Only 6.4% of claims were declined last year – one of the lowest ratios in the industry – of which 1.8% were for non-disclosure and 4.6% were for not meeting the policy definition. In total, £152 million was paid out to 2149 individuals and families, making their lives easier at an extremely difficult time.
Bernie Hickman, managing director of protection at Legal & General said: “We’re in the business of paying claims and that should be the main purpose of any insurance provider. We should be there when people need us most, so to have to decline 148 claims during the course of last year is disappointing. We have worked tirelessly to combat non-disclosure and we have succeeded in reducing these declined claims year-on-year. However, in an ideal world, no policyholder would ever have a claim declined. If you suffer from an illness or condition that is covered on your policy and you have answered all the questions fully at the time of applying, then we will pay out. This is the way it should be for everyone.”
Bernie added: “Protection offers added peace of mind and is good for individuals, for their families and for the State. Fully protected people are less likely to suffer financial hardship, less likely to rely on sick pay and benefits and less likely to require help and handouts from friends and family. Paying out on critical illness claims is absolutely essential to our financial well-being as a society.”