The average critical illness payout was £73,000.
Ian Smart, head of product development and technical support, said: “We’re very pleased to report such a high claims paid figure for 2012.
“When someone is diagnosed with a serious illness the last thing they will want to worry about is how they will cope financially.
“And the payout from a critical illness plan provides valuable financial support when they need it most.”
Nearly two thirds of claims paid were for cancer (64%) followed by heart attack (14%) and multiple sclerosis (8%).