LV= paid out 93% of critical illness (CI) and income protection (IP) claims in the first half of the year, the provider announced today.
Just 1% of IP claims and 3% of CI claims were rejected as a result of non-disclosure with the remainder turned down because the claimant's condition failed to match the policy definition.
LV= statistics show that the average age of an IP claimant is 44 years old, rising to 47 for the average CI claimant. Mental ill-health is the most common reason for an IP claim (30% of claims) while cancer is the most common cause of a CI claim (58%).
The average annual benefit for an IP claim is £14,389, paying out for an average of just over seven years.
While most protection providers now publish CI claims data, LV= is one of only a few providers to practise the same transparency when it comes to income protection. Those that do publish, all of which are mutual providers with the exception of Legal & General, report pay out rates of more than 90%.
Mark Jones, LV= head of protection, said: "We appreciate that when people make a claim on a protection policy they are likely to be in distress, be it financial or emotional. We publish both our CI and IP claim statistics so that advisers and consumers are aware of why claims can be rejected in order to keep declined claims to a minimum."