LV= paid out almost £152m and approved 95% of claims in 2025 – up from £137m and on par with the 95% figures in 2024.
The approval rate for life insurance claims edged up to 98% while income protection (IP) approval rates slipped slightly to 88% which included claims already in payment.
It’s critical illness (CI) insurance claims approval rate was unchanged at 90%.
The mutual said it supported more than 8,000 people and their families throughout the year.
It also took time to highlight reasons why it declined the 5% of claims, which was primarily due to misrepresentation or non-disclosure at application, including smoking status, alcohol consumption and inaccuracies relating to medical history.
Life insurance
LV= paid 98% of all life claims, including claims for life insurance, family income benefit, terminal illness and whole of life products, paying out more than £80m to support more than 5,500 families and loved ones.
The highest payment was £1.1m and the top causes for claims were cancer (40%), followed by heart-related conditions (18%), respiratory conditions (11%) and stroke (4%).
The average claimant age was 66, while, sadly, the youngest claimant was 26.
Critical illness
The mutual paid 444 critical illness claims worth nearly £33m in total with 90% accepted.
The highest claim payment was £1.2m with 60% of claims related to cancer, followed by heart attack (12%) and stroke (6%). The most common cancer types were breast (34%), prostate (10%) and bowel (9%).
A further 32 children’s critical illness claims were paid totalling almost £804,000, with cancer being the most common claim.
Income protection
Health & Protection has asked the mutual for the number of new claims and the approval rate of new claims made in 2025.
Including those claims already in payment, LV= approved 88%, down from 90% in 2024, and paid £18.1m to 1,100 individuals who were unable to work due to illness or injury.
New claims totalled £3m and claims already in payment that continued to be paid accounted for £15.1m.
It noted that of its claims in payment, 40% were new claims in 2025 and 60% were made before 2025 and still in payment.
The primary reasons for claims were musculoskeletal issues (37%), cancer (20%), mental health (14%) and gynaecological conditions (4%).
The longest claim being paid in 2025 had been in payment for 34 years and six months with the average length of claim being five years and 10 months.
Beyond core claim payouts, just under £68,000 was paid in parent and child cover claims, with £105,000 paid in death benefit claims to families who experienced the loss of a loved one and a further £80,000 was paid in fracture cover claims.
Personal sick pay claims totalled £4.3m, supporting more than 1,000 individuals in higher-risk occupations, including HGV drivers, construction workers and warehouse employees.
New claims paid totalled £2.7m while claims already in payment that continued to be paid reached £1.7m.
The top reasons for claims were musculoskeletal (50%), fractures (10%), coughs, colds, flu and sore throats (7%) and cancer (5%), and the youngest claimant was just 17 years old.
Declined claims
In it’s claims report, the mutual highlighted the 5% of claims it declined.
“Your client takes out personal protection so they have peace of mind that it’s there if they need it, and it’s important that they can count on their cover during those crucial moments,” it said.
“Providers and advisers can work together to ensure their client isn’t in this position. The main reason we couldn’t pay claims was down to misrepresentation.”
The most common areas of misrepresentation were: smoking, alcohol, BMI, health history and current health problems not being disclosed.
LV= head of underwriting and claims Anna Rogers said it was just as important to be transparent about the 5% of claims the mutual could not pay and why.
“We need to keep the conversation going about the industry wide issue of misrepresentation,” she said.
“Awareness and education is key to industry collaboration and improving the outcome for those individuals and their loved ones.”
On the wider claims figures, Rogers added the insurer was pleased to have supported so many customers and their families, with a record level of claims paid during the year.
“Income protection in particular continues to play a vital role, not only through regular claim payments, but through the additional features and support it offers when customers need it most,” she said.
“Behind every claim is an individual and their family facing challenging circumstances, and our focus remains on providing practical, timely and compassionate support.
“Transparency is also key. While we are proud of the proportion of claims paid, it is important to clearly communicate the reasons why some claims are not met, reinforcing the importance of accurate disclosure at application. We want to help people continue to live financially confident lives.”
