There has long been a misconception that insurance companies do not pay out on protection policies. It’s simply not true – as proven by the latest ABI data, which shows that insurance companies paid out a record £8bn in valid protection claims in 2024.

To further prove the point and to demonstrate the importance of the likes of life insurance, critical illness cover and income protection, providers will often release their claims data. In these annual reports, they will share key information such as the number of claims paid and the value of claims per type of protection policy alongside a number of key stats and success stories.

So what can we learn about protection cover in these reports? Let’s look at three examples to find out.

Busting the myth

Aviva is one of the UK’s largest protection providers and in 2024, they paid out £1.33bn to customers – settling nearly 53,000 claims. Legal & General is another large protection provider in the UK, paying nearly 21,000 claims in 2024, with over £1bn paid out to customers. This equates to more than £2.9m paid out every single day.

According its latest report, Royal London paid out 98.7% of its claims in 2024, amounting to more than £751m paid out to over 65,000 customers across the UK.

It’s a similar story across the different insurance companies and providers – they are paying out on valid claims. If you have been hoodwinked by this misconception, it’s never too late to have a conversation about putting protection in place.

Cover for the long term

Digging into Aviva’s report, you’ll find that the average duration for an income protection claim is 6 years, 9 months. Income protection provides a financial lifeline should you be unable to work due to illness or injury. Can you imagine trying to keep the bills paid if you were unable to work for over 6 years? Worry not with income protection.

In fact, one of Aviva’s longest-running income protection claims still being paid in 2024 has run for more than 23 years. The customer claimed a couple of years after starting the policy in their 30s and has received more than £1.5m through their monthly benefit.

Straight to the rescue

When taking out such policies, we often hope we never need to claim. However, the reports show that claims can sometimes come almost straight away. According to Legal & General, the shortest length of policy at claim in 2024 was just 3 days for an income protection policy. For critical illness cover, it was slightly longer at only 5 days.

Meanwhile, Royal London revealed that nearly 28% of claims were made in the first five years of the policy.

Think you’re too young? Think again!

It’s also possible for us to think of protection as something we need later in life – not something to worry about while we’re young and fit. The claims reports tell us to think differently.

Aviva’s latest report highlights a 2024 claimant aged just 23 years old for a life insurance policy with critical illness cover. The policyholder received £71,500 for a cancer diagnosis after paying just £10.85 per month for his policy. The youngest claimant recorded by Legal & General was younger again at 20 years old for a life insurance policy.

Across the year at Royal London, more than a quarter (26%) of claimants were under the age of 45.

Cancer is often the leading cause of claims

According to Macmillan, someone is diagnosed with cancer on average every 75 seconds in the UK. It’s hardly surprising then that cancer is regularly the leading cause of claims against protection policies.

Legal & General’s data reveals that 63.4% of critical illness claims are for a cancer diagnosis, followed by heart conditions (12.8%) and strokes (7.4%). Alongside critical illness cover – which provides a tax-free lump sum pay out for specified serious illnesses – cancer is the leading cause of claims for life insurance and children’s critical illness cover. It is also second for income protection, according to L&G.

In the Royal London report, 31.9% of claims on critical illness policies were for breast cancer – the most prevalent cancer among claimants. In 2024, Royal London paid out more than £31m to those with breast cancer, allowing them to focus on their health and recovery, rather than their finances.

Time to consider vital cover?

Whether you don’t have protection in place or your policies were set up years ago, there’s never been a better time to speak to a qualified protection adviser and review your options. Not only does protection provide a financial lifeline for you in the event of injury or illness, it can give peace of mind and security to your family should the worst ever happen.

Don’t leave anything to chance, and don’t believe any misconceptions. Speak to an adviser today and explore your options.  

Approved by The Openwork Partnership on 20/05/26.

Leam Financial Services is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.