How many Protection claims were paid out by Legal & General in 2020?
In 2020, Legal and General paid out over £763 million across their Life, Terminal illness, Critical Illness cover and Income Protection policies. This equates to 96% of all claims, supporting 15,855 customers and their families. Overall, £32 million more than in 2019.
- 97% of claims paid out
- 11,755 customers supported
- £459.5m total claim value was paid in 2020
- The youngest claimant was just 22 years old and the oldest 103 years
- The average age of claimants was 68 years
- Reasons for claims: 34% Cancer, 15% Heart related and 9% Covid-19
£97.67m was paid out in 2020 in terminal illness claims. The vast majority (94%) of which were due to a cancer diagnosis.
L&G paid out 99% of the 1,214 Covid-related death claims it received last year, the average pay out being £32,287 per claim which in total amounted to £39m . The insurer found that one in 10 death claims during 2020 were Covid-19 related.
Critical illness claims
For critical illness (CI), the insurer paid out 92% of claims amounting to £202,559,414 across 2,843 policies and the average pay out was £71,248.
The most common conditions were:
- 64% Cancer
- 13% Heart related
- 7% Stroke
The average claimant age was only 48 years old.
Children’s Critical illness cover helped 130 children. 97% of claims were paid out totalling £1,947,523. The most common reason for claiming was Cancer, 63%, 7% Child funeral benefit and 5% Benign brain tumour.
Income protection claims
For income protection, L&G paid 93% of claims to 544 people.
The three main reasons for claims were:
- Musculoskeletal disorders (32%)
- cancer (17%)
- mental health (12%)
David Banks, director of claims and underwriting at L&G, said: “If 2020 has taught us anything it is that protection has never been more important. One in ten of all death claims were paid out because of Covid-19, something that wasn’t even on our radar 18 months ago, which further emphasises the benefits of insurance.”
“It also reiterates the importance of seeking help; early intervention is key, which is why our IP protection includes help and support for customers to access as soon as they’re ill. The sooner we know, the sooner we can help prevent their health problem from progressing.”
Non payment of claims
More than nine in 10 claims that were not paid were a result of ‘deliberate or reckless misrepresentation’ at application stage. More than half of life insurance claims (53%) which were refused were due to the misrepresentation of a condition related to the cause of death. eg having a heart condition but not mentioning it on the application form and subsequently dying from the heart condition.
Meanwhile, non-payment of critical illness claims were also due to misrepresentation of a condition and then becoming ill from that condition. Misrepresentations around lifestyle were also apparent – most commonly alcohol consumption and smoking. This was the second most common reason for non-payment of claims.
Source: Cover Magazine April 2021
For full Legal and General claims figures click HERE
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