Of the claims that weren’t paid, 2% were declined for non-disclosure and 5% were declined where the claim did not meet the terms of the policy.
Ill health or injury can affect anybody at any time and state support is often insufficient to cover bills, mortgage repayments and maintain individual or family lifestyles.
In January the Department for Work and Pensions (DWP) released figures for those eligible for the Employment and Support Allowance (ESA). Only 22% of those assessed were deemed suitable for welfare support. This highlights the need for individuals to make sure they have the right cover in place to protect their income.
The top three reasons for L&G’s claims were musculoskeletal, mental illness and cancer.
Commenting on the figures, Russell Whitworth, claims & underwriting director for Legal & General said, " I am delighted that we have been able to report such a high percentage of claims paid for our income protection benefit plan.
“This benefit provides a monthly payment in the event someone is unable to work due to an illness or injury. Many people over estimate the amount of money they will receive from their employer or the state in terms of benefit if this were to happen.
“At a time when the state is cutting back on the support it provides, it is vital that customers seek financial advice so they can protect themselves. Having an income protection benefit policy in place gives customers peace of mind."
