Protection  

Royal London paid 98% of life cover claims in 2014

Royal London paid 98% of life cover claims in 2014

UK intermediary protection business Royal London paid out 98 per cent of life cover claims over 2014, totalling just over £58m.

In total over £190m was paid out for life and critical illness claims last year.

The company has paid out £132m to critical illness holders during 2014, with 94 per cent of critical illness claims paid and just 1 per cent of claims declined for non-disclosure.

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Royal London said that the average pay out for a critical illness claim was £87,069 with the largest pay out at just over £900,000.

The youngest claimant was just 24 years old, however the average claimant was 48 years old.

Almost two thirds of critical illness claims were for cancer at 65 per cent, followed by heart attack, 13 per cent, and stroke 6 per cent.

Debbie Kennedy, head of protection proposition for Royal London’s intermediary division, said:“It’s pleasing to see such a high claims paid figure which helps generate massive confidence in Royal London with advisers and their clients.

“All too often the public only get to hear about those cases where claims have been declined, but with just 1 per cent of our critical illness claims being rejected for non- disclosure, consumers can be confident that their claim will be paid.

“It is also interesting to see that once again the same four illnesses account for nearly 90 per cent of all the critical illness claims that were paid in 2014.

“This is why we continue to focus our definition enhancements on the most common reasons for claims so that we can add real value and be able to pay even more claims in 2015.”

ruth.gillbe@ft.com