Advisers are doing a good job counselling clients Skandia says, as critical illness claims paid rose another 1%, to 89%, in the half year to June 2007.
Since Skandia launched its critical illness contracts in 1991, 2033 claims have been paid equating to £195m.
Only 2% of claims are declined due to non-disclosure and 9% rejected due to the definition of illness not being met.
The most common condition remains cancer, accounting for 51% of claims, flowed by heart attack 13%.
For females, 58% of cancer claims were for breast cancer; while 15% of male cancer claims were for prostate cancer – of which 59% was a low-grade cancer.
The claimant’s average age is 47 and policies were in force on average 4.8 years before a claim was made.
Children’s cover, automatically provided to all children of Skandia’s policyholders, has paid out a total of £1.5m.
Skandia protection marketing head Ian Brown says it is crucial consumers understand the cover they are taking out.
“Over the years we have been working with advisers to ensure that the information we provide about our critical illness cover is clear, and so it is really encouraging to see a steady increase in the percentage of claims paid,” he says.
“The numbers also strongly demonstrate that advisers are doing a great job in emphasising to their clients the importance of disclosure and understanding the conditions covered.”
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