ICMIF’s latest member, investment, protection and retirement specialist LV= (UK), paid individual protection claims totalling GBP 127m during 2022. LV= supported more than 8,000 claimants and their families paying 95% of all individual protection claims including life, critical illness and income protection.

About the claims

LV= paid out more than GBP 28m in Critical Illness claims in 2022 to more than 360 individuals and families, with the highest payment of more than GBP 400,000. Cancer accounted for 56% of all critical illness claims, followed by heart attack (14%) and stroke (7%). Almost six out of 10 claims were made following a cancer diagnosis, with breast (24%), prostate (14%), bowel (13%) and skin (10%) accounting for most claims. In addition, LV= paid a total of over GBP 544,000 for 25 claims involving children from newborn to 17 years old.

Life Insurance claims (including terminal illness claims) totalled more than GBP 80m, supporting 5,000 families and their loved ones. The highest claim payment was GBP 1m and the top causes for claims were cancer (40%), heart-related conditions (20%), respiratory (9%), Covid-19 (6%) and stroke (5%). The average age at claim was 63 and the youngest was 25.

LV= paid nearly GBP 15m in Income Protection (IP) claims to more than 1,000 individuals and families. Musculoskeletal issues (25%), cancer (20%), mental health (12%) and fractures (10%), accounted for over half of all income protection claims. The top occupations making a claim were doctor, dentist, nurse, teacher and vet.

Claims for Personal Sick Pay protection, which is designed for those in higher risk occupations and those who are self-employed and contract workers, totalled more than GBP 3m with payments made to more than 1,100 individuals. The youngest claimant was 22 and the top reasons for claims were musculoskeletal (38%), Covid-19 (15%), fractures (12%), coughs, colds (5%) and mental health (4%). The top occupations to claim were warehouse worker, carpenter, builder, HGV driver and nurse.

In total, LV= paid almost 95% of protection claims in 2022. Full details are available in the LV= Claims Report 2022. LV= says it was unable to pay the remainder for a variety of reasons including failing to disclose existing medical conditions, misrepresentation and fraud, and not meeting the policy definitions. LV= provides a more detailed breakdown of these in its claims report.

Anna Rogers, Head of Underwriting and Claims at LV=, said: “I’m proud that in 2022 LV= paid out GBP 127m in protection claims; it’s the highest-ever amount we have paid for protection claims. Almost 8,000 individuals were supported by an LV= protection policy – and that’s not counting the numerous families and loved ones who a protection policy has also supported.

“Protection insurance has an important role to play in helping people improve their financial resilience and ensure that an injury or illness does not become a financial disaster for families.

“Our help does not start and end with a claim payment. Having a policy with LV= is more than an insurance payout. For example, the LV=Doctors Services provides valuable support throughout the life of the policy and members also benefit from our mutuality with support via our Legal Advice Line and Member Support Fund,” she concluded.