Figures released by Legal & General (L&G) show that it paid 93% of income protection benefi...
L&G pays vast majority of income protection claims
Figures released by Legal & General (L&G) show that it paid 93% of income protection benefit claims in 2010.
The firm said that of the 7% unpaid, 2% were declined for non-disclosure and 5% because the terms of the policy were not met by the claim.
The top three reasons why people claimed on their health insurance were mental illness, cancer and musculoskeletal. Legal & General’s income protection benefit plan has recently been improved to make it more comprehensive.
The claims and underwriting director at Legal & General, Russell Whitworth, says he is delighted to report such a high percentage of health insurance claims paid.
He adds: “This benefit provides a monthly payment in the event someone is unable to work due to an illness or injury. Many people over estimate the amount of money they will receive from their employer or the state in terms of benefit if this were to happen.
“At a time when the state is cutting back on the support it provides, it is vital that customers seek financial advice so they can protect themselves.”
Ill health can hit at any time and state support will not always be enough to cover your outgoings during a period where you are unable to work.
The Department for Work and Pensions (DWP) released figures in January relating to eligibility for the Employment and Support Allowance (ESA). Of those assessed, only 22% were considered suitable for welfare support.
According to Legal & General, this highlights the importance of having health insurance in place to protect an individual’s income.