Royal London paid nine out of ten IP claims in 2014

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Royal London has revealed that it paid out on 90% of Income Protection (IP) claims in 2014, with a total payout of over £3.2m.

There were 246 income protection claims in payment in 2014, with 73 new claims made which were paid.

The average payout for income protection last year was over £13,000 with an average claimant age of 41 years old.

The top 5 reasons for claims were cancer, musculoskeletal conditions, mental health illnesses, stroke and multiple sclerosis, accounting for over 80% of new claims.

The average duration of an income protection claim was just over 4 years.

Royal London's intermediary protection business includes the Scottish Provident and Bright Grey brands.

Royal London recently announced a 94% payout rate on its 2014 critical illness claims.

Debbie Kennedy, head of protection for Royal London's Intermediary Division, said: "It's reassuring to report our 90% figure for income protection claims paid.

"Overall our claims experience adds strength to our reputation of aiming to pay as many claims as possible.

"This supports our commitment to offer a wide range of products to suit different customers' needs, and provide support in a way that complements their needs at that time."

"The crucial role an income protection product can play, by providing ongoing support for someone during unexpected ill-health and disability, is evident in the fact our income protection claims pay out for over 4 years on average.

"It's also interesting to see that three of the most common reasons for a critical illness claim also appear on our income protection claims list: cancer, stroke and multiple sclerosis."

"As a partner of the 7 families initiative (which has created a real focus on the benefits of having income protection cover) we are keen to stress the benefit Income Protection can offer someone if they experience unexpected illness or injury."

Further Reading: 

PG Mutual announces record results

Royal London backs warning over soaring funeral costs

Royal London protection profits up

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