Income protection Updated:
LV= has announced that payouts to its income protection and critical illness customers both rose in 2010.
Ninety-two per cent of income protection claims were paid out by the insurance firm last year, up from 90% in 2009, with an average payout of £15,596 annually over seven years.
The most common reasons for a payout were mental disorders and musculoskeletal problems.
In total, the company paid out £12 million in critical illness claims in 2010, up from £11.9 million in the previous 12 months.
There was also an increase in the percentage of critical illness claims paid out.
Last year, 93.5% of customers claiming on their policy were paid out, totalling £9 million, up from £7.9 million in 2009.
On average, critical illness policies paid out a sum of just over £74,500.
"Our consistently high and improving claims payment illustrates our firm commitment to support people in their time of need, and to limit the risk of any concern at the point of applying for a policy," commented Mark Jones, head of protection at LV=.
Those without any cover should consider an income protection policy as it directly pays you to cover a percentage of your income or set monthly amount should you be unable to work.
Taking out income protection insurance in the UK enables you and your family to avoid suffering financially should you fall sick or have an accident that may lead to periods of unemployment.
You can begin your search for an income protection policy here.
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