Legal & General retail protection paid 91% of income protection claims last year, its statistics have shown.
The provider also paid claims in 2012 for 97.6% of life and 93.1% of critical illness (CI). Of declined claims, 2.3% of claims were repudiated for medical non-disclosure and 4.6% did not meet the CI definitions.
Life claims figures showed a £274m pay out compared to £264m in 2011, with a 5% increase in claims.
There were 3,080 claims paid for CI, the average age of claimant was 48 years and cancer remained the number one reason or claims.
Musculosketal, mental illness and neurological were the three main reason or IP claims with the average age of claimant 42 years.
Russell Whitworth, underwriting and claims director for retail protection business at Legal & General, said: "On average we pay out 8 claims a day. We continue in our work to reduce non-disclosure.
"With advances in medical science more people are surviving a critical illness but it also means that they will need some form of financial support to help them during their treatment, recovery and in some cases to help them live with their illness."
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Totalling £3.4 million
52% y-o-y growth
'Look beyond the bare statistics and ask why differentials exist'