5 per cent of all paid claims to 998.
Children’s Critical Illness Insurance
Over the last 5 years Legal and General has paid £6.8 million in children’s critical illness claims, helping a significant number of families. During 2015 £1.9 million was paid to 106 families, an increase of more than £228,000 on the previous year.
The insurer saw an increase in paid claims during the year, up from 91.1 per cent in 2014 to 96.4 per cent in 2015. The average pay-out during the year was £18,181, with the largest payment being £28,000. Sadly the vast majority of claims were made by children aged 0-4 years of age (44.3%), followed by children aged between 10-14 (22.6%), 5-9 (18%) and children aged 15 and over (15.1%).
Cancer was the most common reason for a claim in 2015, with 60.5 per cent of claims with the average age of the child being 8. Other causes included stokes (11.4%) average age 7, benign brain tumour (3.8%) average age 5, major organ transplant (3.8%) average age 9 and child funeral benefit (0.5%) average age 4.
Type of protection policy
|Paid claims %||Millions paid £||Paid claims %||Millions paid £|
|Children’s Critical Illness||96.4%||£1.9||91.1%||£1.6|
|Terminal Illness Insurance||95.1%||£94||96.9%||£86|
Source: L&G | Comparison of 2014 and 2015 claims
Steve Bryan, director, intermediary at Legal & General, said: “Dealing with a critical illness diagnosis or losing a loved one is obviously a very upsetting time in people’s lives. During such a difficult period we know our customers and their families rely on Legal & General to provide financial support, and in 2015 we did this by paying out an average of £1.5 million every single day.
“Our statistics show that thousands of our customers need our support every year, which reinforces the value and importance of life, critical and terminal illness cover, as these policies provide peace of mind to both individuals and families during these testing times.
“It is particularly sad to see a rise in the number of children’s critical illness claims last year, as this will be a truly heart-breaking time for parents. For this reason, we automatically include children’s cover in our critical illness policies for parents, so that we can support them throughout this difficult period.”