There were 73 new claims paid in 2014 and 246 total claims in payment, equating to 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 5 reasons for claim were cancer, musculoskeletal conditions, mental health illnesses, stroke and multiple sclerosis. These 5 reasons represented over 80% of new claims in 2014.
The average duration of an income protection claim was just over 4 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 4 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."
