According to LV=’s claims report for 2023, the firm supported over 8,000 claimants and their families, and paid 94% of individual protection claims, covering life, critical illness and income protection.
The company said that it paid over £27m in critical illness claims in 2023 to more than 370 individuals and families. The highest payout was over £600,000.
Cancer accounted for 59% of claims in this category, followed by heart attack at 10% and stroke at 5%.
The most common forms of cancer were breast at 25%, bowel at 13% and prostate at 12%.
The company added that it had paid over £605,000 for 25 children’s claims, with most being cancer claims.
Life insurance, which includes terminal illness claims, totalled over £87m, supporting 5,500 families and their loved ones.
The highest claim was £2m, and the primary reasons for claims were cancer at 36%, heart-related conditions at 23%, respiratory at 9% and stroke or brain haemorrhage at 5%.
The average age for a claim was 65 and the youngest was 28.
LV= shelled out £17.2m in income protection claims to 1,100 individuals and families. Musculoskeletal issues made up a third of claims, cancer was just under a quarter, and mental health accounted for 15% of claims.
The average length of a claim was five years and 10 months for full income protection.
Over 8,000 people ‘have benefitted’
The lender said that it had paid almost £89,000 in parent and child cover claims after their child suffered a serious illness. The average age of the child at claim was seven years old.
Personal sick pay protection, which is aimed at those in higher-risk occupations and those who are self-employed, totalled almost £4m, with payments made to over 1,100 individuals.
The youngest claimant was 17 and the top reasons for claims were musculoskeletal at 45%, fractures at 10%, coughs and colds at 6% and mental health at 5%.
Of the 6% of protection claims that were not paid out, seven in 10 were due to misrepresentation or fraud.
Common areas of misrepresentation include failing to accurately share existing medical conditions, alcohol units and smoking status.
Anna Rogers, head of underwriting and claims at LV=, said: “In 2023, LV= paid out £135m in protection claims, which is the highest on record LV= has paid out for protection claims. More than 8,000 individuals and their families have benefitted from having a LV= protection policy in place, and we’re proud to have supported them through the difficult moments in their lives.
“The value of protection is worth so much more than an insurance payout. The LV= Doctors Services provides valuable support throughout the life of the policy and members also benefit from our Legal Advice Line and Member Support Fund. When people are going through a life-changing event, the relief of knowing that their finances are taken care of can make a difference.
“We were unable to pay 6% of claims, and a good proportion of these outcomes could have been avoided. Providers and advisers must work together to educate customers on the importance of full and accurate disclosures in their applications. This would help break down some of the preconceptions out there about insurance.”
