Mutual insurer LV= paid individual protection claims totalling £135m during 2023, up 6% since 2022.

LV= supported more than 8,000 claimants and their families paying 94% of all individual protection claims including life, critical illness and income protection.

LV= paid out more than £27m in Critical Illness claims in 2023 to over 370 individuals and families, with the highest payment of more than £600,000. Cancer accounted for 59% of all critical illness claims, followed by heart attack (10%) and stroke (5%). The most common forms of cancer claims were breast (25%), bowel (13%) and prostate (12%). In addition, LV= paid a total of over £605,000 for 25 children’s claims. The majority were cancer claims, with the youngest claimant being one day old.

Life Insurance claims (including terminal illness claims) totalled more than £87m, supporting 5,500 families and their loved ones. The highest claim payment was £2m and the top causes for claims were cancer (36%), heart-related conditions (23%), respiratory (9%) and stroke or brain haemorrhage (5%). The average age at claim was 65 and the youngest was 28.

LV= paid nearly £17.2m in Income Protection (IP) claims to more than 1,100 individuals and families. Musculoskeletal issues (33%), cancer (23%) and mental health (15%) accounted for over half of all income protection claims. The average length of a claim was five years 10 months for full Income Protection. We paid almost £89,000 in Parent and Child cover claims after their child suffered a serious illness. The average age of the child at claim was seven years old.

Claims for Personal Sick Pay protection, which is designed for those in higher risk occupations and those who are self-employed, totalled almost £4m with payments made to more than 1,100 individuals. The youngest claimant was 17 and the top reasons for claims were musculoskeletal (45%), fractures (10%), coughs and colds (6%) and mental health (5%).

Overall, 6% of LV= protection claims were not paid out in 2023. Of the 6% which were not paid, over 7 in 10 were because of misrepresentation or fraud. Common areas of misrepresentation included failing to accurately disclose existing medical conditions, alcohol units consumed and smoking status. LV= also reported on claims that couldn’t be paid due to not meeting the policy definitions, with a more detailed breakdown of these in its latest claims report.

Anna Rogers, head of underwriting and claims at LV=, said: “In 2023 LV= paid out £135m in protection claims which is the highest on record LV= has paid out for protection claims. More than 8,000 individuals and their families have benefited from having a LV= protection policy in place, and we’re proud to have supported them through the difficult moments in their lives.

“The value of protection is worth so much more than an insurance payout. The LV= Doctors Services provides valuable support throughout the life of the policy and members also benefit from our Legal Advice Line and Member Support Fund. When people are going through a life-changing event, the relief of knowing that their finances are taken care of can make a difference.

“We were unable to pay 6% of claims and a good proportion of these outcomes could have been avoided. Providers and advisers must work together to educate customers on the importance of full and accurate disclosures in their applications. This would help break down some of the preconceptions out there about insurance.”