Legal & General paid out £636m to its customers in protection claims in 2017.
Figures from the insurer revealed the amount claimed on critical illness, life insurance and income protection policies last year.
The overall amount paid out increased by £30m from the previous year, with an average of £1.74m paid out every day.
Life insurance accounted for almost half of pay outs, with £313m paid out across 9,004 claims in the year. Some 98 per cent of claims were paid with the majority relating to cancer, cardiovascular and respiratory illnesses. The average claimant was 66 years old.
The pay-out ratio on critical illness policies was lower at 92 per cent, totalling £209m over the year. Some 3,041 claims were paid by the insurer, most commonly relating to cancer, heart attacks and strokes, with an average claimant age of 47. Some 93 per cent of children’s critical illness claims were paid out.
L&G paid £112m across 1,077 terminal illness claims in 2017, paying out on 95 per cent of claims made. Some 99 per cent of cases related to cancer and the average claim age was 55.
Some 441 income protection claims were paid out in the year, totalling £1.2m. The average claimant was aged 42 and received £732.
Steve Griffiths, managing director of protection at Legal & General, said: "Over the past five years we have paid out £2.7bn in individual protection claims and these figures clearly show the crucial role protection continues to play in supporting thousands of people.
"But the UK continues to suffer a protection gap that leaves many families at financial risk. As an industry, we must continue to highlight the risks of a critical event and we hope that advisers can use these figures to showcase the benefits of protection."
