Bright Grey has announced it paid 96% of life claims last year, an increase of 5% on the previous figures.
The average pay out from the Royal London Group protection provider was £92,000, with the 4% rejected for non-disclosure reasons.
Kevin Stevens, head of sales at Bright Grey, said: "Rates are cheaper than they have ever been, but advisers shouldn't let the issue of price cloud their judgement when advising on life insurance.
"The single most important factor clients should be interested in when buying life insurance is whether it will pay out or not. So it makes sense that enormous consideration is given to providers' claims paid statistics."
