Royal London has reported that there were 73 new claims paid in 2014, and 90% of income protection claims were successful.
Its UK intermediary protection business, which includes the brands Scottish Provident and Bright Grey, had 246 income protection claims in payment, totalling just over £3.2m.
The average pay out for an income protection claim last year was over £13,000 and the average age was just 41 years old. The top five reasons for claim were cancer, musculoskeletal conditions, mental health illnesses, stroke and multiple sclerosis. These five reasons represented over 80% of new claims in 2014.
The average duration of an income protection claim was just over four years.
Debbie Kennedy, head of protection for Royal London’s intermediary division, said: “It’s reassuring to report our 90% figure for income protection claims paid. Overall our claims experience adds strength to our reputation of aiming to pay as many claims as possible. This supports our commitment to offer a wide range of products to suit different customers’ needs, and provide support in a way that complements their needs at that time.
“The crucial role an income protection product can play, by providing ongoing support for someone during unexpected ill-health and disability, is evident in the fact our income protection claims pay out for over four years on average. It’s also interesting to see that three of the most common reasons for a critical illness claim also appear on our income protection claims list: cancer, stroke and multiple sclerosis.
“As a partner of the 7 families initiative (which has created a real focus on the benefits of having income protection cover) we are keen to stress the benefit Income Protection can offer someone if they experience unexpected illness or injury.”