The income protection statistics have not budged from 2006 but the critical illness claims paid increased 5 per cent from 81 per cent in 2006.
The firm paid £54.9m to policyholders last year, which includes £5.8m in critical illness claims and £15.2m in income protection claims.
Mental disorders accounted for 30 per cent of income protection claims followed by 20 per cent for musculoskeletal disorders and 11 per cent for circulatory disorders. The average age of female income protection claimants was 44 years, while men who claimed were on average three years older.
Cancer claims accounted for almost 70 per cent of all critical illness claims.
The average female claimant’s age was 45 years, and 51 years for men.
Head of protection Chris McFarlane says: “We are pleased to have seen an improvement in our claims record. We have put a lot of work into developing ways to help financial advisers and their clients with policy applications and claims, so that valid claims are paid promptly, and that the risk of non-disclosure is significantly reduced.”
Lifesearch head of protection strategy Kevin Carr says: “We applaud LV= for publishing their claims statistics and believe that this kind of move is crucial for the development of clarity and transparency in the industry. LV= is directly helping consumers to realise the value of protection, which is particularly important in the current economic climate, and also helping to improve consumer trust – all of which is good for consumers, financial advisers and product providers.”