April 13, 2021
How many Protection claims were paid 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.

Life claims

  • 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.

Covid impact

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%)

Financial support

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

Next steps

Whilst you are welcome to get a quote online, we would recommend you speak to one of our advisers.

Any quote that your adviser provides you with will take into account your circumstances and medical history, as well as your budget!

An online quote is just that – a quote – it isn’t a definite offer of cover. What really matters is the premium you are offered, after your application has been assessed.

Call Freephone 0800 644 4468 – Monday to Thursday from 09.00 to 19.00 and on Friday between 09.00 and 17.00.

Please feel free to read our Independent client reviews, or read about the team at Future Proof

Call me back

Jon’s moving story – being diagnosed with cancer

The protection industry pays out over £5.7bn in claims in 2019

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Will my claim be paid?

Why you can trust Future Proof.

The benefits of an index-linked insurance policy

Take a look at our handy guides ‘What Cover is Right for me?’

Do you suffer from a medical condition and concerned you can’t secure Life Insurance?  Please view our ‘Medical Guides’ for further information.

Whilst we will make every endeavour to help someone to arrange insurance, there is no guarantee of success.  All applications are subject to underwriting.

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