LV= pays out almost £137 million in protection claims in 2024

Investment, protection and retirement specialist LV=, has increased the amount of personal protection claims paid in 2024 totalling nearly £137m, increasing by almost £2m since 2023. LV= supported almost 8,000 claimants and their families, paying 95% of all individual protection claims, including those already in payment, for life insurance, critical illness and income protection.

In the last five years, LV= has paid out more than £630m in personal protection claims. During this time, LV= has supported almost 38,000 individuals and families through challenging times. 

About the claims (full details are available in the LV= Claims Report 2024)

LV= paid £18.2m in Income Protection (IP)* claims to more than 1,100 individuals and families who couldn’t work due to illness or injury. Musculoskeletal issues (39%), cancer (21%) and mental health (15%) accounted for three quarters of the claims. The average length of a claim was five years, eight months for full IP, with the youngest claimant being 17 years old. 

We paid almost £190,000 in parent and child cover claims providing support to 13 families.  We also paid out £85,000 through the death benefit feature to 14 families who sadly lost a loved one.  

One defining story surrounding LV’s Income Protection offering is Formula 1 broadcaster, Jennie Gow who suffered an unexpected stroke in her early 40’s. Jennie’s policy allowed her peace of mind in her recovery and the ability to go back to work at her own pace. We were also able to fund her speech and language therapy sessions to help Jennie with her recovery, as part of Rehab Support Services which is built into the cover.

LV= also paid out more than £33m in Critical Illness claims to over 429 individuals and families – the highest payment was over £750,000. More than three in five (65%) Critical Illness claims were for cancer, followed by heart attack (10%) and stroke (7%). The most common forms of cancer claims were breast (33%), prostate (16%) and bowel (8%). 

Additionally, LV= paid over £774k for 39 children’s claims. Sadly, the most common reason for claim was for funeral payments. 

Life Insurance claims (including terminal illness ***) totalled more than £80m. LV= paid 97% of these claims and provided support to more than 5,200 families and their loved ones. The highest payment was over £778,000 and the top causes for claims were cancer (40%), heart-related conditions (20%), respiratory (11%) and dementia or stroke (4%). The average age of claimants was 66 years old, while the youngest was 24.

Claims for Personal Sick Pay** protection, which is designed for those in higher risk occupations, resulted in a payout of over £4m to more than 1,000 individuals. The youngest claimant was 20 years old and the top occupations for claimants were HGV drivers, factory workers, warehouse workers, builders and joiners / carpenters. The top reasons for claims were musculoskeletal (48%), fractures (9%), coughs, colds, flu and sore throats (5%) and mental health (5%). 

While 95% of claims paid out in 2024, 5% were not. Of this percentage, over 70% claims were not paid due to misrepresentation or fraud. Common areas of misrepresentation included failing to accurately disclose existing medical conditions, alcohol units consumed and smoking status. We include a more detailed breakdown of these in the LV= Claims Report 2024.

Anna Rogers, Head of Underwriting and Claims at LV=, said: 

“Reflecting on last year, I’m proud to say that our 2024 payout for protection claims totalled almost £137m, the highest on record in LV= history. Behind each of these cases is a real person, and in 2024 we supported almost 8,000 individuals and their families through the difficult times in their lives.

“A feature of our protection policies includes the LV= Doctors Services, which provides valuable support throughout the life of the policy. Members and policy holders also benefit from our Legal Advice Line and Member Support Fund. This year, we’ve seen a significant rise in usage of our mental health support, up 61% compared to 2023, and a 20% increase in overall use of LV= Doctors Services.

“Our Reaching Resilience research highlighted that more than half (56%) of working people have experienced at least one life event in the last three years where protection could have supported.  Jennie Gow’s story is a real life example that holding a policy with LV= does not just start and finish with an insurance payout. 

“Protection has an important role to play in helping people improve their financial resilience and offering valuable peace of mind. We’re here to help people live financially confident lives.”

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Notes to Editors

• For more information on the Reaching Resilience report or LV’s protection solutions, please visit https://www.lvadviser.com/knowledge-centre/reaching-resilience and https://www.lvadviser.com/. 
• Unless stated otherwise, the data used in this press release comes from a survey of 2,720 nationally representative UK workers conducted for LV= by Opinium between 15 – 25 October 2024.

Claims – LV= major protection products – 2024