LV= paid out £137m in protection claims in 2024.
This was up by £2m from 2023, with the provider supporting almost 8,000 claimants and their families, according to its 2024 claims report.
The report showed 90% of individual protection claims were accepted including 97% for life insurance claims, 90% of critical illness claims and 90% of income protection claims, which included those already in payment.
Over the last five years, LV= has paid out more than £630m in personal protection claims. During this time, LV= has supported almost 38,000 individuals and families through challenging times.
Income protection
LV= paid £18.2m in income protection (IP) claims to more than 1,100 individuals and families. Income protection figures include new claims of £3.5m, and claims already in payment that continued to be paid in 2024 of £14.7m.
Musculoskeletal issues (39%), cancer (21%) and mental health (15%) made up three quarters of the claims. The average length of a claim was five years, eight months for full IP, with the youngest claimant being 17 years old.
LV=paid almost £190,000 in parent and child cover claims providing support to 13 families. It also paid out £85,000 through the death benefit feature to 14 families.
Critical illness
LV= paid out more than £33m in critical illness (CI) claims to over 429 individuals and families – the highest payment was over £750,000.
Almost two thirds (65%) of CI claims were for cancer, followed by heart attack (10%) and stroke (7%). The most common forms of cancer claims were breast (33%), prostate (16%) and bowel (8%).
LV= paid over £774,000 for 39 children’s claims. The most common reason for claim was for funeral payments.
Life insurance
Life insurance claims (including terminal illness) totalled more than £80m.
This included claims for life insurance, family income benefit, terminal illness and whole of life products (some of which are non-underwritten products). LV=’s whole of life products are no longer open to new business.
The provider paid 97% of these claims and provided support to more than 5,200 families and their loved ones.
The largest payment was more than £778,000 and the top causes for claims were cancer (40%), heart-related conditions (20%), respiratory (11%) and dementia or stroke (4%).
The average age of claimants was 66 years old, while the youngest was 24.
Sick pay
Claims for personal sick pay protection, which is designed for those in higher risk occupations, resulted in a pay out of over £4m to more than 1,000 individuals.
Personal sick pay figures include new claims of 2.4m, and claims already in payment that continued to be paid in 2024 of £7.4m.
The youngest claimant was 20 years old and the top occupations for claimants were HGV drivers, factory workers, warehouse workers, builders and joiners / carpenters.
The top reasons for claims were musculoskeletal (48%), fractures (9%), coughs, colds, flu and sore throats (5%) and mental health (5%).
While 95% of claims paid out in 2024, 5% were not. Of this number, more than 70% claims were not paid due to misrepresentation or fraud.
Common areas of misrepresentation included failing to accurately disclose existing medical conditions, alcohol units consumed and smoking status.
Anna Rogers, head of underwriting and claims at LV=, said: “Reflecting on last year, I’m proud to say that our 2024 pay out for protection claims totalled almost £137m, the highest on record in LV= history.
“Behind each of these cases is a real person, and in 2024 we supported almost 8,000 individuals and their families through the difficult times in their lives.
“A feature of our protection policies includes the LV= doctors services, which provides valuable support throughout the life of the policy.
Members and policy holders also benefit from our legal advice line and member support fund. This year, we’ve seen a significant rise in usage of our mental health support, up 61% compared to 2023, and a 20% increase in overall use of LV= doctors services.
“Our Reaching Resilience research highlighted that more than half (56%) of working people have experienced at least one life event in the last three years where protection could have supported.
“Protection has an important role to play in helping people improve their financial resilience and offering valuable peace of mind. We’re here to help people live financially confident lives.”