Protection  

Scottish Widows pays out £190m in life and CI claims

Scottish Widows pays out £190m in life and CI claims

Scottish Widows has published its protection claims statistics, showing the insurer paid out over £190m in life and critical illness claims last year.

This equates to an average of over £2m paid every week to our customers in life cover payments and £1.7m in critical illness claims. In 2014 Scottish Widows paid out 99 per cent of life and 90 per cent of critical illness claims.

Out of the 72 declined life claims, 57 were due to mis-representation and 15 where the definition of terminal illness was not met, the firm said. Out of the 258 declined critical illness claims, 175 were due to the definition not being met and 83 were due to mis-representation.

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The total number of claims paid for life cover was 5,348 and for critical illness 2,213. Since 2000 Scottish Widows has paid out on almost 40,000 life and over 18,000 critical illness policies.

Looking at life cover in isolation, heart-related claims accounted for 13 per cent of cases for females and 25 per cent for males. The total amount paid out in life claims was £105.3m, with £13.7m paid in terminal illness claims. The average policy duration at claim stage was 7.5 years and on average we pay out at 58 years old.

For critical illness, the main reason to claim remains cancer. The total amount paid out in critical illness claims was £86.6m, with an average claim amount of £36,034. The average period in force before a claim was six years and the average age of a claimant was 50.

Since January 2000 the total combined amount we have given back to our customers across both life and critical illness claims stands at £1.9bn.

Scott Cadger, head of underwriting and claims strategy at Scottish Widows, said: “In 2014 we paid out over £3.7m every single week in life and critical illness claims, showing the true value of taking out appropriate protection cover.

“And since 2000 we have helped in the region of 60,000 individuals and their families through what can be both an emotional and financially difficult time.”

donia.o’loughlin@ft.com