Critical illness payout rates

The table below shows critical illness payout rates for individual insurers over the past two years:

The information in this table has been taken from each providers website and is correct as of 29/08/24

As you can see, payout rates vary from year to year for each insurer, but AIG have remained consistent with a 95% payout rate since 2022.

Most insurers have payout rates above 90%, suggesting that the likelihood of a critical illness claim being accepted is high.

Please note, some insurers haven’t published their critical illness claims statistics, so we weren’t able to include these.

Reassured can compare life insurance with critical illness cover quotes for AIG, Legal & General, Aviva and LV=, free of charge.

A small number of critical illness claims are not paid out each year due to the following reasons:

• Non-disclosure. This is when a policyholder hasn’t been fully honest during the application process. For example, if you fail to disclose a pre-existing health condition when applying for critical illness cover, this will invalidate your policy and could affect your payout.
• The illness you’re claiming for isn’t covered by the policy. Insurers decline claims for conditions which don’t meet their specific definitions. Generally, an illness will need to progress to a specified severity before you can make a successful claim.
• Missed payments. If you haven’t kept up to date with your monthly premiums, your policy will expire, and you won’t be able to submit a valid claim.

Most claims that aren’t paid are due to non-disclosure. Therefore, it’s essential that you provide accurate and truthful information when applying for cover.

In 2022, the average critical illness payout was £66,296^[1].

However, exactly how much that’s paid out varies from person to person as everyone has different needs and circumstances.

When taking out a policy you can choose a suitable level of cover based on what you’d like to help protect should you fall unwell.

Depending on your personal circumstances and budget, it’s possible to secure up to £1 million of life with critical illness cover through Reassured.

Unlike life insurance claims, critical illness claims require medical evidence from your doctor. Therefore, a claim can take slightly longer - usually around 8 weeks.

When diagnosed with a critical illness, you should contact your provider as soon as possible with any details of your condition and/or treatment.

They’ll check that your diagnosis meets their claims criteria and review the information you provided about your health when taking out the policy.

Some claims can take longer if there’s a delay with receiving your medical report, or if further information/investigation is required regarding your condition.

Once your claim has been assessed and accepted, payment will be made directly to your bank account within a few days.

Upon discussing your initial claim, your insurance provider will be able to provide you with a more accurate timescale of when the claim is likely to be paid.